Overview
The demand for a cross-chan trade system that is actually scalable.
The attention of the industry has been redirected towards the mission-critical nature of DeFi due to the recent spate of collapses among lenders, financial institutions, and centralized exchanges. More than ever, it is evident that Web3 demands a level of systemic transparency that is exclusive to DeFi protocols.
Because they allow on-chain trade infrastructure to scale to meet increased demand, cross-chain communications and value transfer protocols will become even more crucial as a result of the increasing flight away from centralized custodians and trading venues. It is now introduced the deSwap Liquidity Network (DLN), a new, safe, and scalable infrastructure for cross-chain value transfer that is zero-slippage and depthless.
All bridges have traditionally been constructed as liquidity protocols, with all transfers going via common liquidity pools. This “continuously locked liquidity” paradigm has a number of drawbacks and compromises, such as:
The amount of liquidity that is locked in the pool on the destination chain limits the maximum amount that can be transferred.
Unpredictable slippage: customers’ sole option is to change the “slippage tolerance” setting because they are unable to forecast with certainty how much money they will get from the destination chain’s liquidity pool.
Reversed transactions that result in slippage surpassing the designated tolerance parameter because they were triggered by other transfers that were processed before the user’s transaction reached finality
Value-transferring bridge design needs to be rethought from the ground up with the following presumptions and characteristics in order to address these issues. It is imperative that the new paradigm be developed on top of an existing DeFi ecosystem-compatible cross-chain communications infrastructure. Value-transferring protocols should operate asynchronously likewise, avoiding any liquidity pools so that consumers are only exposed to minimum risk at the time of settlement, as opposed to continuing to face continuous risks as cross-chain infrastructure is inherently asynchronous.
Built on deBridge and with a distinctive 0-TVL design, DLN (deSwap Liquidity Network) is a high-performance cross-chain trade infrastructure. As an alternative to liquidity pools, DLN uses a self-organized liquidity network to execute all trades asynchronously. This gives developers and projects access to the fastest cross-chain experience available on the market, allowing liquidity and information to be transferred with a faster time to certainty than any legacy cross-chain remedy.
The cross-chain paradigm is changed from bridging to networking by DLN, which makes a variety of special features possible for users and applications.
Limit orders for every trade on the cross-chain
No slippage, regardless of order size
Infinite depth of market
Low fees and guaranteed rates
Quick settlement
Trading native tokens (no wrapped asset custodial risks)
At risk, zero locked liquidity (0-TVL)
quickly scalable (able to handle any amount of trading)
Gasless limit orders (which will be available soon) allow users to commit orders without paying anything up front; tokens are only taken out if execution is assured on the destination chain.