Emmet Liquidity Bridge

A Liquidity Bridge between EVM and non-EVM chains, protected by a network of decentralized validators, serves to enable the seamless transfer of assets and liquidity between these disparate blockchain ecosystems.

  1. Token Staking and Yield Farming on EVM Chain (e.g., Ethereum) and Non-EVM Chain (e.g., TON):

  • Users stake their tokens in liquidity pools on EVM and non-EVM chains to earn rewards, such as yield farming incentives or transaction fees.

  • The Liquidity Bridge ensures that the total value locked (TVL) in these liquidity pools remains balanced between the two chains to prevent disproportions.

  • Validators monitor the TVL on both chains and adjust the token transfer rates between chains to maintain equilibrium. This ensures that users receive fair rewards for their staked tokens.

  1. Cross-Chain Token Transfers with Liquidity Pool Rebalancing:

  • When a user transfers tokens from Chain A to Chain B through the Liquidity Bridge, the bridge locks an equivalent amount of tokens in the liquidity pool on Chain A and releases tokens from the corresponding liquidity pool on Chain B to the user.

  • To address potential imbalances caused by fluctuations in token transfers, the Liquidity Bridge periodically rebalances the liquidity pools on both chains.

  • Validators monitor both chains' transaction flow and TVL, adjusting the token transfer rates and liquidity pool allocations as needed to maintain parity and optimize liquidity provision.

  1. User Experience and Accessibility:

  • The Liquidity Bridge aims to provide a seamless and user-friendly experience for token transfers and liquidity provision across different blockchain networks.

  • Users can easily interact with liquidity pools on both chains, transfer tokens between chains, and earn rewards without encountering significant barriers or complexities.

In summary, Emmet Liquidity Bridge between EVM and non-EVM chains with liquidity pools on both sides facilitates cross-chain token transfers, yield farming, and liquidity provision while ensuring fairness, efficiency, and market stability through decentralized governance and liquidity pool rebalancing mechanisms.

Last updated