Metronome has implemented LayerZero to enable cross-chain capabilities
Since launching the Metronome ecosystem, we've been committed to creating more liquidity and optimizing the overall user experience. We first launched on Optimism to speed up transactions and reduce fees. Now, we're pleased to announce we have successfully integrated with LayerZero, a cross-chain messaging protocol that utilizes Omnichain Fungible Tokens (OFTs). Following a thorough audit, this new addition aims to give users a multitude of benefits while improving capital efficiency.
If you're new to LayerZero, think of its Omnichain Fungible Token standard as an evolution of ERC-20 tokens. While ERC-20 tokens are limited to apps on an EVM, OFTs can be used in dApps across any chain that LayerZero supports - no wrapped token bridging required. This is made possible through seamless contract-to-contract communication, eliminating the complications often associated with bridging between different chains.
This is because, in traditional bridging, you'd typically need multiple wrapped versions of a token for each separate chain, making token management complex. LayerZero tackles this by using a burn-and-mint mechanism for OFTs. When you move your tokens from one chain to another, the original OFTs are burned, and an equivalent number is minted on the destination chain. This ensures that the total supply remains constant and allows for tokens to exist natively on multiple chains, no matter which network you're operating on.
The upgrading of synthetic contracts to the Omnichain Fungible Token (OFT) standard will enable liquidity to be uniform across all supported networks. What this means for users is a seamless cross-chain experience with optimal rates regardless of the network you're using.
For those interested in Smart Farming, this upgrade streamlines the capacity for our synthetic assets to be arbitraged cross-chain. This means steadier rates and greater capacity for users to take advantage of Metronome's Smart Farming yield opportunities.
This upgrade also significantly streamlines the expansion to other LayerZero-supported networks, meaning we can sidestep the process of building liquidity pools from scratch as all liquidity is utilized together.
There are three main ways that users can interact with this integration:
Trade synth assets directly from AMMs and move them cross-chain through the Stargate frontend.
Take advantage of synchronized, cross-chain liquidity for greater access to Smart Farming yield.
In the future, you will be able to interact with cross-chain support within the Smart Farming module, which will trigger a transaction sequence that automatically mints synth assets and executes swaps on the network offering the most favorable exchange rate via its supported AMM.