The future of blockchain is unquestionably multichain.
Various alternative Layer 1 (L1) solutions are flourishing, with Layer 2 (L2) scaling solutions like Optimistic and zk rollups increasingly adopted within the Ethereum ecosystem. Standalone ecosystems like Cosmos and Polkadot are capturing market share, creating a demand for the capability to swap native assets across chains.
However, a significant portion of decentralized exchanges (DEXes) are limited by the blockchain they operate on, a constraint rather than a feature. While functional, wrapped tokens and cross-chain bridges are often perceived as insecure and cumbersome. There are serious risks associated with these implementations, as several high-profile hacks have made evident.
In this context, the concept of an omnichain interoperability protocol and a messaging transport layer becomes crucial. These tools enable different blockchains to communicate and connect, expanding the reach and functionality of DEXes. One such innovative platform embracing this approach is InterSwap.
Introducing InterSwap
InterSwap is the first fully composable native asset omnichain Automated Market Maker (AMM) with unified liquidity, leveraging advanced general message passing technologies . It allows a secure and smooth exchange of native assets across different chains in a single transaction, eliminating the need for an intermediary chain, bridge, or wrapped tokens. InterSwap is not confined to a single blockchain and covers Ethereum Virtual Machine (EVM) and non-EVM networks, setting itself apart from traditional multi-chain DEXes.
If you want to know more about what exactly “Fully Composable Native Asset Omnichain Automated Market Maker (AMM) with Unified Liquidity” mean, check out our Knowledge Series -
The Current Cross-Chain Landscape
The current cross-chain landscape is dominated by solutions that require intermediaries for transactions. These implementations can be categorized into wrapped/pegged assets bridge tokens, and intermediate chains.
Each comes with its set of challenges and has been susceptible to significant exploits, undermining the security and trust in cross-chain transactions.
InterSwap aims to address these issues by enabling direct omnichain swaps without an intermediate currency or protocol. It leverages the infrastructure of advanced technologies
The InterSwap Difference
InterSwap is an attempt to solve the issue of fragmented liquidity in Decentralized Finance (DeFi). Traditionally, liquidity providers must choose a specific pool for each chain, leading to liquidity fragmentation.
With InterSwap, liquidity is unified across all chains, enabling providers to receive fees from all transactions across the pool. This feature could potentially rival centralised exchanges (CEXes) in terms of deep liquidity and accurate price discovery.
InterSwap's AMM allows seamless movement from chain to chain, truly embodying interoperability. At launch, it’ll support the following:
-
Single transaction native assets omnichain swaps.
-
Multichain AMMs enabling native omnichain swaps.
-
Multichain lending protocols going omnichain.
-
Bridge aggregators gathering additional routes.
-
Multichain wallets enabling omnichain exchanges for their users.
Key Features & Benefits of InterSwap
InterSwap is not just another AMM DEX in the crowd. It brings several unique and innovative features to the table:
-
Open Omnichain Markets: InterSwap is a decentralised Automated Market Maker that operates without limitations. It enables anyone to create omnichain liquidity pools using either native tokens or ERC20 tokens. Picture a single liquidity pool with USDC on Ethereum, BNB on Binance Smart Chain, MATIC on Polygon, etc. This feature is poised to help build unified liquidity within the DeFi sector.
-
Chain Agnosticism: InterSwap Protocol is designed to support any type of blockchain, including EVM, non-EVM, Cosmos, Sui, Aptos, and others. Users can seamlessly perform omnichain swaps across 8 EVM-compatible networks upon launch. More non-EVM chains will be added during subsequent expansion phases.
-
Custom Liquidity Rewards: For DeFi farmers, InterSwap brings a new reward opportunity.
These features might seem abstract at first, but let break down their potential benefits:
-
Security & Autonomy: InterSwap operates via a suite of open-source, permanent, and immutable smart contracts that are deployed on supported networks.
-
No Need for Intermediaries: InterSwap eliminates the need for wrapped or pegged assets, bridge tokens, or intermediate chains. This reduces systemic risk and simplifies the process for liquidity providers and users.
-
Multi-Asset Pools: InterSwap introduces two types of omnichain liquidity pools for multiple assets: Weighted Pools for non-pegged tokens and Stable Pools for tokens pegged at a 1:1 ratio.
-
Omnichain Smart Routing: InterSwap integrates existing liquidity and enables seamless any-to-any swapping through its own liquidity and omnichain universal messaging, making it a comprehensive solution for all omnichain exchanges.
The potential of InterSwap is quite enormous. It is set to disrupt the DeFi landscape and revolutionize how transactions are done across different chains.