In the rapidly evolving world of blockchain technology, one of the major challenges that users and developers face is the lack of seamless interaction between different blockchain networks. The concept of blockchain interoperability is the key to unlocking the full potential of this revolutionary technology, and one project that aims to bridge this gap with an unwavering focus on security is ChainArQ — the cutting-edge crypto cross-chain service.
The Problem
Each blockchain operates independently, with its own unique set of rules, consensus mechanisms, and functionalities. This fragmentation has resulted in a lack of communication and compatibility between blockchains, creating silos that hinder the efficient transfer of assets and data.
In the absence of a unified solution, a user who wishes to swap a specific token from one blockchain to another might need to navigate through multiple decentralized exchanges, bridges, and liquidity pools, trying to find the most cost-effective and efficient path. This tedious process can be daunting and time-consuming, often deterring users from engaging in cross-chain swaps altogether.
Existing Solutions
Several services, like 1inch, have taken the approach of collecting data for liquidity pools from multiple DEXs and combining that data through complex algorithms to split orders across different DEXs to optimize trades. Such services are knows as Aggregators.
These aggregators are then used in other cross-chain swaps to facilitate transactions between 2 chains. The issue with this approach is that there are multiple aggregators but some of them still fail to index a huge pool of tokens for a variety of reasons, this means that those tokens are excluded from the service altogether.
ChainArQ’s Solution
Step 1: Aggregating Aggregators
The first step to providing a truly complete picture for a transaction; each aggregator uses a different algorithm to find the optimal route for a transaction, so it makes sense to collect all of that data in one place.
Step 2: Query DEXs Directly
Aggregators don’t return data on all the tokens listed on the DEXs they query and they don’t query All DEXs either.
Many tokens are missed by Third-party services. So by taking the direct approach, ChainArQ becomes the only option for cross-chain transactions for many projects which are otherwise ignored by other services.
Step 3: Onboarding Multiple Bridges
Bridges are a vital component of the cross-chain swap mechanism because they provide liquidity on both sides of the transaction.
Step 4: Optimizing the trading route
This is done on multiple levels; splitting orders across different DEXs to obtain the best price for users and finding the most cost-effective route to lower Gas fees are both essential steps to maximize the value of users’ trades and minimizing potential losses.
Step 5: User-Friendly Interface
By offering a user-friendly interface, accessible to both experienced traders and newcomers, ChainArQ aims to simplify the complexities of DeFi and make it easier for users to participate in the ecosystem.
Step 6: Securing the Journey
Nobody wants to lose their money, that’s why ChainArQ applies various security modules that can serve as a “circuit breaker” in the event of a potential threat, thus protecting the user’s funds. Aside from that, risk mitigation strategies such as “Exact Value approval” when interacting with ChainArQ’s smart contracts means that users’ wallets are never exposed for more than the value of the transaction that they want to exchange. Additionally, every interaction with ChainArQ’s smart contracts are trustless, meaning that no one aside from the wallet owner can manually interfere with the transaction.
The Promise of ChainArQ: More than Just a Swap
With ChainArQ’s innovative Cross-Chain Aggregation tool, the DeFi landscape is set to be revolutionized. Gone are the days of struggling with scattered DeFi services and chain-specific limitations. ChainArQ envisions a future where DeFi enthusiasts can seamlessly access and manage their assets across various chains, all from one unified entry point. With a comprehensive view of liquidity pools and trading options, NFT Marketplaces and a unique cross-chain Launchpad in the works, ChainArQ empowers users to make informed decisions and unlocks the true potential of decentralized finance.
