Introducing Eddy Finance: Breaking Barriers and Connecting Chains

Eddy Finance
5 min readAug 14, 2023

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We’re thrilled to introduce Eddy Finance, a protocol on ZetaChain that lets you wave goodbye to wrapped assets and embrace a new era of cross-chain mobility with unparalleled security. In this blog, we’ll delve into the story behind Eddy Finance, its purpose, and the benefits it brings to the table. Join us as we explore how Eddy Finance simplifies the complexities of decentralized finance, making it effortless, accessible, and secure for users like you.

Imperfections in Cross-Chain Interoperability

In the world of DeFi, transferring value and messages between blockchains has proven to be a complex task. This has led to vulnerabilities and losses, with over $2.66 billion lost due to bridge hacks revealing the pressing need for a more robust and secure solution. [Source: DefiLlama]

The existing commonly used bridge mechanisms, such as lock + mint and burn + redeem, come with their own issues — ranging from custodial risks to trustless vulnerabilities that persist as long as the user holds the wrapped asset. The complexity further amplifies due to these vulnerabilities existing across multiple chains, from smart contracts to messaging layers, creating a web of possible attack surfaces.

Conventional solutions that deal with native assets also fall short in capital efficiency, as liquidity is fragmented across different pairs on various chains. Even unified liquidity pools face challenges due to varying blockchain speeds in contrast to each other, leading to transaction delays.

Additionally, relying on oracles and relayers for cross-chain communication introduces yet another attack surface and leads to higher costs owing to a constant need to sync states between blockchains. The overarching challenge is to make asset transfers between blockchains safer, faster, and more cost-effective.

That’s what we’re here to do at Eddy Finance.

Eddy Finance Joins Forces with ZetaChain: Multi-Chain Connection with OmniChain Smart Contracts

Eddy Finance partners with ZetaChain to tackle the imperfections head-on

Eddy Finance has partnered with ZetaChain to power the Eddy protocol with Omnichain Smart Contracts. Omnichain Smart Contracts allow complex logic and states to reside in a single, consolidated location. This eliminates the need to broadcast messages across various chains and sync states across numerous contracts, mitigating attack vulnerabilities and reducing gas fees. With a shared vision of transforming the DeFi landscape, Eddy Finance and ZetaChain’s partnership is ready to address these imperfections head-on.

Eddy Finance: Native Asset Transfers and Stableswap

Eddy Finance is a decentralized exchange (DEX) on ZetaChain designed to make it effortless to move assets across different blockchains, like BTC and EVM networks. By leveraging Eddy Finance’s multi-chain pools that aggregate native assets like ETH, BTC, and MATIC into a single pool, users can engage exclusively with native assets, mitigating the risks associated with wrapped assets.

Eddy Finance does more than just native asset transfers. It is the first cross-chain stableswap platform built on Omnichain Smart Contracts. This smart approach allows the creation of stablecoin multi-chain pools with unified liquidity.
For instance, Eddy Finance supports a stablecoin pool comprising USDC (Arbitrum), USDT (Polygon), and DAI (Ethereum), all seamlessly integrated within a single pool through Omnichain Smart Contracts.

Eddy Finance’s special algorithm ensures swaps with minimal risk and slippage. Instead of expensive message-passing, transferring assets on external chains only comes with basic transfer gas fees. This can save you a lot on gas costs.

How Eddy Finance works

Even if you’re not moving between chains, you can still benefit from Eddy Finance’s incentivized liquidity pools called The Eddy Currents. By adding stablecoins or native assets, you can earn high yields. The great thing is that you’re not tied in — you can take your money out instantly and jump back in whenever you want. Keep an eye out for more details about our pools and a deep dive into the technicals of Eddy Finance in our upcoming blogs.

In our effort to create the best cross-chain experience, Eddy also abstracts away gas fees on the connected chains you are swapping between, so you can enjoy a seamless, one-step, and stress-free experience.

Empowering Bitcoin users | Opening the gate to the world of DeFi

Eddy Finance lets you trade your native Bitcoin directly with other assets without having to acquire a wrapped version or derivative, in a single transaction. This functionality opens the door for a vast community of Bitcoin holders to get involved, earn rewards, and trade their Bitcoin while seamlessly integrating it into the larger DeFi ecosystem.

Until now, Bitcoin holders often remained on the sidelines of the DeFi revolution due to the need for intermediary steps like wrapping Bitcoin before use. Eddy Finance changes the game by allowing direct interactions with native Bitcoin through BTC-supported non-custodial wallets. This means that a multitude of previously untapped Bitcoin users and their associated liquidity can now actively participate in the DeFi space, bringing a new wave of potential and innovation.

By enabling Bitcoin to interact seamlessly with other assets in decentralized finance, Eddy Finance sparks a shift towards greater inclusivity and accessibility. As a result, the DeFi landscape becomes richer, more diverse, and, ultimately, more resilient.

How can you use Eddy Finance today?

We are excited to open the doors of Eddy Finance to the public — your gateway to seamless blockchain connections, accessible through our newly launched website (https://eddy.finance/). Step into a world where we break the barriers and connect the chains.

Ready to Begin? Embark on your journey here: https://zealy.io/c/eddyfinance-3679/

We are equally delighted to announce that Eddy Finance will be live and accessible for testing, showcasing its Minimum Lovable Product. Jump right in and prepare to experience seamlessly traversing between BTC, ETH, MATIC, and BNB on the test net.

Follow these simple steps to prepare for our launch.

  1. Visit the official Eddy Finance website: While you’re there, register for the incentivized waitlist by clicking on “Get Early Access:
  2. Be prepared with your non-custodial wallets. Utilise XVerse or XDEFI wallet to connect your BTC with the world of EVM
  3. Acquire your Testnet tokens through the provided faucets.
    A. Get ZETA via ZetaChain faucet
    B. Getting Testnet tokens via ZetaChain’s Discord Faucet
  4. Prepare for the launch of Athens-3 Testnet in the upcoming week and select the desired amount and chains for transferring value, then proceed with the transaction.
  5. Enjoy as the assets move fluidly across different blockchains on the Athens-3 Testnet

As you immerse yourself in the Eddy Finance experience, anticipate more developments in our upcoming releases.

About Eddy Finance

Eddy Finance is a DEX and a Stableswap on ZetaChain, enabling effortless cross-chain asset transfers between blockchains like BTC and EVM networks. By pooling native assets and stablecoins like ETH, BTC, and USDC into a unified pool, Eddy Finance facilitates seamless interaction with native assets, reducing the risks of wrapped assets. Consolidating logic via Omnichain Smart Contract, Eddy Finance ensures the best swap prices with minimum slippage and gas fees for users.

Follow Eddy Finance on Twitter @eddy_protocol and join the conversation on Discord. Get rewarded by taking part in the fun quests on our Zealy.

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Eddy Finance
Eddy Finance

Written by Eddy Finance

Step into the Omnichain world with Eddy Finance: https://eddy.finance/

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