Occam.fi
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Occam.fi

Introducing the Occam.fi Ethereum to Cardano Bridge

The battle for on-chain liquidity is intensifying. Across every blockchain network that has introduced smart contract and multi-asset capabilities, the race is on to bring users, decentralised applications, and, today, probably foremost, decentralised finance (DeFi) to their chain.

Instrumental to this ensuing war for liquidity are cross-chain bridges, pieces of smart contract logic that work toward the interchain wrapping of assets — effectively tethering an asset on one blockchain to the value of a matching asset deployed on the source blockchain. Examples of cross-chain bridges are many and varied among existing protocols, the most prominent of them being wBTC, an Ethereum token tethered to the value of BTC, being a shared initiative between BitGo, Republic protocol, and Kyber network.

These bridges normally exist in one of two possible paradigms — either centralised or through trustless bridges. Trustless bridges rely on a game-theoretically coherent protocol design, whereas centralised bridges are naturally dependent upon the trust extended to the operator of the custodial and clearing system.

Regardless of the way they are built and designed, the key takeaway is that cross-chain bridges are integral to both the long-term prosperity of any multi-asset blockchain network; and they are critical to boosting the on-chain liquidity of a blockchain.

But why will cross-chain bridges be critical to building out Cardano’s early DeFi infrastructure, and what would such a bridge look like? Let’s find out.

Why Does Cardano Need a Cross-Chain Bridge?

Today Cardano is among the most promising blockchain networks in the space across a number of dimensions — including its potential capacity for hosting complex and expressive DeFi applications. Upon finally releasing its multi-asset and native token capabilities through the Mary hard fork, Cardano is now poised for massive inflows of capital. However, without having production-ready smart contract capabilities yet, there are still limitations to how much capital will remain on-chain in these early days.

This is where cross-chain bridges could become what Ouroboros is to consensus, the self-eating snake of DeFi on Cardano, an infinite loop of liquidity seamlessly transferring between Cardano and other blockchains. This liquidity could be instrumental in the early development of Cardano’s DeFi landscape — and we need to find ways to retain this liquidity within the ecosystem.

Occam.fi aims to become one of Cardano’s smart DeFi layers, and as such we are focusing on building out a set of components aimed at catalysing Cardano’s on-chain liquidity today. And, as you may have guessed, Occam.fi’s cross-chain liquidity bridge will be an integral part of our value proposition to the Cardano community — and we are ready to deliver this feature soon.

Our bridge architecture will use the centralised paradigm, using our exchange partners as a bridge between those OCC tokens issued through the ERC-20 standard — the standard upon which OCC will be initially issued — and their Cardano Native Token counterparts living on the Cardano blockchain. This design ensures that there are always exactly 100 million tokens (the entirety of OCC supply) existing cross-chain. While we’re certainly not the first to embrace the cross-chain bridge solution — preceded by solutions launched for EOS, USDT, and even Binance Chain — to the best of our knowledge we are the first to offer a production ready Cardano-to-Ethereum bridge.

Projects launching through OccamRazer will be able to make use of this cross-chain bridge, giving projects planning to launch on Cardano access to Ethereum user base and liquidity.

As we will soon explain through the release of our technical roadmap, today the OccamRazer codebase is running on the Ethereum Virtual Machine (EVM) powered by Solidity interfaces; and is audited to follow industry’s best practices by Swiss-based blockchain experts Scalable Solutions. As and when the relevant Cardano components become available, Occam.fi will migrate its infrastructure to Cardano. But there are already use cases we can deliver to Cardano today.

As we have discovered the OCC token is already planned to be cross-chain in nature by means of our release as both ERC-20 tokens and Cardano native tokens, and through our exchange partners. After demonstrating the robustness of the solution employed, we are ready to extend the Occam.fi Bridge offering to all the projects that are raising funds on OccamRazer.

What this means in simple terms is that liquidity and value can be seamlessly moved on to the Cardano blockchain and associated projects through collateralisation by Ethereum on-chain liquidity. This will be similar to how many centralised exchanges allow withdrawals of, say, Tether (USDT) on any of a list of chains Tether runs on. We hope this solution will generate liquidity and exposure within the huge Ethereum DeFi community, allowing funds to flow to projects on Cardano.

The Hunt for Full Decentralisation

Occam.fi also recognises that a centralised solution isn’t ideal in the future, not for a flourishing and fully decentralised ecosystem. We believe trustless bridges to be a superior solution we would be open to working with independent teams who are looking to build decentralised cross-chain liquidity bridges. If you’re a developer interested in exploring this further, contact us at Occam.fi.

Got questions? Let us know in the comments below! We are building, reiterating our approach, and learning every day. We are eager and interested to hear the thoughts of our community as we move forward.

Thank you for being a part of the Occam.fi community! We will soon be releasing more information about our project, including our team bios and what makes us tick. Please follow our channels below to keep up to date!

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