OpenSwap Troll Talks: Chapter #6 — Core Concept of Single Asset Vaults

If you have been following our previous Troll Talks publications on Medium, earlier this month, we’ve looked at how the Open Interchain Protocol concept came about as well as why we’d think that our unique interchain bridging mechanism can be a comfortable remedy to some of the core problems DeFi users of current cross-chain bridges are facing.

For those who’ve been reading up on our materials, we’ve identified that current bridges are bang average interim solutions. The commonly used ‘Lock & Mint Synthetics’ and ‘Cross-Chain Liquidity Pair Pool’ models, while they are moderately acceptable for serving the purposes of moving digital assets across chains, both of these conventional methods do bring along irritating pain points such as slow speed, high costs, involving the use of synthetics, and can be a complex process when implemented.

One of the main components to making OpenSwap’s Open Interchain Protocol different from other conventional bridges and a uniquely efficient cross-chain bridging method is the use of Single Asset Vaults.

Understanding Single Asset Vaults

Understanding the key concept of ‘Single Asset Vaults’ is important to know why the Open Interchain Protocol is better than the rest. These are vault smart contracts that exist on chains that are supported by OpenSwap. They will provide liquidity providers the opportunity to put their digital assets to work without worrying about impermanent loss. Think of these vaults as 1:1 representatives of the bridge tokens on the different chains, and the protocol will only release a corresponding amount of the target chain’s version of the token once and only when the source chain’s tokens are confirmed to be deposited.

An important feature of these smart contracts is the dynamic multi-sig feature that governs release of the funds. Funds can only be transferred out of a vault if it is signed by multiplicity of Bridge Trolls (node validators).

There will be a set of rules governing how transactions are signed by Bridge Trolls, and it will be based on the size of a transaction. Essentially, the number of Bridge Trolls (signers) required will be proportional to the swap transaction size ensuring that bonded $OSWAP stakes are sufficient to cover swap transactions, this will mitigate any malicious behaviours.

We can also anticipate that the majority of the bridge vaults will be dedicated for stablecoins such as the likes of USDT, DAI, BUSD, or core native chain tokens such as BNB or ETH. Do remember that OpenSwap can be and will be extended to other EVM compatible chains in the near future, so we are always on the lookout for getting more Bridge Trolls involved!

Becoming a Bridge Troll

As indicated in previous Troll Talks episodes, community members are welcome to become a Bridge Troll and help us validate transactions on Open Interchain Protocol. Users can become a Bridge Troll through obtaining a Bridge Troll NFT by staking OSWAP tokens at our Troll Camp! We will give more information on Troll Camp very soon.

For those who don’t want to miss out and want to be ready when Troll Camp opens, get your OSWAP token today! $OSWAP is currently available on PancakeSwap, OpenSwap, ImpossibleFinance, and MEXC Exchange. We recommend users to go to OpenSwap’s DEX Aggregator to find the best on-chain swap options.

Learn more about OpenSwap

We encourage community members to partake in community discussions to help better shape OSWAP Tokenomics and help generate more utility ideas. Users may express their ideas to core team members through joining the OpenSwap telegram group: https://t.me/openswapdex

More information about OSWAP tokens will be shared with the community as the project continues to develop. In the meanwhile, please feel free to follow us on Twitter to receive the latest news and updates from OpenSwap.

Website: https://www.openswap.xyz/

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Swap: https://www.openswap.xyz/#/swap

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Medium: https://openswapdex.medium.com/

Coinmarketcap: https://coinmarketcap.com/currencies/openswap/

Youtube: https://www.youtube.com/channel/UCwy3G03-u7Ke4yvB_-ehC1Q