Adding axl-wrapped token liquidity to Osmosis
Ethereum tokens are now available on Osmosis DEX, including wETH and wBTC. Different wrapped tokens may be listed, but with Axelar in the role of canonical bridge provider, incentives are allocated toward AXL-wrapped token pairs so this guide will focus on them.
Author’s note: This is intended as general/technical information to obtain and/or move assets from chain A to chain B. Each user’s unique situation will ultimately determine the best path to take for this purpose.
Getting Started
Set up your wallets for the applicable networks and tokens
You will need both Keplr and Metamask wallet Chrome browser extensions with active addresses and all relevant networks connected [other wallet apps may work, but these are the most well-documented and universally compatible]
For Keplr, the only action you may need to take is to add Evmos chain using their official web UI. Click ‘connect wallet’ on the top-right corner, approve the popup and you’re done
Metamask is slightly more involved. You’ll need to add each network you want to bridge tokens to and from manually. If you are new to Metamask you may want to see the supplemental article, Configuring Metamask for Osmosis users.
Bridging Assets
Using the Satellite Bridge UI
- You can access the bridge UI by simply hitting deposit/withdraw for any applicable tokens on the Assets tab of Osmosis DEX
- Connect wallet apps using the familiar button on the top-right of the page
- Note there is no field to enter an ‘amount’, whatever you send to the deposit address is the amount and the listed bridge fee is deducted from this amount. The bridge fee is also the minimum transfer amount — don’t send the minimum transfer amount
- The bridge UI only allows selecting compatible tokens. If you are purchasing the tokens on an exchange, make note of the full token name and to which network it can be sent or withdrawn to. Always verify the correct token before sending from your wallet as well
- The bridge generates a one-time use address for each transfer. Do not use this same address again!
All transfers will follow the same general flow —
Asset Transfer Workflow in real-time —
During this step you can manually send funds to the Deposit address by copying from there, or use the convenient button to have the wallet app do the work.
This final window will indicate when the transfer has completed — check your wallet to confirm.
Sending native (ERC-20)tokens from your personal wallet or CEX
Following the workflow model above, depositing the funds to your one-time deposit address can be done from either your personal non-custodial wallet, or through an exchange withdrawal. Note: some exchanges require a whitelisted address and may not be compatible
The direct path from Ethereum network using native assets is the obvious method. It has the benefit of being very simple and involves no swap fees but transaction fees can be large, and at times the network can be congested.
Tokens can be obtained through a DEX like Uniswap or on CEX (may vary by region). When purchasing and withdrawing from a CEX, make sure you are withdrawing native assets (ERC-20) to Ethereum network only.
Swap or transfer tokens using other EVM networks
Axelar supports multiple EVM networks, including Avalanche, Polygon, Fantom and Evmos. Thanks to this, the tokens we want can be bridged through many different routes. Benefits to this could be lower transaction fees, increased liquidity across larger or multiple pools for less slippage when swapping, or quicker transfer times. The downside is that it adds extra steps to the process, can become very complex and you will often be subject to swap fees as you trade one wrap-variant for another to jump between certain chains.
The alternative routes for getting these tokens to Osmosis chain is a more advanced and likely frustrating procedure that newer users might not want to attempt. I suggest reading through to the end before attempting. [Cont’d in next article — keep reading]
Special thanks and credit for image editing goes out to my OSL colleague Arc
[Materials used or referenced]
