While competition fosters innovation, the proliferation of different blockchains has resulted in the fragmentation and isolation of liquidity within each ecosystem. Early attempts to address this issue primarily involved bridges and wrapped assets. Unfortunately, these solutions were often vulnerable to hacks and exploits, and the value of wrapped assets was contingent on the security of the wrapper contract, rather than the underlying asset. Cross-chain swaps of native assets hold the promise of resolving liquidity fragmentation, but numerous technological challenges must be overcome to make them as seamless as same-chain swaps.
We were joined by Simon Harman, founder of Chainflip, to discuss multi-chain liquidity fragmentation and how Chainflip’s JIT AMM (Just in Time) aims to solve this, by providing cross-chain native swaps.
Topics covered in this episode:
- Simon’s background
- (Legacy) Bridging vs. Threshold Signature Scheme
- Chainflip’s Just in Time (JIT) AMM vs. Uniswap’s V3/X
- Providing liquidity on Chainflip
- Slippage and UX
- Deciding trading pairs
- Chainflip validators
- Validator stake auctions
- Governance
- Roadmap and bootstrapping liquidity
Episode links:
This episode is hosted by Felix Lutsch. Show notes and listening options: epicenter.tv/519
