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What is cross-chain
A cross-chain protocol acts as a blockchain bridge, enabling interoperability between unrelated blockchain ecosystems. To elaborate, consider a scenario where you want to access DeFi services, but only have Bitcoin in your wallet. Unfortunately, most DeFi services are built on Ethereum, making Bitcoin unusable. You would have to use an exchange to convert your Bitcoin to ERC20, which is expensive, inconvenient, and time-consuming, ultimately leaving you reliant on the exchange. On the other hand, a blockchain bridge eliminates the need for a third-party intermediary such as an exchange platform, allowing you to use your Bitcoin directly within the Ethereum ecosystem. This grants greater control to individuals navigating the world of cryptocurrency and contributes to the decentralization of the entire ecosystem.
What is a new Bolide cross-chain feature
As we’ve mentioned before, cross-chain deposits allow users to transfer assets between different blockchains using bridges like Stargate, a decentralized cross-chain bridge. Currently, USDT can be transferred between chains in the Bolide.fi app, but more assets will be added over time.
What is Stargate
Stargate is a LayerZero-based cross-chain bridge protocol that facilitates the transfer of native assets between various blockchain networks. The conventional bridge protocols rely on an intermediate or wrapped token to transfer native assets from one chain to another, which is an inefficient and cumbersome approach. However, Stargate overcomes this limitation by allowing users to transfer native tokens directly to non-native chains without the need for wrapped tokens. The protocol utilizes unified liquidity pools shared between chains, ensuring instant guaranteed finality and delivering a seamless and single transaction process for cross-chain bridging. In short, Stargate’s objective is to streamline the cross-chain bridging process and provide a hassle-free user experience.
How it works
The main blockchain that Bolide operates on is Binance Smart Chain. If you have USDT on Ethereum, you will need to either swap it for BEP20 tokens or use one of the cross-chain protocols. However, we’ve partnered with Stargate to ensure you do not need to leave the Bolide dApp to carry out these transactions. You can seamlessly perform them within the dApp interface!
The deposit process remains the same. We have added a “network” field where users can switch between Polygon, Ethereum, and Binance Chain to make a deposit. However, please note that to make a claim or withdraw, users need to switch to the Binance Chain network. These transactions will require Binance Coin (BNB) to pay for gas fees.
Please head to our Docs for a step-by-step guide.
Why is it important for users
We are committed to providing the most user-friendly DeFi product in the market, with our primary focus being to enhance user experience and minimize friction during fund transfers. We are continuously striving to streamline this process, and cross-chain functionality is a significant step towards making asset management easier, safer, and less time-consuming.
Why is it important for the protocol
With this new feature and improved user experience, we anticipate an increase in the number of users who will use Bolide as their number one stop-shop for all things passive income in Defi. Our aim is to make it easier to move liquidity to the protocol, which we expect to have a positive impact on Bolide’s Total Value Locked (TVL).
