Allbridge, a cross-chain bridge, has added support for the Polygon blockchain to its platform, enabling users to transfer between Polygon and other supported networks.
What is Allbridge Core?
Allbridge Core is a cross-chain protocol for swapping stablecoins. The swap platform ensures smooth transactions and cross-chain swaps between stables without the need for the wrapped assets. The magic behind it was designing native liquidity pools for the individual tokens on the blockchain.
Allbridge’s most recent addition of the Polygon marks its 5th network for cross-chain native stablecoin transfers. It expands it beyond the already existing Ethereum, Solana, Tron and BNB Chain.
Polygon, Solana, Tron, BNB Chain, and Ethereum are all blockchain platforms that allow for the creation and execution of decentralized applications (dApps).
Similarities between them include:
- All five blockchains support the creation and deployment of smart contracts, which are self-executing contracts with the terms of the agreement written directly into code.
- Every network has its own native cryptocurrency that is used to pay for transaction fees and other costs associated with the network. Platform features a wide range of decentralized applications, enabling swaps, borrowing, lending, and more!
However, there are also some notable differences between these platforms. For example:
- Polygon focuses on providing scalability solutions for Ethereum, allowing for faster and cheaper transactions on the Ethereum network.
- Ethereum is a more established platform with a larger developer community and a wider range of dApps and decentralized finance (DeFi) projects built on it.
- While Solana’s high-performance blockchain aims to provide faster transaction speeds and lower costs than other networks.
As you can see, the different platforms have their own unique sets of advantages over the others. This makes for a good combination of scalability and flexibility when building versatile applications.
Polygon integration enables Allbridge users to access its expansive ecosystem of projects. This also offers a seamless transfer of liquidity between Polygon and other blockchains. In addition, it could make it easier for projects on Polygon to interact with other blockchains, and for users to access a wider range of decentralized applications and services.
The recent addition of Polygon to Allbridge features two new liquidity pools comprising USDT and USDC. Both Polygon and Solana are an even better blend considering that Allbridge Core allows for native swaps of USDC stablecoin between the two networks.
Allbridge Core liquidity pools:
Rewards to liquidity providers are determined by the fees collected by the bridge, which in turn depend on transaction volumes. This means that the pool APRs are dynamic, rather than guaranteed, and serve as the reflection of a demand for the particular asset.
Another unique feature to the Allbridge Core is its liquidity rebalancing. Every time a native token is exchanged to a virtual one, the price of the native token is decreased. This function incentivizes users to swap the bridged assets back to the chain of origin and rebalances the liquidity pools.
Cross-chain privacy
Future updates to Allbridge Core will focus on enabling private cross-chain transfers. This would help provide an additional level of security to cross-chain stablecoin swaps and allow to conceal some confidential details on-chain, like project’s treasuries, or personal addresses.
Summarizing, here are some of the key advantages of Allbridge Core as a platform:
- Native swaps: Allbridge Core brings native stablecoin bridging experience
- Convenient: Cross-chain swaps on Allbridge Core are performed in a single click
- Unique liquidity provision: The platform allows for single-token liquidity provision
- Versatility: Allbridge Core supports multiple messaging protocols
- Private: The platform will introduce the possibility of private cross-chain transfers