The Journey of Cross-Chain Bridges and Interoperability

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ELK is native everywhere — consider what this means for a decentralised token; how many tokens like this are there?

What’s in a name?

Since we launched, the ElkNet blockchain bridge (including the Bifrost smart contract for fans of Norse mythology and Marvel movies — another fun name) has effortlessly moved the ELK token to over 20 different blockchains. And ELK is native to each one of these blockchains, no wrapping, just native everywhere.

No ELK has ever been lost. Ever. We have not been exploited or made the headlines. Which is both good and bad. We are definitely under the radar.

And because the ElkNet only moves ELK (for now), the premise of our technology is lost on the “WEN WEN WEN” mentality of “crypto-chads” — get rich, get hacked, get out and everyone else can get rekt. Security, probity and longevity matter more to Elk.

A future where cross-chain is safe and easy is too hard to see and too far away.

Who even cares? Less than 5% of the world use Web3!

Web3/blockchain/crypto is full of idealists, innovators, idiots and criminals. Idealists drive the vision, innovators make it possible, we all make idiotic mistakes sometimes, and criminals prey on everyone. Avarice is rife and leads to further idiocy which leads to black swan events becoming commonplace. It’s a tough game!

As an idealistic idiot with occasional innovative thoughts, I’ve chosen a challenging path to walk, and I’m understandably frightened of the criminal minority ruining it for the majority that includes my friends, colleagues and, honestly, everybody else! This is because a change is underway. and it’s unstoppable. So, as Web3 pioneers we have a responsibility to make it safer. We have to be the deputies, the sheriffs and the marshalls in the Web3 Wild West.

What is Elk doing to make this future a reality?

Well, we aren’t compromising our core values of safety, simplicity and excellence for starters. There is no need to name the culprits of blockchain bridging disasters, or custodial exchanges ruining lives — they are the well-known leading criminals of Web3.

Elk is making infrastructure that is invisible to users. dApps built on ElkNet will use a decentralised technology that meets their specific requirements. Developers can easily make what they need, not struggle with the fragmentation and limitations of current leading bridges (which one will fail next I wonder?)

Furthermore, since this is Web3, individuals can participate in collective ownership. No massive companies scouring money from their customers, Web3 is an opportunity for the equitable distribution of wealth.

• Staking ELK secures ElkNet validators
• ELK pairs provide concentrated liquidity to the ElkDex
• ELK governance rights
• Users pay validator transaction fees
• Projects (DAOs) earn fees from bridging
• Any token can be move through the ElkNet — native everywhere
• And there is so much more, starting here

We aren’t going anywhere but forwards

The post Lodge Letter 70: Which blockchain bridge is right for dApps and developers? appeared first on Elk.

How are new ElkNet chains determined?

The community most certainly has a say in such matters. You may have noticed polls in the Elk dApp UI and our social channels where we enquire as to which blockchain ElkNet should go to next. Further to these questions are the needs of existing partners and where they’d like to see ElkNet lay further foundations. And we do feel we are here to help our ecosystem partners and users alike.

Let’s not forget that as soon as a chain is selected for inclusion in the ElkNet, the ElkDex will also deploy on the new chain; instantly creating an asset marketplace for ELK on a new chain. Elkbrings users a Dex, a bridge, LP farming, and staking opportunities. Builders can secure token liquidity using our self-managed farm creation FaaS tool, who’ll then be ready for easy cross-chain swaps to 20 OTHER chains. Then 25, then 30…you get the picture. We haven’t even mentioned the exciting stuff yet (keep reading).

Does this mean patience and hope is the only way to see ElkNet enter “your” ecosystem? No, it is not! However, in the ever-changing Web3 landscape where blockchains spring up (and sometimes sink away) all the time, taking a gamble on every single chain that appears on the horizon is not possible and not sensible. At Elk, we will certainly try to be everywhere, and we enjoy growing our ElkNet, but ecosystem builders can help too. We’ll bring our toys, for all topermissionlessly play with, and blockchains host the users, the partner projects – those seeking opportunity, liquidity, and flexibility to move from chain to chain.

Is a new blockchain coming? Or more than one?

Following conversations with several ecosystems, Elk is delighted to be expanding the ElkNet to embrace half a dozen new blockchains in the near future. Stay up to date with announcements for where we’re going to appear next by following our social media and community channels. We’re excited to join these new outposts of the ElkNet and help write their stories in crypto, blockchain and Web3, and are looking forward to sharing our new developments with these new blockchains as we all keep building towards inclusivity and interoperability.

As we continue Elk’s cross-chain journey through the spaces between blockchains, we find ourselves positioned such that if a chain is looking for ElkNet to land on their shores, then providing a grant, liquidity, marketing and business development support is a surprisingly effective way to bring Elk on board. We have plenty to offer and wish to strive for excellence alongside willing and capable partners.

Elk Finance coming to your blockchain?

Elk arrives on-chain…

When Elk Finance appears on a blockchain the following features become available:

ElkDex

• LP pairings.
• Liquidity farming.
• Single staking ($ELK).

ElkNet

• Transfer $ELK to/from any ElkNet-connected blockchain.
• No $ELK has even been lost on a cross-chain transfer.
• Ever.

Farm-as-a-Service

• Create liquidity for your project by creating your own permissionless token farms. Read more here: https://elk.finance/farm-as-a-service/ and even more here: https://docs.elk.finance/for-developers/farming-as-a-service-faas
• Live on BitTorrent Chain.
• Avalanche, Fantom and Polygon coming next for FaaS.
• Let us know if you have an urgent need for farms on our other chains so we can prioritize deployment to help your project grow.

Social media and community channel support

• We’re friendly and welcoming
• We support ecosystem projects
• We help where we can

That’s the story right now…

CCTP, cross-chain swaps, Uni v3 and what else?

The next phase for Elk is to take the above, which works (and works well), then add a bit more compatibility, improve the user experience, and make it available to more blockchains. Then we can give more tools for builders to play with ElkNet themselves. You want a bridge? They want a bridge? Everyone wants a bridge! And they’re all allowed to build on ElkNet to make their bridge work.

The existing features and tools will still be available but we will sprinkle the following into the mix too:

ElkDex – Uni v3 Dex

• Customisable LP position NFTs.
• More efficient concentrated v3 liquidity farming.

ElkNet 

• Cross-chain swaps – Choose the token you send to ElkNet and receive any token on a destination chain, again of your choosing.
• Cross-chain swaps powered by $ELK via ElkNet or USDC via Circle’s CCTP.
• No lost $ELK for cross-chain transfers/swaps.
• Ever. (It’s crazy not to stress this point!)

Farm-as-a-Service

• All current self-managed FaaS benefits, but with v3 liquidity.
• More efficient.
• More profitable.
• All in your control.

Social media and community channel support

• We will stay friendly and be here for our chain-agnostic community.

Web3 is Web, we are one tribe, we are Elk: Any chain, any time, anywhere.

Website | App | Docs | Twitter | Telegram | Discord | LinkedIn | Reddit | TikTok | DefiLlama

The post Blockchain expansion: New chains ready to explode onto ElkNet soon  appeared first on Elk.

In the vast universe of blockchain and cryptocurrency, cross-chain bridges play a significant role, acting as intermediaries that enable seamless cryptocurrency transactions across different blockchain networks. With the growing demand for interoperability in the decentralized world, the need for efficient cross-chain bridge services has become more prevalent.

What is a Cross-Chain Bridge?

A cross-chain bridge allows the exchange of information, cryptocurrency, or non-fungible tokens (NFTs) from one blockchain network to another, thereby facilitating the flow of data and tokens across what would otherwise be isolated data sets on different blockchains​¹​.

In contrast to traditional fiat currency exchange systems, cross-chain bridges provide a more efficient and less costly way to exchange different cryptocurrencies. Instead of converting cryptocurrency into fiat currency, which often involves fees and time, a cross-chain bridge allows users to directly exchange one cryptocurrency for another.

How Cross-Chain Bridges Work

Cross-chain bridges employ several mechanisms to facilitate transfers between different blockchain networks. One common approach is the use of wrapped tokens, where the value of one token from a specific blockchain network is encapsulated inside another token. For instance, Wrapped Bitcoin (WBTC) is a Bitcoin token wrapped with an ERC-20 Ethereum smart contract, enabling Bitcoin to be used in Ethereum-based blockchains​¹​.

Another method involves a liquidity pool, where a cross-chain bridge provider holds an inventory of various coins that can be exchanged for one another.

Popular Cross-Chain Bridges

Celer cBridge

The Celer cBridge uses the Celer State Guardian Network to enable liquidity across different blockchains. It supports numerous blockchain networks such as Ethereum, Astar Network, BNB Chain, Avalanche, Polygon, Arbitrum, and more. It also supports a wide range of cryptocurrency tokens like Tether, USD Coin, Ethereum, and others​¹​.

However, when discussing cross-chain bridges, it’s crucial to highlight an emerging player that’s demonstrating a superior approach to cross-chain interoperability: Elk.

Elk Finance’s ElkNet

Elk Finance’s ElkNet is a cross-chain infrastructure framework that allows for the movement of assets and data between decentralized blockchains. It provides self-custodial bridging for projects and users. The heart of the ElkNet solution is a novel reservoir system that eliminates fragmentation and token availability limitations that can hinder cross-chain transfers. Tokens deployed on the ElkNet immediately become native on supported chains​²​.

ElkNet not only offers services for individuals but also for businesses. Individuals can move their assets between blockchains securely, fast, and efficiently. Elk also offers liquidity mining where ELK tokens are distributed through liquidity farming on ElkDEX and impermanent loss protection is provided for *most* ELK pairs​²​.

For businesses, ElkNet’s Bridging-as-a-Service allows protocols to create self-managed bridges with all the benefits and security of ElkNet. Additionally, Elk has “Farming-as-a-Service” where projects can deploy their own liquidity farms. A noteworthy feature of Elk Finance is its insurance fund where 10 million ELK tokens are held in reserve in case of an attack or exploit, further enhancing its security​²​.

Elk Finance’s mission is to build the most powerful and convenient interoperability network for Web3, with a vision of making Web3 accessible to all and integrated within the future internet. We place a high emphasis on safety and simplicity for the end-user.​²​.

Multichain

Multichain, known for its bridge technology that facilitates asset transfers across different blockchain networks, experienced operational disruptions due to unforeseen issues and the unanticipated absence of its CEO, Zhaojun. The issues affected the cross-chain service of several chains and stirred rumors within the cryptocurrency community. The incident resulted in a substantial decline in the value of MULTi, Multichain’s native token. Despite the concerns, the Fantom Foundation assured that the situation had no impact on its assets and bridging​¹​.

Security Considerations

While cross-chain bridges offer several benefits, they also come with security risks. Cyber threats and attacks have targeted cross-chain bridges, leading to substantial losses. Therefore, it’s vital to choose secure and reputable cross-chain bridge services to ensure the safety of your assets​¹​.

ElkNet and Cross-Chain Bridges

Elk Finance is a notable player in the realm of cross-chain bridges. It utilizes the innovative ElkNet technology to offer a secure and efficient cross-chain bridging service. Through ElkNet, Elk Finance moves assets and data between decentralized blockchains and provides self-custodial bridging for projects and users​²​.

Elk Finance not only facilitates the transfer of assets across different blockchains but also offers additional services like liquidity mining and impermanent loss protection, making it an appealing platform for both individuals and businesses​²​.

Conclusion

Cross-chain bridges are undoubtedly crucial in the world of blockchain, enhancing the interoperability of different networks and making cryptocurrency transactions more efficient. Elk Finance, with its innovative ElkNet technology, stands as a testament to the advantages of cross-chain bridges, offering users a secure, efficient, and comprehensive DeFi platform. Try Elk Finance’s cross-chain bridge service today and experience seamless cryptocurrency transactions like never before.

The post Understanding Cross-Chain Bridges: Your Key to Seamless Cryptocurrency Transactions appeared first on Elk.

What is Blockchain Congestion?

Blockchain congestion occurs when there is an overload of transactions on a blockchain network, leading to slower processing times and higher transaction fees. As the number of transactions increases, so does the demand for network resources, causing delays in transaction confirmations and slower network performance.

Polygon Network Status

The Polygon network has experienced significant growth in recent months, with an uptick in daily transaction counts. While this growth is a positive sign for the network, it can also lead to congestion during peak usage times.

Understanding the Cause of Congestion on the Polygon Network

Gas is the fee paid by users to execute transactions on the Polygon network. As the network becomes more congested, gas prices increase, making it more expensive to execute transactions. During periods of congestion, users can experience delays in transaction confirmations and higher gas fees.

How to Mitigate the Impact of Congestion on Your Transactions

To minimize the impact of congestion on your transactions, consider the following tips:

• Monitor the gas prices: Keep an eye on the prices and choose to execute your transactions when the prices are lower.
• Set a higher gas price: Setting a higher gas price than the current market price can help ensure that your transaction is processed faster.
• Use a faster wallet: Use a wallet that supports fast transaction processing to speed up your transactions.
• Wait it out: If the network is experiencing high congestion, it might be best to wait until the network clears up before executing your transaction.

ElkNet Cross-Chain Bridge

The ElkNet cross-chain bridge is a solution that enables users to transfer assets between different blockchain networks. This feature is useful for users who want to take advantage of the benefits of these various networks. 

Benefits of Using the ElkNet Cross-Chain Bridge

Interoperability: The ElkNet cross-chain bridge enables users to transfer assets between different blockchain networks, providing more flexibility and interoperability.

Low Transaction Fees: The ElkNet bridge offers lower transaction fees compared to other bridges, making it more affordable to transfer assets using the cross-chain bridge.

Faster Transaction Times: The ElkNet cross-chain bridge provides faster transaction times compared to other blockchain networks, enabling faster asset transfers using ElkNet.

Conclusion

In conclusion, blockchain congestion can have a significant impact on transaction times and fees. By monitoring gas prices, or using a faster wallet. 

Visit Elk Finance to learn more about our DeFi solutions on the Polygon network.

The post Polygon Blockchain Congestion appeared first on Elk.

The fact is, for most of our early users, Elk is a bridge project. People tend to discover Elk after hearing about a new Ethereum challenger or a token launch on an unfamiliar chain. Once they find us, they hopefully learn what many already know, which is that our cross-chain value transfer protocol (yes, OK, the bridge) is one of the most convenient ways to get funds from Chain A to Chain B.

In this way, Elk performs its core bridging function well, bringing crucial infrastructure to the rapidly growing realm of decentralized finance. But here’s the thing: bridges are boring. Not only that, they are some of the worst investments in the history of the world. From Ancient Rome to the San Francisco Bay, bridges have played a vital role in the progress of civilization, but at the end of the day, all those feats of engineering and upkeep typically end up benefiting what lies on either side.

In this article, I will briefly lay out the case for why the Elk network should be seen less as a bridge and more as a multi-functional DeFi gateway. I will start by describing ElkNet in its present form and the utility of the ELK token, before moving on to explain two forthcoming upgrades that demonstrate Elk’s broad vision for the future of multi-chain DeFi. These are:

• CHFT, a multi-chain native stablecoin
• Proxy tokens, cross-chain virtual assets

The Elk blockchain, with ElkNet at the center, is designed to overcome the current limitations of existing bridges and blockchain interoperability more generally. In short, the three main problems are:

• The Bridge Fragmentation Problem
• The Exit Liquidity Problem
• The Interchain Messaging Problem

Let’s take a look at each one in order…

The Bridge Fragmentation Problem

As new chains and projects scramble to capture market share from existing networks, proprietary bridging solutions have given rise to dozens of individually wrapped bridge tokens based on the same underlying asset. This in turn has resulted in widespread liquidity fragmentation, since two different wrapped tokens based on identical assets become incompatible once they arrive at their destination. This creates confusion and stunts growth by producing thin liquidity pools with artificially high price impacts for traders.

The Exit Liquidity Problem

Conventional bridges operate through a simple lock-and-release mechanism: to bridge USDC from Chain A to Chain B, a user initiates a transfer by locking USDC tokens into a smart contract on Chain A, which then tells a contract on Chain B to release the same number of USDC tokens. The fundamental problem with this model, however, is that there needs to be enough tokens already locked on the destination chain (Chain B) to complete the transfer. If there are not enough tokens — which is a fairly common occurrence — the transfer fails, and the bridge becomes unusable.

There are ways to minimize the exit liquidity problem, such as bootstrapping a bridge with exit liquidity furnished by the protocol or restricting the amount of tokens that can be transferred. As we’ve seen, however, liquidity can still dry up during mass migration events, which tend to be exactly when bridges are in highest demand.

The Interchain Messaging Problem

This one is less of a problem for DeFi as it currently exists, but it is central to realizing the vision of a multi-chain future. The radical promise of programmable cryptocurrencies like ERC-20 tokens is that they carry data parcels, which transforms them into stores of data as well as value. This opens up a whole universe of potential applications that form the basis of what we now refer to as web3.

The problem, however, is that relaying information that exists on one chain to another chain is currently a slow and highly inefficient process. Current solutions are often a patchwork of systems involving subgraphs, oracles, proprietary APIs, etc. that primarily reside outside of the blockchain. Today, there is no simple solution to relay information between chains, yet such cross-chain messaging is key for creating truly interoperable blockchain applications.

The Elk network provides elegant solutions to overcome each of these problems, while simultaneously unlocking new use cases that leverage ElkNet’s unique cross-chain architecture.

ElkNet & The ELK Token

ELK is Elk’s native settlement currency. Unlike conventional bridges, ELK is the only token that moves across ElkNet, which connects the Elk network to every network Elk supports (as of this writing: Avalanche, Polygon, Fantom, Huobi ECO, xDai, and Binance Smart Chain).

All liquidity pools on our multi-chain exchange, ElkDex (app.elk.finance), are bonded to ELK. The structural advantage of this approach is that traders are able to transfer funds between chains by swapping their tokens for ELK, migrating over the bridge, and exchanging them at their destination for tokens of their choosing. Cross-chain swaps automate this process, allowing users to trade arbitrary tokens, which are seamlessly exchanged for ELK under the hood.

This model has multiple advantages: since there are no wrappers or bridge tokens involved, there is no fragmentation introduced. Users can of course swap their tokens for an existing bridge token, but ElkNet does not add to the fragmentation problem by introducing new tokens. This is why Elk is best described as a “value transfer” protocol: it is designed to bridge value, not tokens (other than, of course, ELK).

ElkNet also solves the exit liquidity problem. Since ELK moves freely over the Elk network, which functions as a storehouse for ELK, exit liquidity is by definition never an issue. ELK is always be transferred in a perfect 1:1 ratio; One ELK goes in, one ELK comes out.

ElkNet also provides an original solution to the interchain messaging problem, since it has a data relayer function built into it. In the future, developers will be able to leverage ElkNet to make calls for information stored on multiple chains, transforming the landscape for cross-chain interoperability and paving the way for genuine multi-chain dApps and smart contracts. In this way, you can think of ElkNet as a kind of DeFi switchboard, automatically routing calls between multiple networks on demand.

One theoretical drawback of using ELK as a medium for value transfers is that price impact (slippage) for transfers can be high if there is not sufficient liquidity to facilitate the conversion to ELK tokens during a cross-chain swap. This is the main tradeoff for solving the exit liquidity problem, and it is the reason that pairs on ElkDex are always bonded to ELK.

Ensuring that pools have depth across all chains is therefore key to making the Elk blockchain function. ElkNet is also able to interface with other network AMMs, applying a “smart order routing” algorithm to find the most efficient trade path for the tokens on either end. Using DEX aggregation, users will be able to swap any token they wish with minimal price impact.

Since ELK is not a pegged token, its price can deviate across networks, resulting in potential price disparities during cross-chain transfers. As many in our community have already discovered, however, this “problem” also presents an arbitrage opportunity, such that bridging can actually result in net profit in some cases. As Elk grows, price arbitrage will surely become more sophisticated, ensuring relative price parity across all chains.

Of course, many traders would prefer to avoid any price differential as they moving between chains. With this in mind, we are preparing to release a stablecoin designed to interact with ElkNet.

CHFT, A Multi-chain Native Stablecoin

CHFT will be the first cross-chain stablecoin based on an innovative “gyroscopic” design, which allows it to be minted natively on any network that Elk supports. Like the ELK token, CHFT will carry the same token address across all chains compatible with the Ethereum VM (EVM) and unique addresses on non-EVM chains, thereby reducing fragmentation and bypassing the need for custom wrappers.

The price of CHFT will be pegged to the Swiss Franc (CHF), which is widely regarded as one the world’s most stable currencies. Users will be able to mint CHFT by using various whitelisted tokens as collateral. CHFT tokens will be overcollateralized, meaning that users are required to deposit tokens whose value exceeds the amount of CHFT minted based on a collateral factor assigned to the token being used as collateral.

This design follows the most common method for issuing stablecoins collateralized with cryptocurrency. Once CHFT has been minted, however, users can be freely move to any chain to any chain via ElkNet at a stable 1:1 ratio, where it can be traded, pooled, or farmed. CHFT can subsequently be redeemed for collateral locked on any chain. In the unlikely event that there is no collateral available for redemption on a specified chain, users can simply move CHFT to another chain where collateral is available. Since CHFT is overcollateralized, there is little risk of liquidation, and there is guaranteed to be exit liquidity available.

Proxy Tokens: Cross-chain Virtual Assets

While ElkNet addresses the problem of bridge fragmentation, the very existence of bridge tokens demonstrates a broad-based desire among DeFi users to trade, provision liquidity, and farm for yield using assets that are currently segmented across dozens of networks. Our proxy token concept offers a practical solution to the bridge fragmentation problem by decoupling a token from its underlying asset, liberating it to move among networks in a similar fashion as ELK or CHFT.

In this case, users will be able to mint proxy tokens by locking the asset they wish to convert into a proxy token along with a small amount of ELK. Unlike CHFT, proxy tokens are issued in a perfect 1:1 ratio, and it can be redeemed for the underlying asset at any point.

Proxy tokens offer a solution to the exit liquidity problem since they are converted into a virtual asset on their chain of origin (similar to a wrapped token), meaning that no exit liquidity is required on the destination chain. Unlike a conventional wrapped token, however, proxy tokens can move across ElkNet onto any network, where they can be traded or used to farm with that network’s native tokens.

The possibilities of proxy tokens are endless, and doubtless the community will discover their uses in time. One clear application will be to bring popular tokens, including ones that exist on non-EVM chains, onto the networks that Elk supports. Another exciting potential involves multi-chain dApps, where the supply for a token can exist on a single chain, and proxies can be used to deploy on multiple chains without fragmenting supply.

Elk plans to release an SDK for developers in the near future, which combined with proxy tokens will open up all sorts of possibilities for cross-chain applications. Since ElkNet serves as an on-demand messaging switchboard, the potential for novel cross-chain interoperable smart contracts and applications truly has no bounds.

Ultimately, these are just a few of the potential use cases for the Elk network. We’ve only started to imagine all of the ways that each will be used, and we are excited to see what novel concepts the community invents for them. Together, they demonstrate how Elk is much more than a mere bridge; it is a true DeFi gateway.

The post Beyond The Bridge: Exploring Use Cases for the Elk Network appeared first on Elk.