As the fast development of multi-chain networks including Ethereum, BSC, Polygon, Fantom, Avalaunch etc. on today’s blockchain technologies, more and more crypto holders have crypto assets on more than one blockchain. Therefore, the token transfer among different chains becomes an emergent demand. Traditionally the trader swaps one token to another token by using the particular blockchain, and this could be done via most AMM Dexes. However, more and more traders today are looking for cross-chain token transfer with ease of use.
For example, a trader might swap ETH (ERC20) to USDC (ERC20) easily via Ethereum-based DEX such as Uniswap or SushiSwap. However, it the trader wants to bring some of his assets into Fantom, Polygon etc. other than Ethereum, he will need a cross-chain DEX or a bridge. Although centralized exchange such as Binance, Huobi, OKEx might support some of their desired token withdrawl, there are still several problems that users might encounter. For instance, BINANCE Exchange supports the trade of FTM, the native token of Fantom network, and the withdrawl of FTM could be made via several types of network including Fantom Opera Mainnet. In other words, people can buy FTM token on Binance and withdraw it to their Fantom wallet.
However, token withdrawls are often temporary paused unexpectedly by Binance since everything is under its control, the characteristic of centralized exchange (CEX). It has already happened several times with FTM withdrawl during past few months, which made the users very confused.
As a result, many traders are likely to choose the other ways for cross-chain token transfer. The bridge is a commonly used tool that brings the particular token from one blockchain network to another. Normally the bridge supports the same token swap. For example, Avalaunche Bridge supports the specific token swap between Avalaunche and Ethereum Network. Binance Bridge supports the specific token swap between BSC and Ethereum Network, or alternatively, the token swap between BSC and another Network depending on the token’s property. Moreover, Multichain supports several blockchain networks for single token transfer.
Most bridges only support the same token swap from one blockchain network to another, and normally the supported tokens are limited. Luckily, the project developers are aware of the increasing demand of cross-chain token swap between different tokens. For example, swap ETH from Ethereum for Matic token on Polygon, which could be accomplished via a certain decentralized exchange. Zapper is a great dapp that integrates many fantastic features including the cross-chain asset transfer mentioned above. Another amazing project known as o3Swap is a cross-chain aggregation protocol that currently supports cross-chain stablecoins transfer and still under development. Multi-chain asset holders will be happy to see the breakthrough of cross-chain technologies on the go.
