EYWA Token Bridge Design and Objectives

Today we will take an in-depth look at one of the main EYWA tools — EYWA Token Bridge: what it is, how it is designed and what tasks it solves. After reading the article, share your opinion in the comments so we know how well you understand this product!

Design and objectives of EYWA Token Bridge in the EYWA ecosystem

Today there are many DEXs that enable transactions within the same network quite quickly and securely. Difficulties arise when a user needs to transfer tokens from one network to another. For this operation, it is necessary to use bridges, which are characterized by a low security level.

To give you an example, let’s look at the biggest hack in the history of cryptocurrencies. On March 29, 2022,?The Ronin bridge was attacked by a hacker?who then withdrew 173,600 ETH and 25.5 million USDC — at the time of the hack, the stolen assets were worth $610 million.

The case of The Ronin bridge is an example of hacking through a vulnerability in the consensus mechanics. This bridge connected the network of the P2E project Axie Infinity with the Ethereum blockchain, and the attack on it was a serious blow to the project. The team had to seek additional funding and recover the stolen assets out of their own pockets. Such an event entailed a significant slowdown in the growth of new users (by 45%), as well as the outflow of those who had been with the project for a long time.

To avoid such situations, EYWA developers have created the?EYWA Cross-chain Data Protocol (EYWA CDP). The EYWA CDP will use the Roll-DPoS consensus mechanics, which greatly increases the network’s ability to withstand various attacks. All EYWA tools are based on the EYWA CDP, which guarantees high decentralization and network security. Today we will look at one of these tools —?EYWA Token Bridge.

What is EYWA Token Bridge?

EYWA Token Bridge is a mechanism that enables the transfer of assets between different EYWA ecosystem blockchains in a convenient, decentralized, and secure way.

EYWA Token Bridge Design and Working Principles

The EYWA Token Bridge consists of Portal and Synthesis smart contracts located in each of the supported blockchains. As mentioned above, the EYWA Cross-chain Data Protocol (CDP) is used to validate and transfer the data from one network to another.

Synthetic tokens (s-tokens) are another important part of the EYWA Token Bridge for moving assets between blockchains. S-tokens are created every time someone makes a cross-chain transaction of a coin. For a deeper understanding, let’s look at a transaction example made through the EYWA Token Bridge.

Transaction execution example:

1. A user sends a transaction to the EYWA Token Bridge. The original X(A) token is locked in the Portal smart contract of blockchain A.
2. The transaction creates an event in the Bridge smart contract, after which the event is tracked and validated by the EYWA Oracle Network.
3. EYWA oracles validate incoming transactions and perform cross-chain calls of smart contracts in the target blockchain.
4. The transaction of the user calls the Synthesis smart contract in blockchain B, which creates a synthetic token sX(A). The locked token X(A) in the blockchain A acts as a collateral for the synthetic token sX(A).

Note: A user can make a reverse conversion at any time and retrieve the original asset Xa.

Transaction history

Transferring tokens from one blockchain to another using the EYWA Token Bridge is a complex and multi-step cross-chain operation. In order for the user to understand what is happening, there is a convenient way to track the transaction process in real time.

Commission payment

For transactions through the EYWA Token Bridge, there will be different ways to pay commissions using the?Gasless?mode. Users will be able to choose from the three options:

• Payment with the native asset of the source network (ETH, BNB, AVAX…);
• Payment of the commission from the body of the transaction (with the token that the user transfers);
• Payment of the commission with EYWA tokens.

Security

Only those tokens whose smart contracts successfully complete audits by the EYWA team will be integrated into the EYWA Token Bridge. The audit will examine the characteristics of the project as well as the code of the smart contracts for the logic of moving and locking users’ tokens. This approach will significantly reduce all sorts of risks for transferring assets. Only those tokens whose code meets all the security rules will be integrated and available to move through the EYWA Token Bridge.

Conclusion

EYWA Token Bridge is an important element of our project. This mechanism is the most secure and user-friendly bridge. Such characteristics are achieved through the use of a decentralized oracle network. It is also worth noting that all liquidity transferred through the EYWA Token Bridge will not be custodial.

Share your opinion and ask your questions in the comments. We’ll continue to cover the details of the EYWA tools, as well as any updates on our project. To make sure you don’t miss anything and stay up-to-date, subscribe to the EYWA social networks!