Open Interchain Protocol
The Open Interchain protocol is introduced as a solution that offers more efficient inter-blockchain swapping of chain-native digital assets through the usage of single-asset vaults and decentralized mechanisms. It is a single-asset cross chain bridge.
Typical crosschain bridging approaches that are being experimented with are “Lock & Mint Synthetic” and “Crosschain Liquidity Pair Pool Model”. By far the easiest to implement is the centralized version of the “Lock & Mint” where native tokens are given to a centralized custodian who in turn mints a synthetic version of the token on a target blockchain. The decentralized version requires the usage of decentralized custodians that are properly incentivized to behave appropriately. The majority of conventional crosschain bridges are of the “Lock & Mint” variety, the difference mostly lies on the different way in achieving true decentralization and the approach of key security.
The crosschain liquidity pool model involves liquidity providers stake pairs consisting of a native token and platform token into pools, and the platform routes swaps leveraging the common platform token to facilitate crosschain swaps. In this approach, swappers are able to receive native tokens on target chain instead of synthetics. These conventional crosschain bridging approaches are moderately acceptable but face issues such as being slow in speed, involve high costs, complexity, and the proliferation of synthetics of the same underlying asset. With Open Interchain Protocol, we ofer more efficient crosschain swapping of chain-native digital assets through the usage of single-asset vaults and decentralized mechanisms.