Cross chain aggregator

Research and Discussion
1

1. Proposal Number & Name

PSP-IPΔXX: cross chain aggregator

2. Keywords

Sidechain, Inter-Blockchian communication , liquidity mining, farming, , Frontend, Smart Contracts, audit

3. Simple Summary

The idea is using best route for a swap even if is better to chose a swap on other Blockchain.

4. Context

if I want change a token A to 100_000 PSP on polygon I will create a huge price difference between the mainnet and polygon .So if the order is split between polygon and Ethereum I will earn more PSP and there is not difference on the PSP’s price.

there are some difficulty to make cross Blockchains swap

  • The Bridge time to swap a token from Blockchain A to Blockchain B
  • The communication cross Blockchain
  • gas fees estimation ?
  • ?

if Paraswap build 2 USDC pools one on Polygon and the other on the mainnet when I want make a trade, the router check 2 routes for ex :

  • Token A → PSP on Polygon
  • Token A → USDC on Polygon and USDC → PSP on Ethereum + ( Network fees + bridge fees )
    and choose the Best way
    with this methode the time to send value to the swap blockchain is controlling by Paraswap.

5. Goals

  • Brainstorm and discuss how to make a cross-chain aggregator
  • identifying technical problems

6. Means

→ improved the Paraswap Porduct

  • Bring more volume to ParaSwap
  • give users access to the Paraswap pools
  • Add an marketing point to Paraswap

7. Metrics

?

8. Forward-thinking considerations
?
9. Implementation Overview

  • cross chain communication contracts
  • token pool ( usdc? eth? WBTC ? PSP ? )
10 Likes
2

yep interesting idea , we have to thinking about cross-chain swap , suppose swap dai in blockchain x to eth in blockchain y with paraswap in one transaction and low gas, we can use something like " Celer IM " in celernetwork to facilitate this action , bringing creativity and absorbing more volume and user to the paraswap .

3 Likes
3

Mounir talked about a similar topic during the community call Δ4 (the cross chain swap mentionned by @TheRaconteur which is not exactly your topic but seems to me to involve the same actions).
It seems that the team has started to work on the topic with other dApp (Li.Fi & Connext) but that some technical difficulties (slippage during the transfer time, availability of tokens on all chains, etc) make it difficult to implement.

If the team manages to find solutions to these difficulties it would be really great and indeed it could increase even more the efficiency of ParaSwap.

On the other hand I agree with Mounir on the priority of the moment which is to increase the volume to allow us to use Chainlink (and unlock a lot of possibilities).

I may be wrong but this solution would impact more the efficiency of the protocol than its volume (even if both are linked!).

In conclusion, if the team manages to develop simple solutions I would clearly be for it, but rather in a second time.

8 Likes
4

In the meantime developing a bridge or maybe even a bridge aggregator, a lot of assets have balances accross different bridges, aggregating them for use while calculating for best price could be another revenue stream.

5 Likes
5

Yes. It’s similar to the bridge aggregator Mounir mentioned. LiFi and one other project is working on that. The good thing is Paraswap is actively involved. So, I think we should just wait for the team to finish the product development.

3 Likes
6

Great idea and a big opportunity. I’m tired of using / comparing 10 different bridges and to move funds around just to buy something on a specific chain.

Maybe a collaboration with Synapse might be relevant to explore especially since they have not launched their own mainnet yet. It’s the best bridge and can really handle volume.

Some other projects for cross chain bridge aggregators were mentioned. I also like movr since you can also directly see the swap. https://app.fund.movr.network/

4 Likes