Connecting Stablecoin Liquidity
Existing Problem
While it's clear that DeFi is headed towards a multi-chain paradigm, the infrastructure supporting cross-chain transactions is lacking. In the absence of quick and efficient means of moving assets across chains, users must rely on existing, inefficient methods to connect their capital.
The process of bridging stablecoins is a daunting task. Whether it's clunky UI, swapping wrapped assets with low liquidity or trusting a centralized bridge… we understand your concerns - we've experienced the confusion and hassle ourselves. Born out of necessity, our team built Swim to directly address the common pain points of bridging:
Usability
Swim prioritizes the user experience with its simple-to-use UI that includes additional features aimed at keeping seasoned DeFi users happy. Our priority remains to cater to both the complete web3 novice as well as the expert, by constantly improving and taking on feedback from users.
One of our unique features is our bridge status overview. Not only can you view your past transactions on Swim, but also track the flow of the assets that you’re currently swapping, and utilize a retry/resume function for paused or incomplete transactions.
With our upcoming relayer, the Propeller, users will be able to swap native assets with just a single click, making the experience even easier.
Security
Exploits of high-profile cross-chain platforms highlight the difficulty and importance of building highly secure and reliable cross-chain technologies that users can trust.
We chose to build on Wormhole, which we consider the most decentralized and secure option out there. It consists of 19 sets of distributed nodes - the ‘Guardians’, which are a subset of Solana Guardians, to monitor and sign transactions.
On top of this, we have been audited by Kudelski security (audit report available here). We are also constantly engaged in audits as we push out new code. We recently launched a bug bounty program powered by Immunefi, details of which are available here.
Wrapped assets and capital efficiency
The process of wrapping and unwrapping assets is an unenjoyable user experience and drains liquidity. By preserving the native asset form, we help users utilize their dollars most efficiently and remove the need to hold or swap to/from wrapped assets.
Additionally, we allow users to swap and provide liquidity in a single multi-chain hexapool of concentrated liquidity between six native stablecoins. In doing so, you maximize liquidity between those six stablecoins, allowing you to eliminate liquidity fragmentation and provide users with native assets on their target chain.
Non EVM-compatible chains
Swim isn’t just limited to EVM-compatible chains. As we continue to breakdown the barriers between siloed ecosystems, offering users access to liquidity on both EVM-supported & non-supported chains remains a top priority. In fact, our signature hexapool is built on Solana, and down the line we are looking at Aptos and Sui as we build for the community’s needs.
Our native approach
We are a native stablecoin AMM style bridge, providing and enabling liquidity between chains. In the future, we will also enable cross-chain smart contract calls and will be integrating with other protocols through our multichain SDK.
Our signature hexapool design complements our metapools, which allow Swim to facilitate trading between new tokens and an existing pool. For example, we added a Polygon $USDC metapool, which allows users to swap between Polygon $USDC and any token in our hexapool or metapool world. Currently, we have 8 metapools and counting!
Metapool constituents can be easily swapped with our hexapool LP token, $swimUSD, which can further be used within Swim. This means that existing LP token holders are not affected by the new metapool if they don’t add liquidity to it.
What about the future?
Currently, to provide a secure bridging process, we require a user’s manual wallet approvals and transactions. However, with the Propeller, we will improve usability without sacrificing the other two pillars of our protocol: decentralization and liquidity.
Swim will send smart contract calls, allowing our protocol to move away from user-prompted transactions. The Propeller will process these smart contract calls, initially encoded from the source chain, invoked by the engine, eventually reaching the target chain. This is all prompted by a single user interaction with one smart contract transaction, with the Propeller cranking through subsequent transactions without input from the user.
We will also have integrations coming with our SDK, which will allow protocols to plug into Swim and its native multichain stablecoin liquidity. This will allow traditionally single-chain protocols to go multichain with ease.
We truly believe that the possibilities are endless with Swim!
Keep up with Swim’s latest developments and announcements: