TLDR: Mayan Swap integrates with Swim’s native asset liquidity pools to enable cross-chain stablecoin swaps on their platform
Intro to Mayan Swap
Mayan Swap is a cross-chain swap infrastructure that utilizes Wormhole’s message passing technology and Serum’s Orderbook to empower their single-click swap experience, which finds the best possible routes on Solana to facilitate cross-chain swaps. The Mayan team aims to enable protocols’ multichain efforts through focusing on the key pillars surrounding interoperability. Increasing user access to liquidity on new chains, while ensuring all issues around user experience are handled, remains a key focus for both Mayan & Swim.
To find out more about how Mayan leverages Serum’s decentralized on-chain central limit order book and Wormhole’s messaging technology please check out their post. You can also find a demo of Mayan Swap, released by Project Serum here.
Why did Mayan choose to integrate with Swim?
One answer: access to native stablecoins.
A quick look at the top trading pairs on leading DEXs highlights the key role that stablecoins play in the overall crypto ecosystem. As the Mayan team points out, it’s vital for any cross-chain exchange to support native stablecoins in order to gain mass adoption. To address the pressing need for access to stablecoin liquidity across the leading ecosystems in DeFi, Mayan looked to leverage all that Swim has to offer.
Through our integration, Mayan users will now be able to tap into Swim’s native asset reservoirs across our 8 supported chains and pursue their most lucrative opportunities without having to worry about a lack of multi-chain liquidity. Before Swim, the process of bridging stablecoins was a quite daunting task with critical issues around usability, security, capital inefficiencies and a lack of support for non EVM-compatible chains.
Let’s dive deeper into what the process of bridging stablecoins looks like and how the unique approach that Swim takes differs.
Imagine we have a native token X in the source chain, and we want to bridge this asset to our desired destination chain. This usually happens using a lockup/mint and burn/unlock mechanism. To move assets from one chain to another, we create a new token on the destination representing the original token on the original chain. The new token is called a “Wrapped” token.
When we send the native token X from our source chain, the bridge locks the X tokens in a contract on the source chain and mints the same amount of “Wrapped X” on the destination chain. And when we want to transfer back, the “Wrapped X” tokens will be burned by the bridge, and the original tokens will be released.
Wrapped tokens bridged by different bridges are not compatible with each other. To overcome the liquidity fragmentation problem caused by various bridges, DeFi protocols usually pick one wrapped version of the native token as the canonical token. In the case of Solana protocols, canonical versions of foreign tokens are the ones that are bridged by Wormhole’s Portal bridge (with only a few exceptions).
But some institutes prefer to issue tokens on each chain separately, like $USDT and $USDC, so none of the bridged versions of these stablecoins are canonical.
So wrapped $USDT and wrapped $USDC that are bridged by Wormhole have limited liquidity and therefore very limited usability on Solana.
This leaves us with a big problem: if you want to move your stablecoins from or to Solana, you will receive the wrapped version of $USDC and $USDT on the destination chain, which is a different token from the native version of these coins. This causes frustration and confusion for bridge users as they are unsure if they can use the bridged tokens on the destination chain.
Swim was born to address this issue - a cross-chain AMM that allows users to exchange native stablecoins across chains, with direct liquidity on 8 supported chains. Up until now, users on Mayan Swap were not able to swap their native stablecoins or receive native stable coins; instead, when exchanging stablecoins, they had to use the wrapped version of $USDC or $USDT from Solana and receive these tokens instead of native stablecoins. Given the limited usability of wrapped stablecoins, it was no surprise that the integration of native stablecoins was one of most requested features by the users that tested Mayan during the first beta phase. For this reason, the Mayan team found Swim to be the perfect partner to allow their users to seamlessly swap into native stablecoins on Solana!
How exactly does Mayan tap into Swim’s liquidity?
In simple words, Mayan’s goal is to tap into the rich liquidity within the Solana ecosystem and leverage it from other blockchains. The idea is to allow movement of tokens to Solana, make an efficient swap, and transfer them onto the destination chain with a single click.
Mayan started with the Serum order book, but the problem was that users from other chains couldn't use their stablecoins to swap into their desired tokens because wrapped stablecoins have little liquidity on Serum’s markets.
The solution was integrating Swim’s pools into Mayan’s Solana program, allowing the conversion of wrapped assets into native assets before being subsequently swapped using the Serum order book, all in a single click with minimal slippage.
The other direction is also similar. After moving the assets using Mayan’s EVM smart contract, Mayan’s Solana program first swaps token in the Serum order book to receive native stablecoins on Solana and then converts them to wrapped stablecoins again in a single transaction, allowing the user to receive the desired native stablecoins.
Swim’s Multichain SDK
Amongst the many exciting developments currently being worked on, our team is extremely excited for our Multichain SDK, which will significantly improve Swim’s ability to integrate with other leading protocols. As Swim develops and grows, so will its composability. With various integrations and use cases in the works, our team is very excited to see other protocols leveraging Swim to enable their multi-chain capabilities and capture more value. Whether it’s yield and price aggregators, lenders, wallets or other AMMs the potential for collaborations is truly endless.
Keep up with Swim’s latest developments and announcements: