One of the major ways through which blockchain-based projects stand the test of time is via innovation. A project’s ability to identify ways to serve its users better will go a long way to ensure the longevity of such a project in the blockchain space. Over the years, Cryption Network has engaged in the launch of new products and has also entered into a number of partnerships.
Today, the Cryption Network team is launching a new product designed to improve their services to their users better. Cryption has launched Cross-Chain Farming on September 9, 2021. It is the first of its kind in the decentralized finance ecosystem.
What is Cross-Chain Farming For PolyDEX?
In a nutshell, Cross-Chain Farming is a technique that allows users to engage in DeFi farming across two different blockchain networks simultaneously. For example, a user deposits the Ethereum mainnet and then uses the deposited ETH to generate liquidity pool tokens on PolyDEX on the Polygon blockchain network. With Just a single click of a button, users get enrolled in the farm of their choosing.
For cross-chain farming to work, it depends on two types of Polygon-Ethereum bridges known as:
- POS Token Bridge and
- State Sync mechanism and FxPortals as a Data bridge.
The POS token bridge comprises a set of contracts that helps to port assets from the root chain (Ethereum mainnet) to the child chain (The Polygon network). The token contracts on both root and child chains need to be mapped to use the POS bridge. You can also read more about the POS Bridge. The State Sync Mechanism and FxPortals are designed to help users read the data from the Ethereum mainnet on the Polygon child chain. It also requires the mapping of both the root and child chains, respectively.
The Mode of Operation of Cross-Chain Farming
There are different steps involved in the execution of Cross-Chain Farming, and each of these steps must be followed to the latter for it to be successful. These essential steps include the following:
- You will have to deposit ETH on the Ethereum mainnet in a contract, ensuring that you specify the farm you wish to enroll in.
- The smart contract will process all the information you have provided and then prepares the Cross-Chain Farming metadata.
- Once this is done, the POS Token Bridge will be triggered to move the ETH over to the Polygon child chain. The ETH will be received on the Cross-Chain Farming Intermediator contract.
- The Intermediator contract will then trigger the FxPortals to transfer the metadata from Ethereum to Polygon. Also, the metadata will be received on the Cross-Chain Farming Intermediator contract.
- The Polygon validators will process the State Sync event, and after that, both ETH and metadata are moved from the Ethereum mainnet to the Polygon chain.
- Here, the Intermediator contract will decode the metadata and then trigger another smart contract on Polygon. This smart contract converts ETH tokens needed to add liquidity in the corresponding pair to generate liquidity pool tokens.
- After the LP tokens have been received, the PolyDEX core farming contract will be triggered to deposit liquidity pool (LP) tokens for you.
PolyDEX is one of the major products of Cryption Network, and it is a layer 2 (L2) swap exchange. It is an automated money maker (AMM) decentralized finance (DeFi) exchange. PolyDEX is designed with a special yield farming concept known as elastic yield farming. The elastic yield farming is adopted to help the founding team incentivize liquidity on the exchange. PolyDEX is also a feeless exchange with a 2-second blocktime. It serves as the central contract where all the other products of Cryption Network will be integrated.