Bridgeless Cross-Chain Swaps
All Hashflow trades are fully protected from both slippage and MEV exploits whether the trade happens locally on one chain or across chains.
No matter where users initiate a trade, they can receive their assets on any destination, without losing any value.
Hashflow uses DeFi-native RFQs to fetch quotes from market makers who are responsible for managing liquidity in the pools. Market makers are required to cryptographically sign quotes that remain unchanged for the duration of the trade. This ensures that the price is guaranteed and cannot be front-run or sandwich attacked. It also protects traders against slippage if there is significant price movement between the time it takes to validate the transaction on the source chain and relay the payload on to the destination chain.
The steps involved in the lifecycle of an example cross-chain swap are detailed as follows:
- 1.Trader requests a quote to sell
10 ETHon Ethereum (source chain) and buy
20 AVAXon the Avalanche (destination chain)
- 2.Market maker provides a signed quote to the trader
- 3.Trader submits the transaction on Ethereum with the signed quote as the payload
- 4.The liquidity pool smart contract on the source chain performs security checks, transfers funds from trader's wallet into the pool, sends the payload, and calls the gateway smart contract on the source chain
- 5.Once the transaction on the source chain is successful, the gateway smart contract triggers an event
- 6.The validators then use the event to validate the transaction and submit the proof along with the payload to the gateway endpoint on the destination chain
- 7.The relayers then submit the payload to the destination chain and transfer AVAX to the trader’s wallet on the destination chain
As detailed, the above steps do not rely on external bridges or require users to escrow their assets on the source chain to mint a bridged asset on the destination chain. Users can swap any asset natively by leveraging signature-based pricing and RFQs.