The problem of fragmentation, caused by upscaling L1 nets, using L2 solutions has occurred to be the main anxiety reason of investors and traders, who entered the crypto market in last couple years. The possibilities and advantages a chain’s L2 services give, cannot be exploited in other chains, making the whole system of blockchain divided into non-interactive sections a bit too much. The solution to that problem is cross-chains and the Router Protocol, which we will talk about today should probably be the most innovative one.
Why don’t you just use a bridge?
Router isn’t just a net-to-net bridge, that contains a single block, transferring information and liquidity between two systems. The protocol is a set of nodes and modules, that altogether create a multifunctional net, connecting an unlimited amount of chains into one big structure. To convert and transfer assets Router uses stablecoins and a special Pathfinder algorithm, that searches the best ways of teleportation.
Pathfinder and not the one from Apex game
Pathfinder divides assets into three categories:
Reserve assets
The ones that have their liquidity held by the protocol. Stable (USDC, USDT, etc.) and non-stable (MATIC, BNB, AVAX, FTM, ETH, ONE, CRO, etc.)
Mintable assets
The ones, protocol uses for its maintenance (ROUTE, DFYN, etc.)
Arbitrary assets
The Ones that don’t fall under any of the following categories (SHIB, CRV, LINK, AAVE, etc.)
Depending on what type of asset is being transferred Router might choose one of 7 scenarios with 14 paths overall to find the most suitable one. You can take a closer look at every path here.
Even more
Another service Router offers is CrossTalk - a special library for allowing smart-contracts to interact with each other. The library will include the following protocols:
Universal Processor
Compares cross-chain smart-contracts and processes cross-chain requests.
Bridge contract
Creates an order book for the incoming cross-chain transactions and executes them afterwards.
Validator module
Inspects the ability of the transaction execution for the arrival net.
All these modules with the Pathfinder protocol make for a very fast and reliable bridge that can also be used by limitless nets - hope to see more tech in the Router protocol soon because the project looks incredibly promising.
