What's Behind the Cross-Chain Protocol Router Favored by Coinbase and Alameda?
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What's Behind the Cross-Chain Protocol Router Favored by Coinbase and Alameda?
How does Router Protocol address interoperability?
Navigating Web3 tides with focused insightsWritten by: The DeFi Investor
Translated by: TechFlow intern
The biggest problem in crypto is the lack of cross-chain interoperability—such as cross-chain lending, cross-chain governance, cross-chain staking, and cross-chain swapping. Let's explore how Router Protocol solves this issue.
Router is defined as a scalable bridge connecting blockchains, enabling interactions between them. The project’s vision is to make the entire process of transferring cross-chain liquidity possible within a single transaction.
Why do we need it?
Let’s say you have some ETH on Ethereum and want to stake it on Polygon. You would normally need to wrap your ETH into a cross-chain compatible version, bridge it over, then deposit it into your desired protocol. This process is too complex for average users.
This is where Router comes in. Router Protocol’s key products are the Router JS SDK and the CrossTalk Library. With the Router JS SDK, any project can directly implement cross-chain swaps in their applications (e.g., swapping native AVAX for native ETH).
Note: SDK = Software Development Kit
CrossTalk Library is their most exciting product. CrossTalk is a framework that any application can use to achieve seamless cross-chain interactions. With CrossTalk, developers can:
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Build cross-chain applications (e.g., a cross-chain lending market);
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Implement cross-chain governance in their DApps;
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Port single-chain DApps to multiple chains;
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Create stablecoins with cross-chain capabilities;
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Integrate cross-chain bridges into their applications;
Currently, while CrossTalk is still under development, any developer can already use it on testnets. They’ve built a tool that allows developers to implement cross-chain interactions in their applications.
39% of the total supply of the ROUTE token is currently in circulation. Recently, the team also extended the vesting period for most tokens. $ROUTE holders will:
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Have governance rights;
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Receive a portion of transaction fees;
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Get a 50% discount when paying transaction fees in $ROUTE;
The team recently launched Voyager, an application that enables cross-chain swaps using any token across eight different chains. As mentioned, this is built on the live CrossTalk Library and Router SDK.
Router’s partners include:
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Gods of Africa (an NFT collection), aiming to allow community members to mint NFTs across all chains;
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Trava.Finance, where Router will help Trava become the first cross-chain lending market;
Additionally, Router is backed by Coinbase Ventures and Alameda Research.
In the coming months, the team aims to:
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Integrate non-EVM chains: Solana and Algorand;
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Launch a dedicated chain to host Router’s infrastructure;
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Leverage IBC to integrate with the entire Cosmos ecosystem.
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The DeFi Investor
