cross-posted from: https://lemmy.ml/post/49912885
Hi,
I’d like to have your feedback on a project idea.
I want to build a fast and efficient trustless bridge protocol based on atomic swaps, offering a user experience similar to that of popular custodial bridges.
Unlike P2P DEXs such as BasicSwap, Bisq, and Haveno, users would trade against automated market makers. It would be an automated open-source program that anyone could self-host, which would automatically accept users’ swap requests for preconfigured pairs, in exchange for a small fee paid to the node operator.
The protocol would automatically aggregate liquidity from multiple market makers to fulfill large swaps, ensuring that liquidity isn’t fragmented even if it’s not deposited in a common pool.
The protocol would use adaptor signatures based atomic swaps when possible, for greater privacy and efficiency compared to HTLCs. I plan to initially support EVM chains (both native and ERC20), BTC and XMR.
The UI would be a simple web-based app, using RPC providers and light clients for blockchain interaction.
Unlike side-chain based bridges like THORChain, this architecture would not require the users or market makers to trust a separate validator set. Additionally, market makers would not be required to lock up all of their funds in smart contracts until they’re participating in a swap. In fact, they could even provide Just-in-Time liquidity and, the rest of the time, leave their funds deposited on another DeFi protocol such as AAVE, withdrawing only to fulfill a swap.
I hope this design could attract users and liquidity providers looking for a simpler and faster protocol than existing P2P DEXs, but with greater security than today’s leading bridges.
What do you think about it?
Could it reach a high level of adoption?
Would you use it to bridge, or provide liquidity yourself to this protocol?
Sounds novel. To gain any significant adoption it would need a proper install package where users do not need to run scrips or compile anything to use it, Just a simple flatpak or appimage. This is where BasicSwap failed, 99.9% of people could never even install it. It would also need the ability to run only using remote nodes.
Make sure to include support for BCH, it is growing in popularity fast as the real Bitcoin.
Yes you’re right. This is why the swap/bridge UI will simply be a website using remote RPC nodes, like most other dapps today. Only liquidity providing will require installing a program, because it will have to operate 24 hours a day and sign transactions itself on behalf of the user. But even then, we could imagine a network of decentralized liquidity providers based on MPC, to whom users could delegate their liquidity directly from the web app, without installing anything.
And yes once BTC is implemented, it would likely work natively with most of its forks such as BCH.
How would this compare to hyperliquid Dex? It sounds fairly similar?
No, hyperliquid is a separate chain with its own (rather small) validator set, much like THORChain, Chainflip, and most “decentralized” bridges today. This one would directly settle atomic swaps between 2 arbitrary chains. Not a single additional validator trusted except those of the target and the destination chain.
