Bridge

Liquid and Cross-Chain

🤔 Why Go Cross-Chain?

sdTOKENs

Liquid Lockers are available not only on the mainnet, but also on multiple chains, such as the MAV Locker.. Therefore, some sdTOKENs need to be available on multiple chains.

Wrappers

Wrappers like asdCRV from the concentrator or vsdcrv do not require being cross-chain. As boosted yield or boosted voting power are available simply by holding the token, making them cross-chain is a way to make it more accessible to anyone and to provide liquidity on sidechains.

SDT

As Liquid Lockers are cross-chain, so is the SDT, for the sake of incentives and liquidity provision.

⚙️ How?

To facilitate cross-chain availability of tokens, Stake DAO leverages the capabilities of CCIP (opens in a new tab) and LayerZero (opens in a new tab).

The core mechanism of both products is similar:

• Bridging from the native chain of the token to another chain means locking the native token on the native chain and minting a "copy" on the destination chain.
• Bridging from any chain to the native chain means the "copy" is burnt and the native token is unlocked.

Specifics

LayerZero requires the token to be an OFT (Omnichain Fungible Token) itself to work with the mechanism. However, it is possible to add an OFT Adapter to an existing token; in this case, the OFT logic is in the adapter. As with CCIP, it will need approval of the token to initiate a bridge.