Introducing Interchain Swaps: Cross-Chain Trading Made Easy
Interchain Swaps are a crucial feature of the Interport Finance Protocol, enabling users to perform cross-chain trades and swaps between top blockchains in a single transaction without the need to bridge assets. By integrating top DEXes and aggregators, Interport ensures that users always receive the best price without worrying about price volatility or extra commissions.
Here are some of the key benefits of Interchain swaps
Best Rate Swaps
Interport aggregates over 280 different sources, including liquidity pools, DEXes, price feeds, and even aggregators, to ensure that users get the best possible rate on the given network by considering price impacts and slippage. In the event of a lack of concentrated liquidity for a specific token, Interport will perform a partial swap on different sources and combine it into one transaction. We recommend that users always check opportunities across all networks where the token is traded, as they may obtain a better deal.
Single Swap Transactions
Interport has optimized the swap process to make it as simple as possible. Users do not need to confirm any transactions on the destination chain, and all fees, swap rates, and slippage are estimated in advance. This enables us to minimize the user’s required actions, as they will simply receive tokens on the desired chain. The logic and contracts are well-optimized to minimize fees, and the execution of the swap and transfer occurs within a single transaction.
Swaps on the Same Network
Interport offers more than just cross-chain swaps. It also allows users to perform regular swaps within the same network, just like any other DEX or aggregator. Using the best rate model, Interport sources liquidity from various providers to create the most efficient routing.
Additionally, Interport is integrated with multiple aggregators, including 1inch, KyberSwap, Openocean, Paraswap, and 0x. This integration makes Interport a meta DEX aggregator, which means it can quote the best price across multiple aggregators.
Slippage Optimization
Interport introduces a unique approach to slippage configurations and settings, minimizing slippage losses and delivering even better swap rates. Whenever a user chooses the slippage, it’s broken down into six different slippage zones for the destination chain. For example, 1% slippage would be broken down into 0.0%, 0.2%, 0.4%, 0.6%, 0.8%, and 1%. Depending on the actual slippage on the origin network, the cross-chain message will be formed with the actual amount of swapped assets from the original chain. Therefore, the slippage of 1% is a potential maximum slippage in this case, rather than an actual one. Actual slippage may be five times lower or even 0%.
How Interchain Swaps Work
Interport allows users to perform any kind of swap while finding the best rate for their transaction, with the following technologies at the core of the protocol:
Best Swap Route Calculation Algorithm — Algorithm finds the best price among more than 280 liquidity sources and aggregators.
Stablecoin Vault — provides the required liquidity in stablecoins for all supported chains and allows for high income on stablecoin lenders due to a high utilization rate.
Cross-Chain Messaging — allows for the transfer of cross-chain data and swap commands without physically carrying assets to the target chain.
The Interport protocol swaps assets on the source chain into stables and adds them to the Interport liquidity pool on the same chain. At the same time, a cross-chain call is made to the contract on the destination chain with parameters to execute. The contract on the destination chain then pulls stables from the Interport liquidity pool, performs swaps, and sends the desired tokens to the user on the desired chain.
In other words, Interport smart contracts swap assets for stablecoins in one chain and buys target assets on another. Everything happens in one single transaction at the best price available in the market.
With Interport, the universe of cross-chain swaps is now open for everyone to explore.
