Cross-Chain Interoperability

With the integration of Celer’s cBridge solution, in addition to having the ability to transfer XMT tokens from their native layer (Ethereum) to another network, there is now the ability to transfer data and information between them.

Directly quoting the Celer Network documentation:

Instead of deploying multiple isolated copies of smart contracts on different blockchains, developers can now build inter-chain-native dApps with efficient liquidity utilization, coherent application logic, and shared states.

Going straight to the point: this solution now allows us to manage a certain amount of tokens on a specific network (blockchain) and be able to have the information (linked to the same address) on another network. So, for example, one could hold a position of a certain amount of XMT tokens on Ethereum and be able to have that voting power recognized on the same address, but by smart contracts executed on the Polygon network or BNB chain.

DAO governance protocols that allow unified governance mechanisms without requiring governance tokens to be moved across different chains.

This new possibility opens the door to a series of solutions that would bring new functions and a better cost management (operating on the “cheaper” blockchain), but keeping its security high, given that the tokens would remain on the more secure blockchain.

This step is part of a broader plan that I will be able to explain better in a future proposal discussion that will concern the evolution of the DAO itself.

Stay tuned, but for now I would be pleased to read your feedbacks, implementable ideas, or any doubts about this upgrade that the MetalSwap ecosystem has already made, integrating Celer cBridge.

5 Likes

I think having the ability to transfer data from one chain to another is a crucial technological aspect.

There are two important factors for a DAO: having the best possible security and therefore holding the governance token on the safest chain, and at the same time having the ability to participate frequently in votes and decisions.
Currently, I believe Ethereum is the best chain to hold XMT governance tokens, but the high gas costs at the moment do not encourage frequent voting. Inter-chain Message could provide great help to an evolution of the DAO that could achieve both objectives.

In this case, it will be important to understand how reliable this technology is.

2 Likes

It looks like a tool with a lot of potential. In practice, the user does not have to bridge the funds, but can directly participate in the governance on the blockchain with lower costs. So does the buyback generated by swaps always remain on the Ethereum network?

The Celer framework offers these new solutions, still the dapp has to be upgraded to use new functionalities, and they should be discussed, proposed and voted by the token holders, the DAO.
Good question regarding the buybacks, it has to be well defined. Keeping in mind that Chainlink automation will be implemented firstly on Ethereum.

1 Like