Cross-chain DEXes enable trading between different blockchains. As DeFi becomes multi-chain, understanding bridges and cross-chain protocols is essential.
The Multi-Chain Reality
- Liquidity fragmented across chains
- Users have assets on multiple networks
- Bridges connect isolated ecosystems
Bridge Types
- Lock-and-Mint — Lock on source, mint on destination
- Burn-and-Mint — Burn on source, mint on destination
- Liquidity Networks — Pre-funded pools on each chain
- Messaging Protocols — Generic cross-chain communication
Cross-Chain DEX Solutions
- THORChain — Native asset swaps across chains
- Chainflip — Just-in-time liquidity model
- Squid/Axelar — Cross-chain swap routing
- LayerZero — Messaging for cross-chain apps
Key Takeaways
- Multi-chain requires cross-chain solutions
- Bridges have different security trade-offs
- Bridge hacks have caused billions in losses
- Research bridge security before large transfers