Kibble Cross-Chain
Last updated
Last updated
Cross-chain swaps are a decentralized method of exchanging assets between different blockchain networks without relying on intermediaries. They enable seamless asset transfers across ecosystems, improving liquidity and accessibility in decentralized finance (DeFi). By using smart contracts and interoperability protocols and cross-chain swaps ensure secure and trustless transactions, allowing users to move funds efficiently between blockchains while maintaining control over their assets.
Cross-chain swaps can be categorized into the following types:
Custodial Centralized Exchange (CEX): This method involves using a centralized exchange to swap assets across different blockchains. However, it is custodial in nature, meaning the exchange controls your funds until you withdraw them. While convenient, it comes with risks such as account restrictions and withdrawal fees.
Atomic Swaps Based on Smart Contracts: These swaps use smart contracts, specifically Hash Time Lock Contracts (HTCLs), to let people trade tokens directly with each other across chains, without going through any middlemen. While they ensure atomic execution (either the trade completes fully or is canceled), they are dependent on smart contract security and are vulnerable to exploits.
Smart-Order-Routing Based: This type of cross-chain swap leverages a Smart-Order-Routing Engine to source liquidity from both centralized (CEX) and decentralized (DEX) exchanges. It allows users to trade across chains at optimal prices with lower fees.
Kibble falls under the Smart-Order-Routing-Based category, utilizing an advanced routing engine to provide efficient and cost-effective cross-chain swaps.
Kibble simplifies cross-chain token swaps by utilizing an advanced routing system. The swap process begins on the source blockchain, where users hold their tokens. At this stage, Kibble's routing engine analyzes various factors, such as liquidity availability, gas fees, and transaction speed, to determine the most efficient way to move assets across chains.
If the token has direct bridge support with sufficient liquidity, it is transferred immediately through the optimal cross-chain bridge.
If direct bridging is not feasible due to liquidity constraints or high transaction costs, an alternative route is selected.
If the bridge does not support the token directly or lacks liquidity, the routing engine swaps the token on a decentralized exchange (DEX) or DEX aggregator on the source blockchain.
The purpose of this step is to convert the token into a bridge-compatible asset, ensuring that the transfer can proceed efficiently.
The system prioritizes swaps that offer low slippage, minimal fees, and rapid execution.
Once the token is in the appropriate format, it is sent through one of the 24+ supported cross-chain bridges. Bridges act as interoperability layers that enable assets to move between different blockchain networks securely. The routing engine selects the most reliable bridge based on security, transaction speed, and cost-effectiveness.
Once the asset crosses the bridge and reaches the destination blockchain, the next step is to ensure that the user receives the desired token in their wallet.
If the received token matches the user's requested token, it is sent directly to their wallet.
If the received token is not the desired asset, Kibble’s routing engine automatically executes a swap on a DEX or DEX aggregator on the destination blockchain.
The system identifies the best trading pair with optimal liquidity to ensure low slippage and minimal fees.
After the final swap is completed, the correct token is delivered to the user’s wallet on the destination blockchain.
Kibble ensures that the entire process is completed efficiently, with a focus on reducing transaction costs and execution time.
Role of KIB Router
The KIB Router serves as the central hub, analyzing data from bridges, DEXs, and aggregators to select the best route for each swap.
It ensures that every transaction is executed quickly, securely, and at the lowest possible cost.
When a swap request is submitted, Kibble’s cutting-edge routing engine scans 100+ DEXs, 24+ bridges, and 50+ blockchains to identify the most efficient path. Designed to support multiple ecosystems, Kibble works seamlessly with protocols across EVMs, Bitcoin, Cosmos, Solana, Sei, Sui, Aptos, and more. By aggregating data from various protocols, Kibble identifies optimal routes among thousands of possibilities. The diagram illustrates Kibble's cross-chain swapping process, highlighting its seamless and efficient routing system.
