Introducing LeoBridge: Permissionless Cross-Chain Swaps ERC20 -> BEP20

in LeoFinance3 years ago

Everything in DeFi moves at a ridiculously fast pace. People expect the world to change overnight, contracts to be written in minutes and APY to increase in seconds.

With Cub, we started a base layer platform that we could build upon for months and years to come. It grew faster than expected and the expectations for rapid releases mounted.

For the past 6 weeks, we've been building a number of massive updates for Cub and LeoFinance. Rather than tackle some small improvements and roll them out quickly, we decided to go after some of the biggest issues in the DeFi / BSC space.

LeoBridge is tackling the biggest issue with BSC right now: how to move capital from ETH to Binance Smart Chain.

To solve this, we built a backend and front-end designed for permissionless cross-chain swaps. Allowing anyone to swap any ERC20 token into any BEP20 token via smart contracts and the LEO token economy.

Along with LeoBridge, we've designed, built and are about to release Kingdoms - a feature that will allow Cub Finance users to pool assets in Kingdom vaults. Kingdom vault contracts then pool those assets on platforms like PancakeSwap, Venus, Ellipsis, etc. and then utilize the rewards of those platforms to reinvest in the base asset pair + earn harvestable CUB.

Coinciding with LeoBridge and Kingdoms, we built Cub Finance V2. A new UI that will handle all of these new features and allow us to build the next features to come.

LeoFinance is also getting a UI refresh with a new mobile version, Notifications feature and more. We'll save that for another post.

It's been a wild journey getting to this point and 6 weeks have felt like 6 months. We've got a lot of developments launching this week that have taken countless hours to create. As this week continues, you'll see us release all of the incredible new features we've designed, built and envisioned since this all started.

Rather than be any other BSC yield clone, we want to build things that are unique and solve massive problems in the space. CUB is a long-term project and most people look at these things through a short-term lens. Stay tuned for massive developments this week and the announcement of our roadmap of new CUB developments that are yet to come 🦁


Introducing LeoBridge - Permissionless Cross-Chain Swaps

Throughout the process of building and launching CUB on the Binance Smart Chain, we realized that one of the most demanded apps is a permissionless asset bridge from ETH to BSC.

As of now, there are few ways to bridge ERC20 assets to BEP20 assets. A lot of dev activity and capital has migrated to the Binance Smart Chain. This is not to say that ETH is any less valuable, only that BSC provides a much more user and developer-friendly playground for DeFi applications that require a significant number of transactions (i.e. the Cub Finance DeFi app).

Permissionless Cross-Chain Swaps

We're excited to finally launch LeoBridge - our solution to permissionless cross-chain token swaps. LeoBridge will launch in a multi-phase process that coincides with swap caps as liquidity and usage deepens.

LeoBridge UI

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Getting LeoBridge to the form you see today took several iterations both on the frontend and backend. The original idea was to integrate a simple swap UI into the existing Cub Finance app but that idea was scrapped mid development.

After going back to the drawing board a few times, the Uniswap UI was chosen and forked to create the UI you see today. LeoBridge is now a standalone application, although inherently tied to the Cub Finance platform through menu links, branding and swap fees.

As we move into LeoBridge Phase 2 and beyond, you'll see this UI change drastically to handle more blockchain asset conversions while maintaining a clean and simple UX.

How it Works

Tri-Token Economy

LeoFinance has a unique tokenomic structure. We have 3 tokens that represent LEO:

  • Native LEO (Hive Blockchain)
  • Wrapped LEO (Ethereum Blockchain)
  • BEP20 LEO (Binance Smart Chain)

Wraps can be performed instantaneously for minimal fees across these 3 versions of LEO. This allows our users to do some interesting things like participate in ETH-based applications and seamlessly unwrap assets onto the Hive blockchain and then rewrap LEO onto the Binance Smart Chain to participate in Cub Finance or other BSC dApps.

Utilizing this tri-token economy, LeoBridge allows users to swap any ERC20 token into any BEP20 token using smart contracts that interact with wLEO (ERC20) -> LEO (Hive) -> bLEO (BEP20).

LeoBridge offers a seamless way to convert ERC20 assets into BEP20 assets. It's the most unique cross-chain bridge setup we've seen.

  1. Users simply enter an ERC20 input on the LeoBridge UI
  2. Enter a BEP20 output
  3. BSC receiving address

The UI shows approximate send / receive amounts after slippage and swap fees are calculated.

Like any other DeFi app, a token approval TX is required before any swaps can occur for a specific ERC20 asset. Once approved, the UI allows the user to swap that token into any desired BEP20 output.

Once the user clicks swap, they're prompted to send their ERC20 asset. From there, LeoBridge smart contracts handle the rest until it delivers the BEP20 asset to the user's wallet.

On the backend, LeoBridge follows a process that looks like this:

ERC20 Input -> wLEO -> LEO -> bLEO -> BEP20 Output

From the User's perspective, this is a simple swap page like any other AMM. On the backend, LeoBridge is handling the swap by:

  • Taking the ERC20 Input
  • Swapping it for wLEO
  • Unwrapping wLEO into native LEO
  • Rewrapping LEO into bLEO
  • Swapping bLEO for the chosen BEP20 Output

Fees and Burn Revenue

LeoBridge will calculate slippage / fees for this cross-chain swap. The Binance Smart Chain side of this mechanism is much cheaper relative to the Ethereum side of the swap mechanism. Depending on the time of day, gas fees on Ethereum can be relatively expensive.

LeoBridge doesn't side step these gas fees. Instead, it offers a way to seamlessly get assets from ERC20 to BEP20. For many users, this may be the last ETH gas fee they ever pay as moving assets to BSC and remaining there for the forseeable future makes the most sense.

Outside of slippage and gas fees, LeoBridge takes a 0.25% swap fee. This swap fee is sent to the Cub treasury and 100% of the fee is utilized to buy/burn CUB and bLEO using the same structure as Cub Finance vault revenue.

  • 80% of the swap fee burns CUB
  • 20% of the swap fee burns bLEO

Swap Caps

At launch, we've enabled a $3,000 swap cap. We will regularly raise the cap to allow for larger and larger swaps as the bridge matures and wLEO and bLEO gain more liquidity pool depth.

LeoBridge is an incredibly long-term project. Our intention is to service ERC20 -> BEP20 swaps now and continually add new protocol support for other blockchains in the future. A multi-phase launch with continuous swap cap raises is our path to achieving this over the coming weeks and months.

Trading Volume and Liquidity Providers

In phase 1 and 2 of LeoBridge, 2 liquidity pools make bridge TXs possible:

  • wLEO-ETH (Ethereum Side of the Bridge)
  • bLEO-BNB (BSC Side of the Bridge)

As of launch, wLEO-ETH has $1.6M in total liquidity and bLEO-BNB has $1.5M in total liquidity.

All swaps through LeoBridge are handled via the wLEO and bLEO liquidity pools. When an ERC20 is swapped for a BEP20, it is first swapped into wLEO, unwrapped and rewrapped into bLEO. That bLEO is then immediately swapped for the chosen BEP20 output.

In the user's eyes, they never really owned LEO through the life of the bridge trade. They are not exposed to the price movement since the bridge TX immediately unwraps and rewraps their swap value and converts it into the BEP20 output.

LeoBridge slippage is based on the depth of liquidity in each side of the bridge pool. The ETH side and BSC side have almost identical liquidity right now and allow for mid-sized swaps with low slippage.

We believe that the maturity of LeoBridge will coincide with the rapid increase in depth seen on the wLEO and bLEO liquidity pools.

In order for LeoBridge to be viable in the long-run for large Bridge TXs, we need to see the $ value of liquidity pool depth increase drastically. This happens when:

  • More assets (wLEO & ETH, bLEO & BNB) are added to the liquidity pools
  • The value of assets in the liquidity pools increase

LP Rewards, Trading Volume and Bridge Fees

There is an inherently positive feedback loop for LeoBridge and the liquidity pools on either side of the bridge: as assets are converted, trading volume occurs on both sides of the bridge. This trading volume increases LP rewards via normal LP swap fees. This attracts more liquidity which increases the swap cap and allows for more/larger Bridge TXs.

Bridge TXs also generate Bridge fees which are used to buy/burn CUB and LEO, creating inherent demand and value for LEO as the Bridge gains adoption. In other popular DeFi projects, deterministic value is used to describe built-in value mechanisms that can be used to determine a base value for an asset. We believe a similar phenomenon will take place as LeoBridge gains adoption and expands to support a multitude of popular blockchain protocols.

LeoBridge Roadmap

ERC20->BEP20 is just the beginning of what we can do with LeoBridge. One of the core values of LeoFinance and Cub Finance is interoperability.

We want to serve as a bridge to all major blockchain protocols and allow our users to seamlessly access the top dApps and cryptocurrencies in this space now and in the future.

We believe that ERC20 -> BEP20 is a killer feature due to the current status of trying to swap funds from Ethereum to Binance Smart Chain but we also believe that this is just a glimpse of the future of cross-chain swapping.

The future of LeoBridge is in seamless cross-chain swaps and interactions with all major blockchains and cryptocurrencies. Every swap will bring in the 0.25% swap fee and burn both CUB and bLEO.
Multi-Phase Release Schedule for LeoBridge Support:

In this early stage of LeoBridge, the Swap Cap has been set to $3,000. This cap will be raised as Bridge TX volume increases and liquidity pool depth for wLEO and bLEO increase as well.

Find LeoBridge on the Cub Finance UI or at https://bridge.cubdefi.com

Note:

Phase 1 of the bridge handles ERC20 -> BEP20 swaps. We'll roll out the additional features of the bridge according to our roadmap. Smaller iterations between each phase will include things like custom token addresses, ETH native swaps, progress bar for the life of a TX etc.

Our work thusfar has gotten the key infrastructure of LeoBridge built. From here, we'll make rapid and regular improvements as we get feedback, consider new features and ultimately build toward our goal: servicing the massive void that exists in the market of trying to transition capital from blockchain to blockchain. Starting with BSC to ETH and expanding beyond.

In Other News, today we deployed our final version of Cub Kingdoms. The final step is to start our CertiK auditing process and then update our UI to Cub V2. Earlier today we tested Cub V2 and discovered some visual issues. We rolled back the UI update and expect to have it back online in the next 24-72 hours.

Update: CUB UI V2 is now live and Kingdoms have been added to the site. Our new vaults will open VerySoon™️

Over 6 weeks of development has culminated to this week. We're excited to bring a new era of features and rapid improvements to CUB now that this key infrastructure has been built and the bricks have been put in place for the long future ahead for Cub Finance.

Posted Using LeoFinance Beta

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First of all, I like to congratulate you to stay the course. I like the comment that Cub doesn't just want to be another clone, and provide something original. This is a good vision. Due to that you have quite a few patient investors including myself. I am following the BSC yield farming space for a while now, and I can say that if you didn't have a patient bunch of hive based investors you would have had a 'run-on-the-bank' by now, but you haven't and likely you won't for a while. But just a cautionary note; no one can survive a 'run-on-the-bank'.

So we are patient, but that said, you must reach out beyond hive and look for partnership opportunities. That will benefit the TVL, and you know very well, that TVL is a very important metric in this space.

I wish you luck and success. You know my investment is here for the long term, but please consider what I am proposing.

Posted Using LeoFinance Beta

I second that. Partnerships outside hive would bring in the new money plus more users. Development of thing was the first step and team is on course with it. Marketing should also start parallel with it, as soon as we have strong base.

Posted Using LeoFinance Beta

Agree because only if people know the service, they can use the service :)

Posted Using LeoFinance Beta

Congratulations on finally rolling this out. It was a long journey I am sure. It is great to see the result of all this time and effort.

CubFinance is something that, like Leofinance, is starting to shape up. Long-term outlook is vital for all this. Projects are not built overnight. Development takes time, especially when doing something more than copy/paste.

Outside of slippage and gas fees, LeoBridge takes a 0.25% swap fee. This swap fee is sent to the Cub treasury and 100% of the fee is utilized to buy/burn CUB and bLEO using the same structure as Cub Finance vault revenue.

  • 80% of the swap fee burns CUB
  • 20% of the swap fee burns bLEO

If LeoBridge becomes a huge success, this is going to eat up a lot of tokens. Remember, LEO is already very tight in terms of the circulating supply. And CUB could quickly find itself in that same position.

Posted Using LeoFinance Beta

I have personally tried sending USDT (ERC-20) to BSC and there are so many steps in between, it's crazy! I can handle the high GAS fees on ETH's side (not always) but the inconvenience is unbearable. It's time consuming as well. This bridge is a savior for those who want to get into ETH to BSC.

And yes, we might see a huge amount of capital flowing from ETH's end. This will reduce the substantial amount of CUB & bLEO tokens. We can expect a spike in the price in the upcoming months as more people start using the bridge.

I am interested to see this bridge marketed by Leo Finance team among existing ETH and BSC users. Let's get those eyeballs rolling towards CUB.

Posted Using LeoFinance Beta

Remember, LEO is already very tight in terms of the circulating supply.

There's no doubt about that, very obvious and healthy for the token

Posted Using LeoFinance Beta

There could be a lot of funds coming over the bridge from ETH. $500 worth of LEO will be burned and $2000 worth of CUB for every $1,000,000 that comes over the bridge. That can add up quick considering the low marketcap both tokens respectively have, and how many millions could cross the bridge!

Posted Using LeoFinance Beta

I did not figure out the $ amounts but that is terrific. It sounds like a lot but a millions dollars in transaction is really not a lot of money when you think about it. Considering there are billions on Ethereum, that is a drop in the bucket. And more is being generated every day on there like everywhere else.

Posted Using LeoFinance Beta

the 18 million TVL could double in a day with ETH bridging over

These are very good points.

Posted Using LeoFinance Beta

Thank you very much

Thank you for Leobridge.
Thank you for the CertiK audit.
Thank you for Cubfinance.
Thank you for Lightening.
Thank you for Metamask Sign-ups
Thank you for Twitter signups.
Thank you for WLEO
Thank you for LeoDex
Thank you for Leopedia
Thank you for Hivestats.io
Thank you for Leofinance.
Thank you for Steemleo.

From tokenized blogging to a three Blockchain token economy and a bridge across the two largest DeFi platforms by total value locked in the world.
Leofinance has been, and continues to be an amazing project.

@shortsegments

CBBA6A9CAD1446DE820AC3D107CE6976.jpeg

Posted Using LeoFinance Beta

Congrats to the LEO Team (would be nice to know the newest additions btw) for this huge milestones, many more to come as we can see.

The price of CUB does not reflect your work and all that you have done until that point. This is kinda disappointed for you I imagine.

But stay focused and it will go up as you are one of the most dedicated team in the crypto space. IT WILL PAY OFF !

Until then you will find me compounding my $CUBs and adding to the BNB-bLEO !

Cheers guys !

Posted Using LeoFinance Beta

Holy shit this is huge!

I love Hive initiatives and community by nature but would love this even if that was not the case.

Nice work primarily on the innovation and achievement. Secondarily on the spotlight you are shining on the blockchain we have loved for so long.

beerologistapproved.png

So putting Leo into the BLEO-BNB farm is the helpful thing to do?

Yes it is. Very helpful.

Posted Using LeoFinance Beta

Awesome job team! Let's push it to the world now! Better yet let's push it in front of those people complaining about the high Ethereum fees and show them a better way and how to use it.

Posted Using LeoFinance Beta

That's incredible, you guys are buidling real products and you focus on quality rather than rushing them.
I don't care about the wens, keep doing like you do.
Good work 💪👷👏

Posted Using LeoFinance Beta

image.png
Can we have discord linked up here besides telegram?

Posted Using LeoFinance Beta

Congratulation guys! I'm super excited about phase 3, Hive could use some nice price action as well :)

Posted Using LeoFinance Beta

An excellent improvement, and the new UI looks very good!

One suggestion from my side: when linking up with Hive, perhaps also link up with other gaming-heavy blockchains as well (e.g. GALA, Wax and others)? I think that may open up a set of entirely new use cases for LeoBridge.

Posted Using LeoFinance Beta

Excellent work without a doubt, it was something I was looking forward to using.

Posted Using LeoFinance Beta

Congratulations! Job well done! Now that Leobridge is live maybe leofinance team should hide a link to binance bridge on cubdefi?

Posted Using LeoFinance Beta

Congrats! As a software engineer myself, I know what it takes to build things at such a speed and scale and this launch deserves a lot of appreciation. Respect!

Posted Using LeoFinance Beta

Phase 3: #BEP20 -> $HIVE (and vice versa) (Q3, 2021)

Can't wait for Q3.
You guys seriously rock!
These quick low fee Tx between chains are going to be a HUUUGGEEE help! We'd even get bunch of more people to trade on Hive-Engine after Phase 4. That's all good for my investments :)

Posted Using LeoFinance Beta

Congratulations! This is a remarkable progress! I remember that quite some time ago someone, I think, once, the CISCO CEO (I'm not 100% sure) said that one year of the Internet is like 7 ordinary years. So, it’s true, 6 weeks is quite a long time. 😎

Fantastic achievement!

It's obvious from the rise of Pancake Swap that people value convenience over decentralisation so being able to swap so easily should be very popular once people discover it.

Out of interest has anyone done a direct comparison between the costs of doing a manual ETH > Binance > BSC vs using the new swap?

Keep up the great work!
!BEER !PIZZA


The NFT based music career game built on HIVE - Musicians: mint NFTs of your music and sell to players!

Posted Using LeoFinance Beta

Connect

Trade


@leofinance! I sent you a slice of $PIZZA on behalf of @risingstargame.

Learn more about $PIZZA Token at hive.pizza

Phase 3: #BEP20 -> $HIVE (and vice versa) (Q3, 2021)
Phase 4: ERC20/BEP20/HIVE -> native #BTC, #ETH.. via $RUNE mainnet (Q3-4 2021)

2021 is a massive year for Leo Community and CUB diamond hands.

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Yes! Very much so... an amazing year!

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Great to finally see this post! After reading through it, I understand what you've been through, taking one approach with LeoBridge which didn't work as you wanted, then going back and taking a completely different path.

LeoBridge could turn into a massively useful tool in this young cryptosphere, especially when we look at what's on the roadmap.

Personally, I don't have funds waiting to be brought from Ethereum space right now, so I'm patiently waiting for the release of Kingdoms. :)

I love the updates you've made to the UI, btw. All of them very useful. One possible minor bug that I remarked: if you have all details off in farms and change the sorting, one of the farms often has full details afterwards.

Posted Using LeoFinance Beta

Agree, those UI changes are nice.

Posted Using LeoFinance Beta

Flawless victory! Amazing work guys, simply proud to have met the great team around here and follow and be involved in all the projects that keep on giving. The CUB Finance is a DeFi with a Mission and Goals lay ahead and this is why it will be successful. LEO Bridge and Kingdoms should boost the yields in a new way in this field!

Posted Using LeoFinance Beta

Super pumped about this! Just another very solid piece of infrastructure that will eventually lead to bigger and bigger things. As the project widens and word starts making it's way into the mainstream, this could be a huge value add for LEO/CUB hodlers. Going to be very fun to watch this grow... Well done team!!!

Posted Using LeoFinance Beta

This is absolutely fantastic developed. Well done team I'm so excited about this new project and to see it emerge absolutely beautiful.

Well done

Posted Using LeoFinance Beta

1st comment. I am blessed. Let the weak hands cry in their loss cub revenue!

Posted Using LeoFinance Beta

Nice and helpful post 👌. Blockchain really helps lots of people around the world and connects them in knowledge sharing community 👍

This is the announcement I was waiting for... well, one of them anyway. I am very pumped to see the train continue to roll. I am invested heavy (for me) into Bleo/BNB pool on CUB and see this bridge bringing in a lot of value to the platform. The word must travel far and wide so that all of the money locked on ETH can migrate over.

Posted Using LeoFinance Beta

This is the announcement I was waiting for... well, one of them anyway.

LOL I was about to jump on the comment before I finished the sentence.

A lot more we are waiting for.

Posted Using LeoFinance Beta

Yeah, we are just getting started.

I am growing with Cub. I am learning
as well. I am teaching others through Cub.
This is a cycle going round and round.

!BEER

Posted Using LeoFinance Beta

Earning while learning.

That is what Leofinance is all about.

Posted Using LeoFinance Beta

I was going to ask if the swap woulf work the other way, but continued reading and saw it's already on the making. Your work has been absolutely astonishing! Have a !BEER and a big thank you for all you've accomplished so far!

I think it does.

Posted Using LeoFinance Beta

Thanks to the team behind this development, you guys are awesome is an understatement.

Posted Using LeoFinance Beta

So we are patient, but that said, you must reach out beyond hive and look for partnership opportunities. That will benefit the TVL, and you know very well, that TVL is a very important metric in this space.I wish you luck and success.

Posted Using LeoFinance Beta

I think it's silly individual's expectations in the space... even calling for "an experienced blockchain engineer" is laughable IMO. When you should be looking for smart innovative and creative developers that have a good mind for process and agreements or even sales/law because a smart contract is just that a smart contract. The difficulty is in simple implementation of a complex emergent structure from simple rules and making sure that it doesn't become malicious etc....

Posted Using LeoFinance Beta

I wanted to swap a token I need to get on binance smart chain from erc20 and I entered the contract address
0xa1d6Df714F91DeBF4e0802A542E13067f31b8262

but nothing seems to work. Is this because there is no link to the leo ecosystem?

Posted Using LeoFinance Beta

The improvements never stop.

Well done, LEO team!

Good thing. If the limit increase to 100k and more, it can be a cash cow whale service :)

Posted Using LeoFinance Beta

I have a few friends who are slowly getting into crypto and loving Pancakeswap.

When I shared the idea of the LeoBridge to one, the reply I go back was that Pancakeswap and Pancakebunny already both do this.

PB calling it 'Zap' and PS calling it 'Swap'.

What're your thoughts on these services and why would our ideal client choose to use LeoBridge instead?

Posted Using LeoFinance Beta

If anyone in the know has a sec, I'd really love someone to comment on those rival services and what our alternate value proposition would be.

Posted Using LeoFinance Beta

Swap and Zap it's a simple swap in BSC, CUBFinance also has this.

LeoBridge allows to swap ERC-20 tokens (Ethereum) to BEP-20 tokens (Binance Smart Chain).

image.png

Note: If I am wrong, do not doubt to correct me.

Posted Using LeoFinance Beta

So we're still not really sure if pancakeswap offers this feature at all?

Lol, how does nobody know this and why hasn't a big deal been made of it?

Posted Using LeoFinance Beta

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Another big important step in the development of CubDefi and Leofinance, LeoBridge and Kingdoms are amazing features!

Question: Is there any kind of collaboration planned with Pancakeswap or Binance? A little bit of this kind of publicity would really make the difference 😊

Posted Using LeoFinance Beta

Absolutely thrilled to be here to watch this plan unfold. The growth potential here is enormous and all gains here will benefit the Hive ecosystem. It is perfect

Posted Using LeoFinance Beta

I think that I get some cub and put up with this one about to bear fruit, this is undoubtedly great news, and I really want to be able to use the new updates!

Posted Using LeoFinance Beta

The updates are amazing! I know you guys have been seriously pressured and I am seriously impressed with what you guys have done in such a short amount of time! People have to remember, this is a marathon, not a sprint! But unfortunately most people in crypto have the attention span of a gnat, lol. Much love to the @leofinance crew!

Posted Using LeoFinance Beta

I have been waiting for this. I hope to see more people using the BNB/BLEO pool and maybe my small amount stored in the pool will grow a bit. I will try to add more to the pool so it can help support the bridge later to the month. It won't be too much but may help a bit.

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I am looking forward to Phase 4!

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Best for leobridge.
Hopefully in the future it will progress with very good development.

I thought it was a two-way street but right now we can only go from ERC-20 to BEP-20.

Can anyone from the team clarify that BSC to ETH will service will come in the future?

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