Cross Chain Liquidity
Trade Reports

Router Protocol: A Modular Cross-chain Liquidity Protocol

UniFarm is excited to collaborate with Router Protocol for the 2nd time, enabling long-term incentives for $ROUTE token holders.

Users are able to stake their UFARM – ROUTE LP tokens and farm multiple other tokens as rewards for staying staked in this Thunder Farm on Polygon Network.

Router Protocol has consistently been a fantastic partner for UniFarm. We’ve collaborated on numerous marketing initiatives. The project was part of one of our earliest UniFarm Cohorts.  Today, we’d want to share more with you about this incredible project.

Introduction to Router Protocol

Router Protocol is a cross-chain communication mechanism focused on bridging assets across layer 1 and layer 2 networks using stablecoins as the medium of value transfer.

Along with connecting blockchains and facilitating open information flow, Router has also made smart order-routing possible, allowing users to swap their assets on various networks smoothly.

Router Protocol wants to resolve the issue of keeping users in oblivion on exactly what goes under the hood. Thus, utilizing Router is completely transparent, and users can see what goes on “under the hood” every time they interact with the protocol.

Router thinks cross-chain interoperability is the way of the future. The fragmentation that plagues traditional finance need not affect the crypto business.

The Architecture

Unlike traditional cross-chain protocol deployments, which use 1-to-1 bridges, Router builds a mesh network where all chains are connected to one another via the same set of router nodes. These nodes have the ability to read from and write transactions on every blockchain that is a part of the super mesh created by the Router.

Image Source: Router Protocol

As a result, every new chain may simply be plugged into Router’s super mesh by pushing the relevant parameters to all router nodes.

Router’s Different Components

  • Chains: These blockchain networks are a part of Router’s “super mesh” of liquidity.
  • Bridge Contracts: Every chain supported by Router Protocol has a bridge contract deployed on it.
  • Fee Manager Module: With Router Protocol, users get the utmost flexibility in choosing which token to use for transaction fees.
  • Pathfinder Algorithm: Router employs a proprietary pathfinder algorithm to discover the best path to transfer assets from the source chain to the destination chain.
  • Liquidity Pools: Router Protocol can connect to any DEX protocol’s liquidity pools.

External Entities

  • Users: Anyone who engages with Router’s smart contracts is referred to as a user. Users can be divided into one or both of the following groups depending on their extent of interaction: Trader or Liquidity Provider.
  • Arbitrageurs: An external market participant who seeks to profit from price inefficiencies is known as an arbitrageur. By adjusting liquidity among Router’s different bridge reserves, arbitrageurs contribute significantly to the cross-chain functionality of the protocol.

Key Features of Router Protocol

Unlike other cross-chain projects whose business model revolves around their native platform token, Router’s business model derives from providing value to users and expert traders.

1. Swap One Token to Another Across Chains

Router Protocol allows you to convert any asset X on chain A to asset Y on Chain B.

2. Cost-effective

Users can pay their transaction fees in any of the following:

  • The source chain’s native gas token
  • $USDC
  • ROUTE/DFYN tokens

Users will get a 50% discount on fees paid in $ROUTE tokens and a 20% discount on fees paid in $DFYN tokens as an added perk for their community.

3. Modular Mesh Network

To connect different blockchain networks, Router Protocol is building a mesh network. A mesh network is more flexible than the 1-to-1 bridge deployments now in use, which serves as dedicated linkages between two chains.

4. Cross-chain Settlement

Router Protocol ensures that no user money is blocked and that all transactions are settled.

5. Best Price Swaps

Router Protocol uses its Pathfinder Algorithm to find the most suitable route to swap tokens between different chains.

6. Plug and Play

Developers can use Router Protocol’s SDK to create sophisticated cross-chain blockchain applications.

7. AMM Fallback

In the event of stable asset scarcity, Router Protocol leverages Dfyn AMM as a fallback reserve to enable cross-chain asset transfers without causing any fragmentation. Although Router can be plugged into any AMM or DEX, it is best used with its own DEX, Dfyn Exchange, to guarantee a transaction’s finality.

8. Isolated Execution Module

Transactions are carried out by Router on a stateless execution pallet, which can prevent direct interaction with the bridge reserves. Any hostile entities won’t be able to access the reserve funds if the reserves are kept apart from the execution environment.

People Behind Router Protocol

Ramani ‘Ram’ RamachandranFounder at Router Protocol
Priyeshu GargCo-founder at Router Protocol
Shubham SinghCo-founder at Router Protocol
Chandan ChoudhuryCo-founder at Router Protocol

Project Roadmap

Many people have inquired about Router Protocol’s future prospects, or at the very least, the company’s strategy. Here are some noteworthy ideas and activities that are yet to take place.

Q4 2022 – Q1 2023

  • Router v2 launch –> Dedicated chain to host Router’s infrastructure
  • Router’s multi-chain token standard
  • Leveraging IBC to connect to the whole Cosmos ecosystem

$ROUTE Token Utility

The goal of Router has always been to increase transparency in the DeFi industry. Everything they did, from the tokenomics underlying the protocol to their modest and unassuming seed raising, was done in the spirit of open-source development.

1.) Governance

$ROUTE holders will be able to use their tokens to participate in Router’s governance by voting on protocol amendments and upgrades by Router Protocol.

2.) Revenue Sharing

The Router Protocol will levy a tiny cross-chain transaction fee, which will be split between validators and liquidity providers.

3.) Concession on Transaction Fees

Users that pay Router’s cross-chain transaction fee in $ROUTE tokens will get a 50% discount. If a transaction costs $4 in stablecoins or the native gas token of the source chain, users only need to pay $2 in $ROUTE tokens.

4.) CrossTalk Fees

In Router’s CrossTalk library, the $ROUTE token will be utilized for fees.

5.) Unified Gas and Transaction Fees

By allowing users to pay a combined (gas + transaction) fee in $ROUTE tokens, Router Protocol has simplified the process of paying gas fees for cross-chain transactions.

It is crucial to note that, while users will be rewarded for paying their fees in $ROUTE tokens, they can also choose to pay their fees in the source chain’s native gas currency.

$ROUTE Tokenomics

The total supply of the $ROUTE token is 20,000,000.

Route Protocol has put a lot of effort while designing the tokenomics of the $ROUTE token to ensure fair distribution as well as decentralization of the protocol.

AllocationsTokens %Total TokensVesting Period
Seed Round3.00%600,00020% unlocked 180 days from TGE, the remaining tokens vested linearly for 9 months
Private Round 12.50%500,00020% unlocked on day 0, the remaining tokens vested linearly for 9 months
Private Round 25.11%1,022,00020% unlocked on day 0, the remaining tokens vested linearly for 9 months
Reward Pool17.22%3,444,000To be distributed in form of incentives to the users over a period of 3 years
Team15.00%3,000,00010% unlocked on month 9, remaining 90% vested monthly for following 48 months (4 years)
Ecosystem Fund25.42%5,084,0008% on day 0, 7% at the end of month 3, remaining 85% vested linearly over 5 years
Liquidity Provisions1.75%350,00022.86% unlocked on day 0, the remaining distributed quarterly over a period of 12 months
Foundation20.00%4,000,000An 18-month cliff, followed by vesting for 39 months or beyond as per fundraise & other strategic requirements.
Partners & Advisors10.00%2,000,00010% on day 0, 10% quarterly for 2 quarters, remaining 70% distributed weekly over a period of 4 years

Official $ROUTE Token Addresses

Ethereum0x16eccfdbb4ee1a85a33f3a9b21175cd7ae753db4
Polygon0x16eccfdbb4ee1a85a33f3a9b21175cd7ae753db4
BSC0xfD2700c51812753215754De9EC51Cdd42Bf725B9
Arbitrum0x11BbF12363dC8375b78D2719395d505f52a02F68
Avalanche0xf44Ff799eA2bBFeC96f9A50498209AAc3C2b3b8b
Fantom0x11BbF12363dC8375b78D2719395d505f52a02F68
Optimism0x8413041a7702603d9d991F2C4ADd29e4e8A241F8
Harmony0x11BbF12363dC8375b78D2719395d505f52a02F68
Cronos0x13538f1450Ca2E1882Df650F87Eb996fF4Ffec34
Aurora0xA1fC14bC890a98142443B7ABc0Eeccae6186cd9a

Earn Other Tokens by Staking UFARM – ROUTE (LP Token)

For those who wish to earn high yields on their investments and diversify their portfolio at the same time, UniFarm is the best bet in all forms.

There are several examples of users who’ve earned staggering returns by investing small in UniFarm.

What Do You Need to Do?

For the tokens you’ve purchased using a decentralized exchange, you need to transfer those tokens to your MetaMask wallet and stake those tokens in UniFarm.

You will earn a minimum of 80% APY, which can go up to 400% APY maximum (when purchasing a booster pack), which is a win-win for investors.

You can follow this How to Stake guide to learn the staking process.


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