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.
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.
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.
- 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.
Users can pay their transaction fees in any of the following:
- The source chain’s native gas token
- 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’ Ramachandran||Founder at Router Protocol|
|Priyeshu Garg||Co-founder at Router Protocol|
|Shubham Singh||Co-founder at Router Protocol|
|Chandan Choudhury||Co-founder at Router Protocol|
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.
$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 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.
|Allocations||Tokens %||Total Tokens||Vesting Period|
|Seed Round||3.00%||600,000||20% unlocked 180 days from TGE, the remaining tokens vested linearly for 9 months|
|Private Round 1||2.50%||500,000||20% unlocked on day 0, the remaining tokens vested linearly for 9 months|
|Private Round 2||5.11%||1,022,000||20% unlocked on day 0, the remaining tokens vested linearly for 9 months|
|Reward Pool||17.22%||3,444,000||To be distributed in form of incentives to the users over a period of 3 years|
|Team||15.00%||3,000,000||10% unlocked on month 9, remaining 90% vested monthly for following 48 months (4 years)|
|Ecosystem Fund||25.42%||5,084,000||8% on day 0, 7% at the end of month 3, remaining 85% vested linearly over 5 years|
|Liquidity Provisions||1.75%||350,000||22.86% unlocked on day 0, the remaining distributed quarterly over a period of 12 months|
|Foundation||20.00%||4,000,000||An 18-month cliff, followed by vesting for 39 months or beyond as per fundraise & other strategic requirements.|
|Partners & Advisors||10.00%||2,000,000||10% on day 0, 10% quarterly for 2 quarters, remaining 70% distributed weekly over a period of 4 years|
Official $ROUTE Token Addresses
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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