UniFarm Partners With Multichain For Cross-chain Transfers
We are elated to announce that UniFarm has partnered with Multichain to enable cross-chain transfers with Multichain’s cross-chain router protocol. So far, users at UniFarm had to go to different platforms to buy tokens to stake at UniFarm, and also to sell these tokens. With this strategic partnership, we aim to ‘bridge the gap’ by deploying a ‘bridge’ to accelerate cross network transactions and make the user experience even better.
What is Multichain?
Multichain is a web3 Router. It is a platform developed for unrestricted cross-chain interactions. Multichain’s solutions enable all blockchains to interact with one another. There are no restrictions on Ethereum-like chains (e.g. Binance Smart Chain), other Layer 2 chains needing Ethereum finality (e.g. Polygon), a network of Parachains (e.g. Moonbeam in the PolkaDot system), Bitcoin-type chains (e.g. Litecoin), or COSMOS chains (e.g. Terra). All of these are either integrated or on their way to becoming integrated.
Multichain is almost universally usable as an interoperable layer since it supports all ECDSA and EdDSA encrypted chains. It is now the market leader in cross-chain transactions, with a fast growing family of chains and daily volumes of more over $100 million, Total Value Locked (TVL) of more than $5 billion, and thousands of daily users attest to its popularity and security.
How Does the Multichain Bridge Work?
The Multichain Bridge helps connect two blockchains. The asset to be bridged is transferred to an unique SMPC wallet address and safely stored there on the asset origin chain. On the destination chain, a smart contract mints tokens that are identical to those in the Decentralized Management Account and transfers them to the user’s wallet. When tokens are transferred to the smart contract, they are burnt and subsequently released on the origin chain by the SMPC nodes.
The SMPC nodes execute several functions automatically and without human involvement in connecting an origin blockchain to a destination blockchain:
(a) When a new bridge between two blockchains is constructed, the SMPC nodes create the Decentralized Management Account, to which assets are sent. These assets are kept safe while cross-chain assets are created on the destination chain. This address is exclusively controlled by the SMPC nodes and is not controlled by humans or any other externally owned address.
(b) Additionally, when a new bridge between two blockchains is constructed, the SMPC nodes connect to a new Wrapped Assets smart contract on the destination chain. A third party or the Multichain team may construct this contract. It is used to create new tokens on the destination chain or to burn existing tokens when assets are redeemed to the origin chain. This contract is either AnyswapV5ERC20.sol or a contract altered from it to incorporate specific code needed for a project, such as transaction tax, and so on.
(c) The Decentralized Management Account is monitored by the MPC nodes. When a new asset arrives, the Wrapped Asset smart contract on the destination chain is triggered to mint tokens.
(d) If assets are redeemed, the MPC nodes activate the Wrapped Asset smart contract, which burns the tokens. The assets are subsequently released from the Decentralized Management Account and sent to the user on the origin chain via the MPC nodes.
On the destination chain, the wrapped asset token contract AnyswapV5ERC20, which is a superset of the ordinary ERC20 type of contract, only permits MPC nodes to mint assets. To avoid a non-equivalence between assets owned by the SMPC address and those wrapped assets generated, no other address is permitted to mint. As a result, several popular asset types, such as elastic supply (or rebase) tokens, are incompatible with Bridges.
On the source chain, an asset is locked up in an MPC smart contract, and a similar wrapped asset is minted on the destination chain. The wrapped asset is burnt in the reverse process (called redeeming), and the asset in smart contract is returned back to the chain from where it came from. As a result, a bridge can only ever connect two blockchains. There are presently over 600 bridged assets on Multichain, and it is simple to deploy new ones, a process that takes around 2 weeks and is free of charge. Because they do not need liquidity on each chain, their custodial bridges remain the ideal alternative. They will continue to exist alongside the other cross-chain transfer methods. They are especially helpful when introducing simple ERC20-like tokens on new networks that do not yet have tokens is to be done. For each token, many two-way bridges may be deployed.
UniFarm x Multichain: What’s in for you?
As mentioned above, earlier there was a lot of to-and-fro in case a user wanted to carry out cross-chain transactions. With the Multichain Bridge in place, users at UniFarm will be able to stake seamlessly and leverage the power of transferring their tokens from one chain to another.
Currently UniFarm is on four blockchains: Ethereum, Polygon, Binance and Avalanche. While Multichain supports over 25 blockchains: Avalanche, Binance, Ethereum, Polygon, Kucoin, Fantom to name a few, along with EVM Layer 2 blockchains like Arbitrum and Boba and even Bitcoin-like chains. Multichain also supports over 1,100 tokens.
So, for example you have 1,000 $UFARM tokens lying in your Ethereum wallet and you want to stake in a cohort on Binance network, all you have to do is just connect your wallet to Multichain and swap your UFARM on Ethereum to Binance. Similarly, you can do this with other tokens on different chains.
How to Use Multichain?
- Visit app.multichain.org
2. Connect to your preferred network and wallet.
3. Choose the desired token to be transferred.
4. Select the receiving chain, i.e, the destination chain.
5. Enter the number of tokens you wish to transfer.
6. Execute your transaction.
7. Come at app.unifarm.co and start staking!
Experience staking at UniFarm like never before! Just swap your tokens from one blockchain to another in a matter of few seconds and earn high APYs on your stakes. We have also made a tutorial for your better understanding. Don’t forget to check it out.