Why liquidity bridge?
There are two major categories of cross-chain assets:
- Assets that have tokens on one chain and use mint and burn solutions to cross chain. Tokens are linked through the mapped and mapping contracts and Total supply is maintained. There is no creation of a separate token with more supply.
- Assets that are mainstream and have issued separate tokens on different chains. Fundamentally the tokens are not linked, but token issuers officially give credibility to the token. Tokens like ETH, USDT are in this category.
While the 0xTrade Swap mint and burn bridge is serving the needs for category one, we see the importance of liquidity bridge and making mainstream token cross-chain live on 0xTrade swap.