Why we’re bullish on @biconomy’s Hyphen!
Learn more about Hyphen, Biconomy's cross-chain bridge, and how $BICO plays a key role in the ecosystem.
A Deep Dive 🧵
blog.li.finance/biconomys-hyphen-a-deep-dive-40c13a6bb869
1/ Biconomy is a suite of protocols that help dApps provide a great UX to their users. It consists:
• Hyphen — for cross-chain transactions
• Mexa — for gasless transactions
• Forward — for ERC20 payments
These protocols power the Bicosystem!
2/ Today, we’ll focus on Biconomy’s cross-chain bridge, Hyphen.
Here’s what’s special Hyphen:
• Enables cross-chain transactions
• Executes low fees and high-speed tx's (sometimes in less than 30s)
• Soon will support cross-chain contract calls
vimeo.com/585321200
3/ Here’s how transfers via Hyphen work:
1️⃣ Funds & destination chain ID are sent to the smart contract
2️⃣ Watch Towers send a deposit signal to the Executor nodes
3️⃣ Executor nodes initiate transfers on the destination chain
4/ Biconomy also rolled out Hyphen 2.0 recently. Let’s take a closer look at some of the features 👇🏻
twitter.com/biconomy/status/1504076567877615618
5/ 1️⃣ Anyone can become a liquidity provider
Hyphen 2.0 is permissionless and allows anyone to add liquidity up to $10,000 in open pools and facilitate cross-chain transfers.
twitter.com/biconomy/status/1504096590499237888
6/ 2️⃣ Dynamic Fees
The dynamic fee model allows liquidity pools to be balanced by incentivizing transfers in favor of source chains with less liquidity than those with abundant liquidity.
twitter.com/schin_tomar/status/1506893110957457409
7/ 3️⃣ Increased Capital Efficiency
The Biconomy team believes that capital efficiency is very imp. for a bridge. The dynamic fee model makes Hyphen’s architecture more capital efficient.
twitter.com/biconomy/status/1499269897267777537
8/ Let’s look at some other key features of Hyphen’s architecture:
➨ Security
• Hyphen is crypto-economically secure.
• Smart contracts have been audited
• Meta transactions on Biconomy enhance security
• Biconomy chain has a decentralized group of relayers
9/ ➨ Statefulness
• Biconomy’s overall protocol is highly stateful
• Relayer network watches all events the smart contracts interact with
• Biconomy is not limited in the information it can share between chains about transactions
10/ ➨ Connectivity
• Hyphen’s connectivity is limited to a few chains
• It only supports ETH, BICO, USDC, and USDT
With Hyphen 2.0, it is believed that support for new chains and assets will be added more frequently.
11/ Is Hyphen’s design trustless?
Hyphen’s design is crypto-economically secure and decentralized, but it is not trustless. This is because:
• It relies on off-chain servers known as Executor nodes
• Only Executors have the right to transfer funds from the smart contract
12/ However, high security is maintained as nodes need to stake collateral higher in value than the amount the funds they can transfer.
This disincentivizes the Executors nodes to act maliciously.
13/ Here’s how we can evaluate Hyphen based on these metrics:
14/ How’s $BICO imp. to Biconomy? It has utility:
• Users can delegate $BICO to nodes and earn rewards
• LPs earn $BICO rewards on Hyphen
• Relayers are incentivized with $BICO
• All $BICO owners have governance powers
Learn more here: biconomy.io/bico
15/ To summarise, here’s why Hyphen is one of the best bridges:
• Over 17,000 new customers have used Hyphen since its launch
• It has done over $110M in total volume
• Highly capital efficient
• One of the fastest (avg. transfer time < 1 min.)
twitter.com/biconomy/status/1501068814410137606
Biconomy is going places, and we’re very excited to integrate Hyphen into LI.FI
We look forward to hosting the degens from the Bicosystem!
If you want to learn in more detail about Hyphen, please check out the deep dive curated by our research team.
Please don’t forget to like/RT/QT this thread and help us educate the ecosystem!
blog.li.finance/biconomys-hyphen-a-deep-dive-40c13a6bb869
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