ChainPort Bridging Methods | Wrapped Asset Bridging

How Wrapped Asset Bridging Works

Wrapped Asset Bridging is ChainPort's traditional bridging for tokens architecture, which involves the issuance of tokens on one target chain backed by assets held in a vault on the source chain. A wrapped token reflects the value of the underlying assets, enabling seamless cross-chain transfers. As part of the bridging process, the bridge locks assets on the original blockchain in multi-sig segregated vaults, while equivalent wrapped tokens are minted on the target blockchain. In order to bridge to another chain or return to the native chain, the minted tokens must first be burnt. 

The mechanism facilitates the interoperability and liquidity of different blockchain networks, enabling token issuers to move seamlessly between chains for a variety of technological, business, or other reasons, and allowing users to maximize the value of different ecosystems without compromising security or asset value.

It is a simple and fully automated process that takes approximately two to five minutes to complete, and can either be performed via the ChainPort UI or via direct contract calls.

Current Bridgeable Assets:

Tokens from or to chains supported by ChainPort.

Wrapped Asset Bridging

A legacy bridging method creates a wrapped version of an asset on the target chain and locks it with fund segregation on the source chain.

External Cross-Chain Protocols

ChainPort is connected to external bridging protocols that allow permissionless burning and minting of native tokens.

Native Token Bridging

ChainPort provides a platform for bridging assets originally minted on multiple chains but managed by their issuer and guaranteed instant finality.

ChainPort Wrapped Asset Bridging Unique Features

Funds Segregation

Only a small percentage of native assets are held on hot bridge contracts, with the remaining majority being stored in cold storage vaults with MPC and multi-signature security provided by Fireblocks and Gnosis Safe.

Preservation of Asset Value

Wrapped tokens are secure and standardized, ensuring that the underlying assets' value is accurately reflected. Assets may be transferred between chains without having to return to their original chains, and without compromising their intrinsic value.

Single Tx Bridging

Single Tx bridging eliminates the need for users to execute the release transaction on the target chain, enhancing user experience significantly. There is a small amount of extra gas taken on the source chain in order to cover the minting and sending costs.

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Managed and Controlled Liquidity

Native Token Bridging allows liquidity to be added or removed from the bridge contract as needed by token issuers. This flexibility empowers issuers to manage liquidity efficiently, ensuring that users can bridge their tokens whenever they choose.

Project Pool Stats

ChainPort's intuitive interface transforms liquidity management with a user-friendly display. All vital stats are readily visible, allowing project teams to make informed decisions about adding or removing liquidity based on real-time data.

White-label Specific Wallets to Manage Liquidity

Token issuers can white-label specific wallets to provide a secure and controlled environment for managing liquidity. White-labeling wallets will allow only authorized parties to add or revoke liquidity, ensuring the integrity of the bridging process.