PRESS RELEASE BY EQUITO FINANCE
Each blockchain network has its own set of particular features that make it different and sometimes even better than other blockchains. With each blockchain designed for specific use cases, it’s a given that different people will find different blockchains appealing. But what happens when people need to transfer crypto-assets or important data from one blockchain to the other when different blockchains are built on different frameworks (to create their individual uniqueness)? For example, how does a DeFi user transfer his assets from the Ethereum blockchain over to the Algorand blockchain in order to enjoy the advantages of faster transaction speed and lower transaction fees offered by the Algorand blockchain without selling his Ether to buy Algo? Equito Finance solves this problem perfectly.
How does Equito Finance do this, you may ask? Equito Finance is a Decentralized Exchange (DEX), and although Equito Finance itself is built on the Algorand blockchain, it has a bridge to the Ethereum blockchain built into it. This bridge allows the transfer of crypto assets or other important data from the Ethereum blockchain to the Algorand blockchain, thereby allowing the ability to interact with decentralized applications in the Algorand ecosystem.
Just like the bridges we drive our cars over are structures carrying a road to allow our safe passage over obstacles, this bridge on Equito Finance will allow the easy and safe transfer of Ether from the Ethereum blockchain to the Algorand blockchain despite the obstacle created by the difference in the fundamental structure of these two blockchains.
And how does this work? Once users connect the Ethereum wallet containing their Ether to the bridge, they click on the option to “use bridge,” which locks the Ether found in their wallet in the Equito Vault, and in exchange, Equito Finance mints synthetic tokens that are a virtual representation of the locked Ether (these tokens are minted on the Algorand blockchain). Since these synthetic tokens will follow the protocol required for creating ASA (Algorand standard assets), they are essentially “Ethereum tokens that are usable on the Algorand blockchain.”
On Equito Finance, the synthetic token for Ether is called awETH, and it can be used for borrowing, lending, staking, and creating synthetic short and long positions in various DeFi platforms in the Algorand ecosystem.
With transaction fees of fractions of a penny and the ability to process up to 1000 transactions per second with a 5-second finality, the Algorand network makes things a lot easier for crypto enthusiasts wishing to use DeFi protocols without having to deal with miners, validators, and the slow transaction speed of the Ethereum network. The awETH will enjoy the same security, compatibility, speed, and ease of use as the ALGO itself.
But how do users of this bridge get their Ether back to their Ethereum wallet when they want to? Users can easily transfer their Ether back to the Ethereum blockchain and into their Ethereum wallets; all they have to do is unlock their Ether via the bridge they initially locked it with.
Choosing to unlock their Ether causes the synthetic token (awETH) they had minted earlier to be burned, and liquidity (Ether) is returned to the originating blockchain.
Some advantages of using the bride on Equito Finance are:
- Users are able to bridge their assets faster. This is because it is the fastest bridge on the Algorand blockchain. Equito Finance’s bridge boasts about having a 30-second round trip.
- Users have less worry about liquidity. Since the bridge is built into a DEX, this allows users of the bridge access to more liquidity when compared to other bridges.
- Users do not need to go through any form of verification to use the bridge.
Although the bridge currently supports only Ether, support for five other major ERC-20 tokens will be added in the future.
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