Bridging non-reserve assets
Bridging of non-reserve assets, and steps to take. Pre-Order-Swap explained.
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Bridging of non-reserve assets, and steps to take. Pre-Order-Swap explained.
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Was this helpful?
The (DLN) protocol supports bridging any liquid token from the source chain to the destination chain, not just . While the actions taken by the system are similar to those used when , the internal flow differs and introduces considerations that must be communicated clearly for a seamless end-user experience.
Cross-chain settlements are executed in to simplify operations for solvers. As a result, whenever a non-reserve asset is bridged, it must first be swapped into a reserve asset before the order is created—a process referred to as the Pre-Order-Swap.
The create-tx API automatically handles this swap step. It queries DeFi aggregators in the background to simulate the swap and produce response.tx.calldata (see step 1a in the diagram). The API is optimized to select the best available rate.
Once a user signs and submits response.tx, the DLN smart contracts initiate the process by transferring the approved non-reserve assets to themselves (step 3a). The actual Pre-Order-Swap is executed via an Automated Market Maker (AMM) (step 3b). Given the potential for price slippage, the destination chain estimate is based on the minimum amount a user would receive from the swap.
This design—basing estimates on the minimum outcome of the Pre-Order-Swap—helps shield users from market volatility and reduces the likelihood of orders being ignored due to insufficient profitability from a solver's perspective.
If integrators prefer to manage the swap path manually, they can perform the conversion to themselves before calling the create-tx endpoint—ensuring complete control over the swap route.
Once the swap completes, the are locked within the protocol until the order is either or .
If the order is , the locked are returned to the user. It is important to note that the user will receive reserve assets back—not the original non-reserve assets used at the start of the process.
