Cross Chain Tokens
Last updated
Last updated
Chedda creates a money market hub, where tokens from any chain are bridged to the base chain and used to provide liquidity, or as collateral to take out loans.
Chedda's cross-chain transfer are built upon the LayerZero cross chain messaging protocol.
Two types of tokens are supported on Chedda cross-chain transfers:
OFTs are tokens which support the , allowing for seamless token transfers across supported networks through LayerZero endpoints. These tokens can be bridged to the Chedda base chain and used in the Chedda money market hub.
Tokens that do not implement the OFT standard can still be transferred across chains and used in the Chedda money market hub.
This is possible using an. Token holders send token to the adapter, which are then locked and an equivalent number of tokens minted on the destination chain. Tokens are only unlocked on the source chain when tokens are sent from the OFT on the destination chain, back to the adapter.
The practical implication of this, is that, any ERC-20 token which are otherwise sitting idle on Ethereum and other chains, can be bridged to the Chedda base chain and used in lending and borrowing on Chedda isolated lending pools.
Read about Chedda Isolated Lending Pools .