Wormhole Frens — Swim Protocol
Swim provides a simple way to transfer tokens across chains via multi-token liquidity pools while also utilizing Wormhole’s Portal bridge for the underlying bridging function.
1. What is Swim Protocol?
Swim is a multi-chain AMM that enables cross-chain swaps by establishing liquidity pools of two or more tokens across multiple blockchains. This eliminates the need for wrapped assets by allowing users to swap from a native asset on one chain to a native asset on any other supported chain. This is accomplished by utilizing Wormhole’s Portal Bridge to bridge those assets.
Swim’s solutions reduce the barriers users face when performing cross-chain transactions, allowing for seamless interoperability between various blockchain networks.
A. Native to native swap
Swim protocol eliminates the need for users to interact with wrapped assets by allowing a swap from a native asset on one chain to a native asset on any other supported chain.
B. Bridge status feature
Bridge status is a way for users to see where their funds are at every step of the way, without having to understand the cross-chain complexity under the hood. This unique feature provides the ability to push funds through the process if they happen to get stuck somewhere along the way, allowing anyone to continue bridging where the process left off.
C. Pool Design
Here you can find more information on how pools are designed, and why Swim used AMM-style pools instead of a 1-to-1 bridging solution.
TL;DR: The pools are designed based on a) what people want to bridge and b) consolidating capital to one high-throughput avenue.
2. Solana Ignition Hackathon Winner!
Swim Protocol has come a long way in just a few short months. Back in October 2021, they won the Wormhole Prize at the Solana Ignition Hackathon, and in March 2022, they launched their Alpha mainnet.
3. Wormhole Implementation
Swim utilizes Wormhole’s Portal bridge by relying on its mint & burn mechanism, which creates wrapped assets when initiating a bridge transfer. As assets are deposited onto Swim’s smart contracts, the tokens are bridged via Portal and the resulting wrapped assets are deposited into smart contracts on the target chain. These are responsible for maintaining an accurate state of token balances in the pool.
For Swim users to experience a seamless transfer, this process happens “behind the curtain”.
Below is an example for a ERC20 (Ethereum) to SPL (Solana) swap.
- User connects both Ethereum and Solana wallets to Swim
- A transaction is submitted on Ethereum for a ERC20 (on Ethereum) to SPL (on Solana) swap
- The specified ERC20 swap token is sent from the user’s ETH wallet to the Swim (Ethereum) liquidity pool
- Swim smart contracts detect that the respective ERC20 token has been received in the liquidity pool
- The Swim smart contract on Ethereum then sends the received tokens via Wormhole to Swim’s smart contracts on Solana
- The wormhole-wrapped ERC20 token arrives at Swim’s smart contract on Solana, which then determines the correct bonus/slippage and execution price based on the algorithm
- Swim credits user’s SOL wallet with the native SPL token specified (from the Swim Solana liquidity pool) based on the bonus/slippage curve.
Voilá! The user has now successfully swapped from native ERC20 on Ethereum to native SPL on Solana.
See what Swim has to say about integrating Wormhole:
“Security is an integral part of any bridging experience and we felt it was necessary to ensure safe transactions as a vital first step in creating the protocol. Our team believes that Wormhole will likely be the most performant bridge, in terms of speed, while maintaining a robust degree of security. Additionally, an advantage of Wormhole is that it will likely grow beyond the currently supported chains to include other blockchains. Swim will in turn grow with each new iteration of Wormhole, increasing our protocol’s functionality.”
4. More from Swim Protocol
Don’t be shy, the water’s fine!
If you’d like to find out more, connect with our frens at Swim:
Website | Twitter | Telegram | Medium
5. Join the ever-growing Wormhole community
If you have questions, need support, or just want to connect, join the Wormhole community and keep up to date with our up-and-coming announcements. We’re always happy to hear your feedback. Join our discord, and drop us a comment!