Mosaic utilizes Connext for Passive Liquidity Rebalancing
Mosaic, a transfer availability layer, is integrating Connext as another DeFi bridge in its liquidity rebalancing procedure. We are delighted to announce the integration, as it enhances Mosaic’s liquidity provisioning and brings further liquidity to Connext as well.
Mosaic is transitioning into Phase 2 with three first-in-class innovations: dynamic fees, passive liquidity rebalancing and active liquidity management. Mosaic provides multiple methods of assurance that enable cross-chain-and-layer transfers to go through: firstly, through the LP vaults it maintains on different chains; secondly, through liquidity forecasting and rebalancing: when a vault on the destination chain is running low on funds, it proactively moves funds to the destination chain through external bridges such as Hop or Connext; thirdly, by enabling just-in-time liquidity bots to provide liquidity when Mosaic’s liquidity rebalancing falls short.
By integrating a network of external bridges, Mosaic creates a new generation of cross-layer transfers among L1s and L2s including Polygon, Arbitrum, Optimism, Starknet, Fantom, Avalanche and Moonriver.
Connext is the interoperability protocol of L2 Ethereum. It allows users to send tokens or call data across chains/layers. It is the only interoperability system that does this quickly and cheaply without introducing new trust assumptions. Connext uses nxtp, a light-weight protocol for generalized cross-chain transfers. The protocol comprises a simple contract that utilizes a locking pattern to prepare and conduct transfers, a network of off-chain routers that partake in pricing auctions and pass calldata between chains, and a user-side SDK that discovers routes and prompts on-chain transfers.
Connext supports a range of leading L1, L2s such as Polygon, Arbitrum, Optimism, Starknet, zkSync, Celo and Moonbeam. Connext is aimed at developers who are looking to build bridges and other native cross-chain applications. To date, the network has overseen over $1B in transactions.
The Mosaic transfer availability layer uses liquidity forecasting and leverages a network of existing bridging infrastructure to rebalance funds on its LP vaults on different chains. To ensure a transaction goes through successfully, Mosaic employs JIT liquidity bots in case passive liquidity rebalancing falls short of the mark. As a result, Mosaic creates a new generation of cross-layer transfers among L1s and L2s including Polygon, Arbitrum, Optimism, Starknet, Avalanche, Fantom and Moonriver.
Mosaic’s integration with Connext is an important step towards Composable Finance’s vision of an interoperable future. Mosaic’s continued development efforts and improvements are aimed at reducing the high costs and transaction times that accompany the movement of assets across different layers and chains.
By leveraging bridges like Hop and Connext, Mosaic will be positioned as the unified liquidity layer that enables true cross-chain capabilities.
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