Blockchain Interoperability Solution Allbridge ‘Brings DeFi to the XRP Ledger’
On Thursday (April 14), the team behind cross-chain bridge Allbridge announced that it had “successfully integrated support for XRP Ledger (XRPL), a decentralized, public blockchain built for payments,” delivering on a promise it made back in January.
What Is Allbridge?
According to Allbridge’s documentation, a blockchain bridge is “a connection that allows tokens and/or arbitrary data to be transferred from one chain to another.” Although the two blockchains “may have different protocols, rules, and governance models,” the bridge “creates a reliable mechanism for both chains to interoperate”. The various blockchain bridge designs “may generally be classified into two categories: more centralized bridges that rely on trust or federation, and more decentralized, trustless bridges.”
Here is how they explain what Allbridge is:
“Allbridge is a simple, modern, and reliable way to transfer assets between different networks. It is a bridge between both EVM (Like Ethereum, Polygon, BSC) and non-EVM compatible (like Solana, Terra) blockchains, that aims to cover L2 (like Arbitrum, Optimism) solutions and NFT transfers in the future.Allbridge’s mission is to make the blockchain world borderless and provide a tool to freely move assets between different networks. In the future, it will evolve into a DAO-style multi-chain hub, establishing connections between the EVM and non-EVM networks.“
And here is how Allbridge is different from its competitors:
- “EVM, L2 and non-EVM blockchains support“
- “Fast transfers”
- “Architecture flexibility“
- “Dynamic fees and reduction mechanics“
- “Security“
Here are a few important stats:
Allbridge Announces in January 2022 Upcoming Support for XRP Ledger
On January 26, Ripple issued a press release that Allbridge was working on integrating the XRP Ledger, and that it expected this integration to “go live at the end of Q2 2022.”
The press release went on to say that this integration would enable “the seamless transfer of its native digital asset XRP across Ethereum, Avalanche, Solana, Terra, Polygon, Fantom, Binance Smart Chain, Celo, Aurora, Harmony and Heco,” andbring assets such as $AVAX, $SOL, $LUNA and $MATIC—as well as the $USDT, $USDC and $UST stablecoins—directly to the XRP Ledger, leveraging its built-in decentralized exchange (DEX).”
Andriy Velykyy, co-founder and CEO of Allbridge, made the following statement then:
“This partnership offers us a unique opportunity to add the support of XRP Ledger, enabling millions of DeFi users to interact with the XRP ecosystem. Allbridge will provide the bridging solution to make it possible and Ripple the technical support. Together, we contribute to growing cross-chain interoperability within the DeFi space.“
Ripple had this to say about XRPL:
“The XRP Ledger was created in 2012 with the first DEX. Other capabilities inherent to the XRP Ledger such as auto-bridging allow for assets transferred to the XRPL to access the DEX’s existing liquidity to create synthetic order books for assets. Pathfinding functionality also allows assets to find an efficient path for a trade.
“For example, say you’re looking to trade from BTC into ETH on the XRPL DEX, and there is no ETH/BTC liquidity, but there are ETH/USD, BTC/USD, ETH/XRP, and BTC/XRP pairs. Pathfinding will execute the trade by finding the most efficient path within seconds, via XRP or another bridge asset, where liquidity is best. Since its inception, more than $200 billion has been traded on the XRP Ledger’s DEX.“
Allbridge’s Integration With XRP Ledger Goes Live
Yesterday (April 14), Allbridge announced that it had completed the work on integrating XRPL, which it started in January, thereby making XRPL the 14h blockchain supported by their platform.
The other 13 blockchains that Allbridge supports are Aurora, Avalanche, BNB Chain, Celo, Ethereum, Fantom Opera, Fuse, Harmony, Huobi ECO Chain, Near, Polygon, Solana, and Terra.
Allbridge’s blog post also mentioned that “everaging the XRPL’s native decentralized exchange (DEX) will also allow for the trading of leading stablecoins and DeFi tokens directly on XRP Ledger.”
The Allbridge CEO stated:
“Allbridge became the first bridge to connect XRP Ledger with the expansive DeFi ecosystem. The integration with XRPL allowed us to deeply enhance our cross-chain expertise and offer a truly unique solution to the market. Our end goal is to establish an interconnected cross-chain environment.“
Allbridge went on to say that throughout Q2 2022, it “plans to bring many unique assets to the XRP Ledger, starting with SOLO, a token of the Sologenic ecosystem.”
Sologenic Development Foundation also issued a press release yesterday that said “ollowing a series of upgrades and new components being implemented to the Sologenic ecosystem, a cross-chain bridge has been integrated between the XRP Ledger and the Binance Smart Chain for the flow of SOLO – Sologenic’s ecosystem token – through a partnership with Allbridge.”
Disclaimer
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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