How can I use Skybridge?
Discover the differences between metanodes, liquidity providers, and users in Skybridge.
There are three types of participants in a Skybridge network:
- 1.Metanodes – They stake SWINGBY to participate in swaps will receive swap fee / n. This process is also known as 'bonding'.
- 2.Liquidity providers – They deposit one of the two bridged assets (e.g., WBTC/BTC) in the 'float' to receive swap fees that are proportional to their deposited amount of tokens. Any party can do this without any requirement to operate a metanode. This process is also known as 'float staking'.
- 3.Users – They move assets between blockchains. These can transfer BTC to Ethereum (through WBTC tokens at first) and vice versa, by paying a network fee that is collected by both metanodes and liquidity providers.
Swingby's Skybridge node operators ('metanodes') incur two primary costs:
- 1.Operational costs for running a node, e.g., server costs.
- 2.Staking upfront costs since node operators have to purchase and hold SWINGBY tokens that will be bonded to their full node. This bond helps them secure the network and align network interests with their financial stake.
Float staking is a concept specific to Skybridge networks. Deposits on both source blockchain and target blockchains are used to allow for simple swaps, thus, reducing the swap fee to be as low as possible for users.
The system is built around a LP token named Swingby BTC ("sbBTC"), which represent a stake in the total liquidity of a two-asset bridge. This token runs on Ethereum as an ERC20 compliant token that can be incorporated and traded in other DeFi protocols like Uniswap or SushiSwap.
Users are individuals and entities wishing to move their bitcoins to pegged tokens like WBTC on the Ethereum blockchain.
Last modified 2yr ago