What is Token Bridging?

Bridging refers to the process of connecting two or more blockchain networks, allowing assets to move between them. A bridge is a technology that enables interoperability between different blockchain networks, allowing users to access and use assets that exist on different chains.

Bridging is typically accomplished through the use of specialized protocols or platforms that facilitate the movement of assets between chains. For example, a user may want to move ETH to the Optimism Chain. In order to do so, they would need to use a bridge that connects the two chains, allowing the token to be transferred from one chain to the other.

Bridging can be an important feature for decentralized finance (DeFi) applications, as it allows users to access assets and liquidity across multiple blockchain networks. It can also be used to facilitate cross-chain interactions between different dApps, enabling the creation of more complex and interconnected decentralized systems.

Optimism

Optimism Network is a layer 2 scaling solution for Ethereum that uses optimistic rollups to increase transaction throughput and reduce gas fees. It is a decentralized protocol that aims to make Ethereum more efficient, affordable, and accessible to users.

Optimism Bridge, on the other hand, is a key component of the Optimism Network. It is a two-way bridge that allows users to transfer their assets and data between Ethereum and the Optimism Network. The bridge enables seamless interoperability between the two networks, allowing users to take advantage of the benefits of both platforms.

In essence, the Optimism Bridge serves as a gateway that connects the two ecosystems, allowing users to transfer their tokens, interact with dApps, and participate in DeFi protocols on either network. It is an important tool for developers and users who want to take advantage of the scalability and affordability of the Optimism Network while still leveraging the security and reliability of the Ethereum blockchain.

Axelar

Axelar Network is a cross-chain communication protocol that aims to enable seamless interoperability between different blockchain networks. It is a decentralized network that allows users to transfer assets, data, and value between different blockchain ecosystems.

Axelar Satellite is a component of the Axelar Network that serves as a decentralized messaging and notification system. It enables the transfer of messages and notifications between different blockchain networks, providing a communication layer that allows users to interact with different chains.

Axelar Squid Router is another component of the Axelar Network that acts as a routing system for inter-chain communication. It routes messages and transactions between different chains using a decentralized routing algorithm that ensures reliability, security, and efficiency.

The main difference between Satellite & Squid is that on Satellite, users can transfer an asset from 1 chain to another chain, but on Squid, users can transfer an asset from 1 chain to ANOTHER ASSET on another chain.

Together, these components enable the Axelar Network to provide a seamless and decentralized way for users and developers to interact with different blockchain networks.

What is Liquidity Providing?

In the context of crypto, liquidity providing refers to the act of providing funds to a decentralized exchange (DEX) or an automated market maker (AMM) platform to facilitate trades between different cryptocurrency assets.

When a user provides liquidity, they deposit equal amounts of two tokens into a liquidity pool, such as ETH and DAI, and receive a proportional share of the pool's trading fees. These tokens are used to provide liquidity for trading pairs on the platform. Liquidity providers essentially act as market makers, ensuring that there is enough liquidity in the pool for traders to buy and sell assets.

Liquidity providers take on the risk of market volatility, as the value of their deposited tokens can fluctuate over time. However, they can earn a return on their investment through trading fees and incentives offered by the platform.

Liquidity providing is important for the growth and sustainability of decentralized finance (DeFi) platforms. It helps to ensure that there is sufficient liquidity for traders to buy and sell assets, and enables the creation of new trading pairs. By providing liquidity, users can earn a return on their investment while also contributing to the growth of the ecosystem.

What is Swapping?

In the context of crypto, swapping tokens refers to the act of exchanging one cryptocurrency asset for another through a decentralized exchange (DEX) or an automated market maker (AMM) platform.

Swapping tokens is typically done through a liquidity pool, where users can deposit two different tokens and receive liquidity provider (LP) tokens in return. These LP tokens represent a share of the liquidity pool, and can be used to swap between the two tokens in the pool. For example, if a user deposited ETH and DAI into a liquidity pool, they would receive ETH-DAI LP tokens, which they can then use to swap between ETH and DAI.

Swapping tokens is an important aspect of decentralized finance (DeFi) as it enables users to trade between different assets without the need for a centralized exchange or intermediary. It is a more trustless and decentralized alternative to traditional centralized exchanges, which can be subject to hacks, outages, or regulatory restrictions.

Swapping tokens can also be used to take advantage of price differences between different assets, and to rebalance a portfolio based on market conditions. However, users should be aware of the risks associated with trading cryptocurrencies, including market volatility, impermanent loss, and smart contract risks.

Uniswap

Uniswap is a decentralized exchange (DEX) protocol that operates on the Ethereum blockchain. It enables users to trade cryptocurrencies without the need for a central intermediary or order book.

Uniswap uses an automated market maker (AMM) model to provide liquidity for trades. This means that users can trade between different cryptocurrencies based on the ratio of their values in a liquidity pool, which is maintained by smart contracts on the blockchain. Anyone can provide liquidity to a Uniswap pool by depositing two different tokens in equal value, and they receive liquidity provider (LP) tokens in return, which they can use to withdraw their share of the pool's trading fees.

Uniswap is known for its user-friendly interface and low fees, which are made possible by the automated market maker model. It is also popular for enabling users to easily create new trading pairs by depositing equal amounts of two tokens into a liquidity pool.

Uniswap has been instrumental in the growth of decentralized finance (DeFi) by enabling users to trade and access liquidity in a decentralized and permissionless manner. It has also inspired the creation of other decentralized exchanges and liquidity protocols on the Ethereum blockchain and beyond.

Velodrome

Velodrome is a decentralized exchange (DEX) protocol that operates on the Ethereum blockchain. It is designed to provide fast and secure trading for ERC-20 tokens.

Velodrome uses an automated market maker (AMM) model to provide liquidity for trades, similar to other popular DEX protocols such as Uniswap and SushiSwap. This means that users can trade between different cryptocurrencies based on the ratio of their values in a liquidity pool, which is maintained by smart contracts on the blockchain. Users can provide liquidity to a Velodrome pool by depositing two different tokens in equal value, and they receive liquidity provider (LP) tokens in return, which they can use to withdraw their share of the pool's trading fees.

Velodrome also uses a Layer 2 scaling solution called Optimistic Rollups, which allows for fast and low-cost transactions. This enables Velodrome to handle a high volume of trades without congesting the Ethereum blockchain.

Velodrome has been designed to provide a smooth and seamless trading experience for users, with a simple and user-friendly interface. It also offers advanced trading tools such as limit orders and stop-loss orders.

Osmosis

Osmosis is a decentralized exchange (DEX) protocol built on top of the Cosmos blockchain ecosystem. It is designed to enable fast and low-cost trading of digital assets, particularly for tokens on the Cosmos network. Osmosis allows for the creation of customized liquidity pools that enable the trading of any Cosmos-SDK-compatible tokens.

Osmosis uses an automated market maker (AMM) model, which enables users to trade between different cryptocurrencies based on the ratio of their values in a liquidity pool, which is maintained by smart contracts on the blockchain. Users can also provide liquidity to a pool by depositing equal values of two different tokens, and they receive liquidity provider (LP) tokens in return, which they can use to withdraw their share of the pool's trading fees.

In addition to the core DEX functionality, Osmosis also features several advanced trading tools such as limit orders and stop-loss orders, as well as a governance system that allows users to participate in the decision-making process for the platform.

Osmosis aims to provide a reliable, fast, and secure trading platform for decentralized finance (DeFi) users on the Cosmos network. Its unique design allows for customized liquidity pools, which can promote greater liquidity and trading volume for Cosmos-based tokens.

Dashboard Introduction

In summary, in this dashboard, we are going to mainly take a look at Optimism and Axelar bridgers crossover (Ethereum wallets) as well as their swap and liquidity-providing activity on Ethereum DEXs and Osmosis.

This dashboard has 3 main tabs:

1- Optimism + Axelar Bridgers: an overview of Ethereum addresses that have used both Optimism & one or more Axelar bridgers.

2- DEX Usage (Swap): The swapping activity of users identified in the first tab (Optimism + Axelar Bridgers) in DEX.

2- DEX Usage (Liquidity Providing): The liquidity-providing activity of users identified in the first tab (Optimism + Axelar Bridgers) in DEX.

Dashboard by Ali3N

Discord: Ali3N#8546

Twitter: Alik_110

Email: Alik110.72@Gmail.com

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