Introducing NorthBridge — Seamless Cross Chain Protocol
Introducing “Northbridge”; another creation from KillSwitch, a faster and seamless cross-chain protocol! Ending all liquidity shortages.
You might be wondering, how does it work? What problem does it solve? Well, in this article we’ll be answering them all.
What is NorthBridge?
Northbridge is a bridge protocol that allows users to bridge back and forth between chains/networks. Currently available chains include Binance Smart Chain, Ethereum, BitKub Chain, Polygon(MATIC), KuCoinChain, and REI chain.
How NorthBridge Works?
KillSwitch has designed a system where farmers transfer through a Bridge similar to an original chain.
Its working principle is to “Lock Token” in a Smart Contract and “Mint” out the tokens from the other side of another Chain.
Once the action of transferring back, the bridge will “Burn” the tokens and “Unlock” the tokens that were locked.
For Example:
If users want to transfer MATIC from Polygon chain to BSC through Northbridge, they will need to use MATIC to bridge, users will then receive kMATIC tokens from BSC in which Northbridge will “Lock” MATIC token then “Mint” kMATIC to BSC. Users can also exchange kMATIC tokens with any other type of token through https://foodcourt.finance.
Vice Versa, if you want to “Bridge” kMATIC (from BSC) back to the Polygon chain, the system will “Burn” kMATIC and unlock MATIC to transfer to your wallet.
The long existed problem of cross-chain protocol
Cross-chain is one of the issues for farmers, in times, farmers face supply shortages therefore transferring back and forth might be an issue.
How does NorthBridge solve supply shortages?
It does so by leveraging the “Arbitrage” method
To make it easier to understand, let’s use an analogical example,
Suppose Country A has a higher gold price than Country B by 10% due to the fact that the demand for gold in Country A is higher. Speculators will foresee a profitable opportunity of buying gold in Country B and selling it in Country A to profit from the margin of difference in price.
This process is known as “arbitrage” which is perceived as trading the difference in matters of a second but for this analogy, the arbitrage of gold has to take into account other instances as well such as, travel time, and shipping costs.
Unlike the DeFi world where transactions can be made within seconds.
Back to NorthBridge…
Suppose we want to cross BSC to Polygon, We’ll need to purchase kMATIC to cross to MATIC on the Polygon’s side to cross the BSC to Polygon and therefore the price of kMATIC will subsequently increase.
When the price of kMATIC increases but is not equivalent to the price of MATIC, there will be speculators who will want to leverage arbitraging from MATIC tokens from POLYGON crossing to kMATIC and then selling it causing the price of both tokens to be similar.
Hence this is why Northbridge has an indefinite amount of supply at all times.
Tokens Supported by NorthBridge
BSC supports the following:
- BNB, kKUB, COUPON, DOLLY, DAI, UST, kTUK, WMMP, SZO, CAKE, kMATIC, kUSDC
KUB Chain supports the following:
- kBNB, KUB, kCOUPON, kDOLLY, kDAI, kUST, TUK, kMMP, kSZO, kCAKE
Polygon Chain supports the following:
- MATIC, USDC
KuCoin Chain supports the following:
- kKCS
REI Chain supports the following:
- kREI, BNB, BUSD, USDC, USDT, Coupon, ALE, CRAFT, Lorem, RYC
NorthBridge available today! Click here:
👉 https://northbridge.link/
Transaction Fee
Fixed transaction fee for crossing chains are as follow:
- BSC to any other Chain:
- Fee 0.004 BNB - KUB Chain to any other Chain:
- Fee 1.5 KUB - Polygon Chain to any other Chain:
- Fee 1.0 MATIC
* Note: Transactions fee may be subjected to change depending on situations.
📞KillSwitch Official Channels
Website
Medium
GitBook
Twitter
Telegram International
Telegram Thai
