Xbridge Whitepaper
  • 👋X Protocol Whitepaper
  • Overview
    • 🧐The Problem
    • 💪The Solution
    • 💡What we do
    • ✨Our Features
  • X Protocol Features
    • 🚀Intent-Centric Framework
    • 🚀Optimal Routing
    • 🚀Intent Encoding
    • 🚀Solver
    • 🚀Preventing MEV
    • 🚀Restaking Protocol
    • 🚀AVS
    • 🚀EigenDA
    • 🚀Relayer
    • 🚀Slash Mechanism
    • Conclusion
  • Appendix
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  1. Overview

The Problem

The current cross-chain protocols or applications are facing two main challenges: cross-chain assets and cross chain protocols.

Cross-Chain Assets Challenges:

  • Current bridges are applying fixed fee structure, which breaks the equilibrium of market supply and demand. Users find it difficult to get lower fees while the LPs are discouraged from providing liquidity. Hence, cross-chain transactions lack flexibility and liquidity flow is heavily impacted.

  • Liquidity funds are locked within the pools, causing large amounts of funds to be not fully utilized.

Cross-Chain Protocols Challenges:

  • The current AMP protocol (Arbitrary Message Passing, AMP) specifies the executor and fixes the details of Calldata in the destinate chain, causing the data size to be huge and high transaction fees.

  • The systems are not resistant to MEV attacks. Despite RPC nodes being deployed, MEV attackers can still infer the exact EVM execution codes based on the Calldata from the source chain. Therefore, the transactions are often being manipulated by the attackers who have the prior information and launch sandwich attacks to profit from those.

  • There are some issues with the verification process of underlying protocols too, especially on the trust issue of oracle and relayer.

The issues above have contributed to the low efficiency and security of current cross-chain protocols.

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Last updated 11 months ago

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