Table of Contents:

1. Introduction

   • What is Across Protocol (ACX)?

2. The Challenges Across Protocol Solves

   • Blockchain Fragmentation

   • High Costs and Slippage

   • Liquidity Isolation

3. Core Features and Benefits

   • Intents and Optimistic Oracle

   • Capital Efficiency

   • Safety and Speed

   • Liquidity and Reward Mechanisms

4. How Across Protocol Works

   • Single Liquidity Pool Model

   • Spoke and Hub Pool Architecture

   • Bonded Relayers and UMA’s Optimistic Oracle

5. The $ACX Token: Governance and Incentives

6. Recent Developments

   • Across V3 Launch

   • Integration with Aleph Zero

7. Conclusion

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Introduction

Blockchain has unlocked countless opportunities for us, but its rapid evolution has also created silos between other chains & networks. Across Protocol emerges as a fourth-generation bridge ecosystem designed to address these barriers. Leveraging UMA’s optimistic oracle and groundbreaking intent-powered design, Across Protocol aims to enable seamless, capital-efficient, and secure cross-chain transactions

Whether you’re a developer, liquidity provider, or casual crypto enthusiast ( like me xD ), this blog will guide you through everything you need to know about Across Protocol and its transformative role in the whole blockchain ecosystem

The Challenges Across Protocol Solves

•  Blockchain Fragmentation

           Nowadays in crypto space, switching between Layer 1 (L1) networks and Layer 2 (L2) rollups can be complex, time-consuming as well as costly. Across Protocol addresses this fragmentation by creating a unified ecosystem for seamless asset and data transfers.

• High Costs and Slippage

Slippage, or the price difference when executing orders, can lead to significant financial losses for decentralized exchange (DEX) users. Across Protocol’s no-slippage fee model ensures users retain the full value of their transactions, making it a cost-effective solution.

• Liquidity Isolation

Many protocols operate with fragmented liquidity pools, limiting access to deep liquidity and increasing inefficiencies. Across combines liquidity across chains, ensuring traders, developers, and users can tap into a larger and more robust liquidity ecosystem

Core Features and Benefits

• Intents and Optimistic Oracle

At the heart of Across Protocol lies its intent-powered mechanism, enabling users to dictate transactions across chains from a single platform. These intents operate using UMA’s optimistic oracle, a trusted system for verifying cross-chain transactions with fraud-proof mechanisms.

Example: Suppose Alice wants to transfer tokens from Ethereum ( $ETH ) to Polygon. Across Protocol processes her intent, verifies it through the optimistic oracle, and ensures a seamless transfer without intermediary complexities.

• Capital Efficiency

• Single Liquidity Pool: Across Protocol consolidates liquidity into one pool on Ethereum’s mainnet, simplifying liquidity management and enhancing scalability.

• Innovative Fee Model: An interest rate-based fee model reduces costs for users while boosting yields for liquidity providers.

• Safety and Speed

Across’s optimistic approach ensures security by correcting false claims via dispute resolution mechanisms. Transactions are processed in under two minutes, with next-block bridging under development.

• Liquidity and Reward Mechanisms

Liquidity providers earn fees and LP tokens, incentivizing their participation. Additionally, referral and reward-locking programs encourage long-term ecosystem engagement.

How Across Protocol Works

• Single Liquidity Pool Model

By leveraging a single liquidity pool, Across eliminates the inefficiencies of managing multiple fragmented pools. Users benefit from reduced costs and enhanced yield opportunities.

• Spoke and Hub Pool Architecture

• Spoke Pool: Users deposit funds into a Spoke Pool on their source chain, specifying the destination chain and fee.

• Hub Pool: Relayers execute the transfer, and once verified, reimbursement occurs via the Hub Pool.

More Info : https://across.to/blog/Across-Technical-Ingenuity-Deep-Dive-The-Universal-Bridge-Adapter

• Bonded Relayers and UMA’s Optimistic Oracle

Relayers compete to process user transactions, and the best performers are rewarded. UMA’s optimistic oracle ensures secure transaction verification, using fraud-proof mechanisms to safeguard assets

The $ACX Token: Governance and Incentives

$ACX is an ERC20 token that controls the Across.to cross-chain bridge. Across connects L2s and rollups to L1 Ethereum, and is secured by UMA’s optimistic oracle. It is optimized for capital efficiency with a single liquidity pool, a competitive relayer landscape, and a no-slippage fee model.

The $ACX token powers Across Protocol’s governance and incentive mechanisms:

• Governance: Token holders can vote on proposals and influence protocol upgrades.

• Incentives: Liquidity providers and participants in referral programs earn $ACX rewards, promoting active ecosystem participation.

Key Stats:

• Max Supply: 1 billion tokens

• Utility: Governance, fee payments, and rewards

• Market Metrics: As of December 16, 2024:

  Price: $0.8062

  Circulating Supply: 443 million tokens

  Market Cap: $347 million

• Total Value Locked (TVL): $237.9 million

• Transaction Volume: Over 10 million transactions

Supported Networks: Ethereum, Arbitrum, Optimism, Polygon, and more 

Source : https://defillama.com/protocol/across

Recent Developments

• Across V3 Launch

Across Protocol recently introduced its V3, the first intents-based interoperability protocol. Key highlights include:

• Across Settlement: A modular settlement layer for cross-chain intents.

• Across+: A chain abstraction tool integrating bridge transactions into user actions, enhancing user experience

• Integration with Aleph Zero

The protocol has expanded to Aleph Zero’s Arbitrum-Orbit chain, offering fast, cost-effective, and secure cross-chain bridging. This deployment enhances fast withdrawal capabilities and user convenience.

• ERC-7683

ERC-7683 is the standard for crosschain Intents on ETH. Ethereum’s Layer 2 (L2) solutions have solved scalability, enabling users to transact quickly and cheaply. However these advancements have also introduced fragmentation. That’s where Intents come in—allowing actions to flow seamlessly across chains.

• Last but not least, $ACX listing on BINANCE 🔥

With its commitment to solving crypto’s biggest challenges, Across Protocol is paving the way for a more unified and efficient blockchain ecosystem. Are you ready to bridge the gap?

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A Blog from @ch04niverse