Have you ever bridge tokens to no where? Allow me to explain.
What is Bungee?
I used Anyswap/ Multichain and Warmhole or portal brigdes. I notice very popular multichain bridge, it lets you swap most top tier tokens from one chain to other without any concept of liquidity on destination chain. I swapped BTC to find out destination chain does not have a liquidity especially like Warmhole Bridge or portalbridge give you Warmhole wrapped BTC -- and there is no liquidity to sell it other token. I end up losing gas fees to swap out tokens to find out it is a bridge to no where. I had to pay gas fees to bridge those tokens back in to the originating chain. Just wasting gas fees twice.
Bungee at its core, is a bridge aggregator. It can be thought of as 1Inch, or Paraswap for cross-chain swaps. By also integrating DEXs & DEX aggregators, Bungee enables easy & efficient cross-chain swaps for users. Bungee supports Polygon, Optimism, BSC, Fantom, Arbitrum, Avalanche, Aurora and Gnosis chains as of shooting this video.
In a multi-chain world with multiple bridges & DEXs, there are multiple ‘routes’ that can be taken to move across chains. Say Alice has DAI on Arbitrum, but wants ETH on Polygon instead. Some routes she can take includes:
1) Swap DAI ↔ ETH on 1Inch then Bridge ETH Arbitrum → Polygon via Hop Protocol
2) Swap DAI ↔ ETH on Paraswap then Bridge ETH Arbitrum → Polygon via Connext Protocol
3) Bridge DAI Arbitrum → Polygon via Hyphen then Swap DAI ↔ ETH on Uniswap
4) Bridge DAI Arbitrum → Polygon via Anyswap then Swap DAI ↔ ETH on Sushiswap
Bridge and Swap on Bundge.exchange
Selecting the best route is insanely hard! Each route comes with a different journey time (bridging time), toll cost (bridging cost), fuel cost (GAS) & risk (security), and these can change with time!
Bungee think of it as 1Inch of bridge with one-stop app for all your bridging needs. Using Bungee enjoy the best routes for your bridging journey. Bungee allow users to optimize their route based on:
Maximum output on the destination chain
Minimum GAS fee
Lowest Bridging Time
Security (comming later not supported yet)
I showed the classic bungee.exchange that Beta-v2 it support chains such as Polygon, Optimism, BSC, Fantom, Arbitrum, Avalanche, Aurora and Gnosis. Next, I showed the multitx.bungee.exchange. As of shooting this video, multitx.Bungee.exchange experimental. The multi tx flow supports swaps on the destination chain to enable any-to-any token bridging. This is experimental and in early-beta. Destination swaps may result in a lower than quoted output due to price changes while bridging on the destination chain.
First, I connect my Metamask Web3 wallet. I will provide a link on how to setup Metamask wallet. In my example, I want to bridge from Polygon to Fantom, WETH 0.11 to WBTC. I get 0.008 WBTC with bridge fee of 0.00002 WBTC. It uses Celer Bridge as behind the scene. If I want to bridge into WETH, I get 0.111673 WETH with fees of 0.0003 WETH with gas fees of 0.0067 MATIC (or $0.006). While trying to Swap WETH from Polygon into Fantom chain as USDC or FRAX on the Multitx.Bungee.exchange experimental one, I got to option of bridge. Bungee picks the one with least fees and better conversion rate where I get most amount of USDC or FRAX at the destination chain. That is the power of Bungee where it finds all possible routes and pick the one with least conversion fees.
When I tried to convert into FRAX in classic beta-v2 version. I get following message:
We could not find any routes for your desired transfer. We do have some insights on why that could be.
A route for this transfer simply does not exist currently. We are working hard on integrating more bridges, look out for updates and do try again.
Moving tokens across chains costs money. This cost is deducted from the sending amount, if the amount is too low to cover the expenses, we may not be able to compute a route for you.
Bungee Fees
Official Bungee FAQ says it does not charge fee for the bridge but I notice I had to pay $0.50 to $0.70 depend on which token I am bridging too. I am assuming this fee that website show is the Swap token fee. Bungee you need to pay are Gas fees (for transactions), Swap fees (fees for swapping tokens if needed) and Bridge fees (fee paid to bridging provider).
Risks on Bungee
In Summary, there is always risk of Bridge token contracts are open unlimited swap. Make sure to close unlimited swap. Remember the Warmhole Bridge hack. Also, there is risk where you might swap a coin like USDC into Harmony chain where its bridge has been hack and USDC has been depegged in Harmony as of shooting this video. Lucky Harmony is not supported as of shooting this video. You do not want to Bridge tokens into a Hacked chain where tokens are lost pegged.
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