What is the Bridge and why is it necessary?
Octus Bridge is a platform created by the Broxus team that allows users to make cross-chain asset transfers between Everscale and other networks, including Ethereum, BNB Chain, Fantom and Polygon.
The platform also has a DAO governance protocol that gives it an unprecedented level of decentralization for a bridge platform by virtue of it enabling users to directly participate in governance decisions and staking mechanisms.
Octus Bridge is one of the lynchpins of the Everscale DeFi ecosystem, allowing users to freely move liquidity among different blockchains in order to support a wide range of DeFi products.
The Bridge DAO
Octus Bridge, as a platform, does not have a centralized mechanism for making decisions.
Instead, the Bridge has a DAO interface, which was created as a mechanism to facilitate the adoption of certain operational decisions agreed upon directly by users of the Bridge. Users are able to participate via BRIDGE, the platform’s native utility token.
Any stakeholder that has BRIDGE tokens is capable of using their tokens to vote on platform proposals raised in the DAO.
The management of platform liquidity that is locked into the Bridge’s vault is also carried out by means of the DAO protocol.
If a stakeholder has a relatively large share of BRIDGE tokens, they can put their own proposals up for a vote.
In order to participate in the voting process, you have to go to the Governance tab on the Bridge site where you will find all active and completed proposal votes.
To create your own proposal, you have to go to the Create Proposal section of the Governance interface.
In order to create your own proposal, you have to have at least 100,000 BRIDGE tokens.
The BRIDGE token
The main function of the BRIDGE token is the management of the Bridge DAO.
In essence, the BRIDGE token represents your right to participate in the DAO’s voting process.
BRIDGE tokens are also necessary if you want to participate in the validation process on Octus Bridge.
The BRIDGE token provides users with three fundamental values:
- The right to vote (and to manage pool liquidity)
- The right to receive dividends (proportional to the amount staked)
- The possibility to act as a relayer and generate additional income.
You can also participate in farming by adding liquidity to any of the available pairs on FlatQube and receive your rewards in BRIDGE tokens.
You can find more information on farming in the guide that has been dedicated to that topic.
What are relayers?
A relayer is a Bridge validator. Essentially, relayers are stakeholders with additional responsibilities who, accordingly, receive additional rewards.
In order to become an Octus Bridge relayer you have to:
- Stake at least 100,000 BRIDGE tokens on Octus Bridge
- Deploy a set of smart contracts.
This can be done in the Relayers section on the Bridge.
Economy
The yield generated by BRIDGE tokens is proportional to the amount locked into contracts.
The yield received by stakeholders is proportional to the share of their staked stacks and the yield that goes to relayers is distributed evenly among all active relayers. Dividends are paid out in BRIDGE tokens.
Payout of dividends occurs via the following mechanism:
50% of dividends are distributed among all stakeholders (including relayers) in proportion to their amounts of staked BRIDGE tokens. The remaining 50% is distributed evenly among all relayers.
For example:
Let’s say that a liquidity pool holds an amount of tokens that is equal to $10,000,000. In that pool, there are 100 stakeholders and 20 of those stakeholders are relayers. The yield for this pool is 5%. So the total yield will be equal to $500,000, $250,000 of which will be distributed among all stakeholders in proportion to their amounts of staked tokens. The remaining $250,000 will be distributed equally in shares of $12,500 among all relayers.
How to move assets to Everscale via the Bridge
This process is described in detail here.
It should be added that:
If you want to transfer assets to Everscale and you don’t have enough EVER tokens on your account to make a transfer, you can pay the transfer commission in tokens from a different blockchain. Octus Bridge will automatically convert your tokens into EVER, pay for the commission and then send your change to your destination address.
What is the Invisible Bridge and how does it operate?
The Invisible Bridge is a type of Bridge operation that involves two types of transactions:
EVM network > Everscale network > another EVM network
without the need to have an Everscale wallet or tokens in “EVER”
The Invisible Bridge works through a separate node called a “credit processor.”
This node keeps track of transfers in different networks and gives credit in EVER for depositing events, exchanging some part of the transfer to the DEX (Decentralized Exchange) in order to cover commission costs.
Video Guides
- This is a walk through guide made by the Broxus team on the basics of using the Octus Bridge: https://youtu.be/x-7boWwipKA
2. In this walk through we will show you how to easily transfer assets from an outside network to Everscale: https://youtu.be/4NtWe-BL5TQ
Enjoy!
