Read PicWe on Movement in one article: Creating the optimal full-chain liquidity infrastructure

The native characteristics of the chain are causing the liquidity of the world on the chain to be too dispersed, fragmented and seriously unbalanced. According to statistics, currently about 80% to 90% of liquidity is locked in EVM applications, which brings challenges to the establishment and development of emerging ecosystems and inhibits the innovation of Web3. Many emerging ecosystems have to fall into a continuous battle for liquidity due to the lack of good multi-chain interoperability solutions.

An obvious example is that the expected airdrops and wealth creation effects of each emerging Layer 2 and its related ecological applications can attract the attention of users in the circle, but the cost and threshold of entering new public chains prohibit most users. Most of these users come from mature ecosystems such as Ethereum and BNB Chain. However, the high cost and high threshold of traditional cross-chain bridges prevent most users from participating. In the post-DeFi era, the industry has been exploring how to achieve efficient, safe, and low-cost flow of assets between multiple chains while providing users with a seamless experience.

The PicWe project is one of many explorers. The project uses the Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP), Dynamic Liquidity Matrix (DLM), and Programmable Token Transfer . Based on a series of technical solutions, it took the lead in launching the industry 's first cross-chain transaction model featuring bridgeless and trustless transaction model (CATM) on Movement to create the next generation of full-chain liquidity infrastructure.

As an innovator in the cross-chain field, PicWe's solutions have been widely recognized by the market. It is reported that the project stood out from 2,100 participating projects in the "Battle of Olympus" hackathon event organized by Movement Labs and won the first prize in the DeFi track. Meanwhile, PicWe has shown impressive growth over the past three months. Since its launch, the project has attracted 727,000 users and processed 221,000 interactions from 163,000 unique addresses, with a total transaction volume of $326 million.

As an outstanding representative of cross-chain solutions in the Movement ecosystem, PicWe has not only consolidated its leading position in the Movement ecosystem, but is also rapidly emerging as one of the best full-chain liquidity infrastructures.

How does PicWe achieve bridge-less cross-chain interaction?

In traditional cross-chain transactions, cross-chain bridges usually play a more important media role. They usually help traders realize cross-chain transfers of assets between different chains through a series of methods such as locking and packaging. Although traditional cross-chain bridges made great contributions to the liquidity interaction of the early on-chain world, their drawbacks are also very obvious.

In fact, a cross-chain transaction based on a cross-chain bridge usually involves a series of operations such as locking, minting, and redemption, and each step usually requires the user to pay a Gas fee, so a cross-chain will not only Users bring relatively high friction costs, and it also adds many tedious transaction steps and higher transaction delays. Of course, traditional cross-chain bridges even exacerbate the fragmentation of liquidity. Some cross-chain solutions choose to store assets in the form of independent packaging tokens on different chains, such as WBTC. This division reduces the overall value of assets. Liquidity and availability.

A more concerning issue is security. Many cross-chain bridges rely on centralized or semi-centralized custodians to ensure the security of assets locked on the source chain, which results in extremely high single-point risks. Even if some PoS verification groups are introduced, as the liquidity of a single chain is reduced, the cost of attack will be greatly reduced, thereby increasing its risk of being attacked by malicious actors. In fact, the early exploration of interoperability triggered a series of security incidents that not only caused controversy, but also caused many people to lose confidence in it.

Previously, Arjun Bhuptani, the founder of Connext, proposed the concept of "interoperability trilemma", pointing out that when achieving interoperability between blockchains, it is difficult to satisfy the following three characteristics at the same time: universality (in both chains) The ability to transfer arbitrary data between them), scalability (the ability to be quickly deployed on heterogeneous chains), and trustlessness (minimizing trust assumptions).

It can be seen that the cross-chain bridge does play a very important role in the development of the industry, but it is only a benefit measure and is certainly not the final state of the cross-chain solution.

Figure: Cross-chain impossible triangle

For PicWe, we did not choose to continue innovating on the basis of the original cross-chain bridge idea. Instead, we introduced a series of solutions such as state channels and liquidity incentives to build a decentralized cross-chain interaction system that does not require a media. Users Multi-chain asset cross-chain transactions only need to be verified on the source chain.

Chain Abstract Transaction Model (CATM)

The PicWe cross-chain trading system is mainly driven by the Chain Abstract Transaction Model (CATM), which deploys contracts across multiple chains to update and coordinate transaction status, and builds a unique full-chain non-access bidding orchestration protocol. , can serve two different chains at any time.

In fact, the cross-chain liquidity of traditional cross-chain bridges mainly relies on locking sufficient assets in the source chain and the target chain respectively to ensure response at both ends of the chain. When the target chain's asset reserves are insufficient, cross-chain will become inefficient. Even difficult to achieve. PicWe's CATM model does not rely on locking or minting assets to ensure liquidity, but "seeking from the outside" by building an incentive LP system.

Specifically, the contract deployed by PicWe, whether on the source chain or the target chain, can be understood as a full-chain liquidity pool, which is provided by the LP role to provide liquidity and incentives.

When a user with cross-chain transaction needs deposits assets into the source chain contract, it is similar to injecting assets into the liquidity pool of the source chain, and selects the corresponding target chain, fills in the address, and sends a single-chain signature to the entire chain. The no-access bidding orchestration protocol generates orders after completing multi-chain payment requests. After the contract records the user's assets, the distributed relay will be responsible for safely transmitting the user's transaction status on the source chain to the target chain. The information includes transaction date (date), ledger (ledger), order details, etc., implementation status and Transfer of data.

For the target chain contract, after verifying whether the signature of the source chain contract is valid and checking whether the source chain transaction meets the required number of block confirmations (delayed confirmation to prevent risks such as double spending, oracle manipulation, flash loans, etc.), the target chain The contract pool finally releases the assets at the address specified by the user.

The most important thing is that in the CATM system, there is continued ability to rebalance liquidity.

In the past, LP users will be able to obtain Farming incentives by providing liquidity to contract pools on different chains to ensure that the contract pools or capital pools on different chains have sufficient liquidity and remain dynamic.

When the liquidity on the target chain is insufficient, PicWe seeks more assets from LP or other liquidity providers through the Dutch auction. The characteristic is that a price is initially set for an asset, and as the liquidity becomes more and more Sufficient, causing the token price to continue to decline (the incentive effect continues to decline). For LP, the difference in liquidity represents an arbitrage opportunity. The higher the difference, the greater the arbitrage opportunity. So when a Dutch auction transaction starts, it will instantly attract a large number of LP arbitrageurs to participate, ensuring that the target chain contract pool Restore liquidity as quickly as possible while ensuring optimal cost for liquidity replenishment.

Based on this system, if a certain chain has insufficient liquidity, PicWe will also transfer the assets of other chains to the chain that lacks liquidity through the above-mentioned Rebalance mechanism to ensure sufficient and balanced liquidity among different chains.

Thanks to PicWe 's cross-chain liquidity and the liquidity difference between different chains, liquidity providers can earn income on multiple chains at the same time, breaking through the limitations of a single-chain capital pool. Similarly, investors can aggregate all support Chain liquidity gains to optimize returns.

So we can see that in the above process, PicWe’s solution does not involve the native minting and redemption of tokens, nor does it require custody of users’ assets, and PicWe itself is directly based on programmable token transmission technology from the source chain to the target chain. It transmits native asset information, maintains the native status and liquidity integrity of assets in the source chain and target chain, maximizes the cross-chain efficiency of assets, and maintains complete decentralization of the entire process.

"Multiple, fast, good and economical" bridge-free solution

Based on the above technical characteristics, PicWe’s bridgeless solution is showing the advantages of “more, faster, better, and more economical”.

many

Traditional cross-chain solutions are limited by the types of tokens provided by the liquidity pool and cannot support cross-chain purchases of medium and long-tail assets. For example, it is difficult for us to directly use the USDT of the Base chain to buy the PNUT assets of the Solana chain.

This is like shopping in a supermarket or warehouse. Users can only purchase designated products (Token) provided by the supplier (LP). Due to the capital cost of stocking up, the types of goods available in supermarkets and warehouses are limited. If you want to purchase any product, you can only do so through online P2P.

PicWe's Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP) is creating a decentralized "online mall" that allows users to purchase any Token on any chain, that is, through PicWe, users can use Use USDT on any chain to purchase any asset on any chain.

quick

Traditional cross-chain solutions require users to first exchange the assets on the source chain (such as USDT) for assets (such as ETH) accepted by the cross-chain bridge before cross-chain can be carried out. After the cross-chain is completed, you still need to exchange the assets into the assets you want to buy (such as converting ETH into PEPE). The entire transaction process has too many links, the chain is too long, and the user experience is poor.

The process of purchasing full-chain assets through PicWe only takes one step to complete on the chain, and there is no need for cross-chain or Swap in the whole process. Both the EVM chain and the heterogeneous chain can complete transactions within 1 minute.

good

PicWe’s bridgeless solution breaks the constraints of the impossible triangle across chains. It achieves on-chain interaction of the entire chain of assets in a completely decentralized manner, avoiding the risk that cross-chain protocols can use and transfer user assets in the past. This bridgeless solution “does not touch” user assets from beginning to end, which can not only prevent project parties from doing evil, but also avoid hacker attacks.

Province

The bridgeless solution can save cross-chain bridge fees, Swap fees and Gas fees. The current popular intention transactions and chain abstraction solutions only complete complex cross-chain operations on behalf of users, and the users still need to bear the multiple Swap, cross-chain, Gas and other costs incurred. Through PicWe, users essentially pay USDT and directly purchase Tokens on the target chain, which can save all intermediate fees and the cost of each transaction can be controlled within 1 USDT.

Currently, PicWe has taken the lead in practicing this solution on the Movement stack. Based on the Movement network, PicWe supports users to seamlessly trade assets on any blockchain. For example, traders can use USDT on the Movement network to purchase other chains. Any token on, including BTC on the Bitcoin blockchain.

PicWe’s Capital Efficiency

Through the unique Dynamic Liquidity Matrix (DLM) technology , PicWe has extremely obvious advantages over traditional cross-chain solutions in terms of cross-chain capital efficiency. The LP pool provided by PicWe is no longer a traditional single trading pair pool. Its USDT pool provides liquidity of different trading pairs every moment. And it is provided on demand. Only when the user submits a transaction requirement for a certain Token, the USDT in the pool will provide the liquidity of the corresponding Token, which greatly improves the income of the LP pool.

We see that in the picture above, the left side is the traditional liquidity plan and the right side is PicWe’s plan.

In the traditional liquidity plan example, the total liquidity is $18B, but this liquidity is dispersed among different chains and bridges. The total liquidity is $18B, but this liquidity is dispersed among different chains and bridges. between:

• Each chain (such as Chain A, Chain B, Chain C, Chain D) each holds $4B liquidity, and the bridge (such as Bridge AB and Bridge CD) each holds $1B liquidity.
• There are multiple assets (Token1, Token2, Token3, Token4) on each chain, and the liquidity of each asset is $1B.

We can intuitively see that the liquidity of traditional cross-chain bridge solutions is extremely dispersed, and the liquidity between chains and bridges cannot be interconnected, resulting in low capital utilization. When the liquidity on a single chain or bridge is not enough to meet the demand for large transactions, it is easy to cause price slippage, and the assets on each chain are independent of each other and difficult to integrate and utilize.

In PicWe's solution, the chain is abstracted through a dynamic liquidity matrix, and the dispersed $18B liquidity is integrated into an overall pool that can be called across chains. The assets on each chain (Token1, Token2, Token3, Token4) Interoperability is achieved through the PicWe system. After the liquidity is unified, users on each chain can share the overall liquidity and avoid transaction failures or high slippage caused by insufficient assets on the chain.

At the same time, based on the CATM trading system and dynamic liquidity matrix, PicWe does not need to inject invalid liquidity into each chain, significantly optimizing capital allocation. At the same time, it can also provide liquidity providers with up to 30% APY through PicWe's protocol. From the current stage, the LP income provided by mainstream DEX usually does not exceed 10%, and due to sufficient liquidity all year round, there are not many considerable LP arbitrage opportunities.

PicWe 's income comes from poor liquidity. The liquidity difference between different assets and different chains must exist for a long time. This means that PicWe will be able to provide considerable arbitrage returns to LP users all year round, and thus ensure the cross-chain system. efficiency, meeting the needs of multiple roles at the same time.

B2B2C

From the perspective of C-end users, PicWe can be a good asset cross-chain, cross-chain transaction and income tool, but PicWe is not just To C, but hopes to follow the B2B2C route.

In fact, PicWe is not only defined as a tool, but defines itself more as an underlying cross-chain liquidity facility. It allows all on-chain applications to be integrated with it through an open SDK, and uses its technical solutions to obtain the full chain The ability to expand.

For example, for a DEX, it can be combined and integrated with PicWe based on PicWe's SDK. The DEX will be able to further provide users with cross-chain trading capabilities, and even further provide some innovative trading products and derivatives product sections based on this to improve platform functions and pass Capture users with better potential revenue. For PicWe, by becoming a lower-layer facility and serving B-side applications, it can indirectly incorporate the users of these partners into the ecosystem and accelerate the large-scale adoption of its solutions.

Summarize

PicWe is reshaping the cross-chain interoperability system and creating a new solution through the CATM-driven cross-chain architecture. It adopts a bridgeless architecture, which not only minimizes liquidity fragmentation and enhances security, but also significantly reduces the cost of cross-chain interoperation. At the same time, with the help of the OLBC model, PicWe provides a robust mechanism to maintain network stability and incentivize liquidity contributors.

As a new cross-chain interoperability system, PicWe not only breaks through the "interoperability trilemma", but also provides a scalable alternative to traditional cross-chain bridges. At the same time, through new expansion and combination methods, the paradigm of cross-chain interoperability is redefined, providing a new foundation for the world on the chain to move from decentralization to unity.

About PicWe

PicWe relies on a series of technical solutions, including Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP), Dynamic Liquidity Matrix (DLM) and Programmable Token Transfer. , launched the industry’s first cross-chain transaction model featuring bridge-less and trustless transaction model (CATM) on the Movement platform. This initiative aims to build the next generation of full-chain liquidity infrastructure.

By building this full-chain liquidity infrastructure, PicWe hopes to promote innovation in decentralized finance and bring unlimited possibilities to the B2B2C market.

To learn more please visit

Website

X (Twitter)