There are scores of blockchains each having its own merits and designed to solve a set of use cases. If one chain is good for liquid staking on PoS tokens other is good for perpetual trading. Multiple chains have evolved to facilitate high transaction throughput, reduce gas fee, security, and privacy. This has created opportunity to build platforms or tokens that are complimentary to the core architecture of chain. Like perpetuals on arbitrum, lending on Ethereum, gaming tokens on binance smart chain and latest being meme craze on solana.
However, from an investor standpoint one has to traverse through multiple paths to buy a token not on the current chain. Let’s take an example of user who trades on binance smart chain and want to buy a token which exists only on solana. User must
- Identify right wallet that supports solana
- Download the extension or wallet (manage seed, primary key if needed)
- Buy native gas currency of solana chain (SOL)
- Identify right bridge/route and move SOL from binance smart chain to solana
- Buy the token
- Redemption has to follow the same path to get funds back to initiating account and chain
Multiple chains – multiple touchpoints
If user must buy 10 tokens across 10 chains, one has to keep track of all the keys, accounts and pay bridging costs. For instance, coins on arbitrum, solana and comos will need atleast 3 wallets/acounts on metamask, solflare/phantom and keplr. It is a tedious process and prone to errors as there are multiple touch points where a transaction can go wrong.
As more token with potential emerge across different chains, it worsens user experience as the number of chains, accounts to track manually will keep increasing.
Simplifying the process
Imagine an offering where user can deposit/withdraw stablecoins on one chain and everything else is performed by platform. catBots offers the service of depositing on one chain (arbitrum as of now) and buying tokens across chains on themes like AI, DePin and LSD. It is a totally automated process built into smart contracts. Hub and spoke framework is used to minimize the number of hops and two way handshake is built between the chains using briding solutions.
When a user deposits stablecoin like USDC into a bot, funds are split into units based on the bot logic. Depending on the factors like destination chain, token, gas fee, slippage (if applicable), time to transfer and security of the bridge, protocol bridges funds. Secured bridging solutions like Allbridge, Debridge, wormhole, orbiter, stargate are commonly used. Stable coin and corresponding native token for gas (if needed) are bridged automatically by the bot using smart contracts.
Once the funds are bridged, platform selects the best dex to swap the tokens. It takes into account gas fee, liquidity of the pair and initiates the swap. In most of the cases, platform prefers dex aggregators where swap success rate is high. By design it will reattempt to confirm the transactions if it fails due to mismatch in any of the parameters mentioned above.
Depending on the bot logic and bot owner specifications tokens are swaped against stablecoin when necessary and bridged back to hub chain. All these interactions are done using smart contracts and tracible on-chain. User is agnostic to all these steps and can just deposit and redeem from the same chain. This exempts user from hopping through multiple loops to invest in a token.
Building chain agnostic trading bots
User experience is at the heart of catBots by design. Both bot owners and bot users will be able to accomplish their core objectives without worrying about muti-chain requirements. catBots built a complete on-chain solution to cater to the need of trading bots to transact on mulltiple chains without compromising on security and funcationality of the bot.
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