3112Cryption Network is a blockchain-based platform that seeks to address all the drawbacks that users experience in decentralized finance and crypto ecosystem in general. The platform is mainly seeking to proffer solutions to the volatile nature of the crypto market. Some of its products include the likes of PolyDEX, Elastic Farming, Deflation of CNT, Cryption Wallet, Non-custodial portfolio management, etc.
To add to its list of launches and partnerships, Cryption Network is launching Cross-Chain Farming for PolyDEX. They were launched on September 9, 2021. Cross-Chain Farming is completely decentralized, and it will be the first one in the history of cryptocurrency and decentralized finance.
Overview of Cross-Chain Farming
Cross-Chain farming is a “one-of-a-kind” DeFi farming technique that allows users to engage in crypto farming across two different blockchains. It is completely decentralized and will be in use for the time courtesy of Cryption Network. With Cross-Chain Farming, you can deposit ETH on the Ethereum mainnet. The ETH you have deposited will, in turn, be used to create liquidity pool (LP) tokens on PolyDEX, which is deployed on the Polygon Network. With a single click, you can be registered into your farm of choice.
However, Cross-Chain Farming can only work with the help of two types of Polygon-Ethereum bridges. These bridges are the POS Token Bridge and the State Sync mechanism & FxPortals as a Data Bridge. The POS Bridge is a series of smart contracts that help transfer assets from the Ethereum chain (root chain) to the Polygon Network (child chain). Before anyone can use the POS Bridge, the token contracts of both the root and child chains must be mapped. On the other hand, the State Sync Mechanism & FxPortals is a special kind of mechanism that reads the data coming from the Ethereum “root” chain on the Polygon “child” chain. The root and child contracts of the bridge also require mapping before it can function optimally.
How Does Cross-Chain Farming Work?
Cross-Chain Farming works in a step-wise process, and each step functions like a chain reaction that leads to the next step until the entire process is completed. First, a user will have to deposit ETH on the Ethereum mainnet. This will be done in a smart contract that specifies all the details of the farm that the user wants to enroll in. In the second step, the smart contract goes over the data that has been provided by the user and ensures the Cross-Chain Farming data is ready. The action triggers the POS Bridge to move ETH to Polygon, which will be received on the Cross-Chain Farming Intermediator contract. It, in turn, triggers the FxPortals to port the metadata from the root chain to the child chain, and it will also be received on the Cross-Chain Farming Intermediator contract. Once the Polygon validators process the State Sync event, ETH and metadata will be moved from Ethereum to Polygon.
Immediately the metadata gets on the Polygon child chain; the intermediator contract will decode it and then trigger another smart contract. The function of this smart contract is to convert ETH to the tokens needed to add liquidity in the corresponding pair in order to generate liquidity pool (LP) tokens. Once the LP tokens have been received, the PolyDEX core farming contract will be triggered to deposit the generated LP tokens for the user.
The Concept of PolyDEX
PolyDEX is one of the many products launched by the Cryption Network. According to the litepaper, PolyDEX is an automated money maker DeFi exchange designed to offer a special kind of yield farming known as elastic yield farming. The elastic farms are created to incentivize liquidity on the PolyDEX exchange. With a 2 second blocktime, PolyDEX is very fast, and the exchange is also feeless.