What is Allbridge Core?
Allbridge Core is a cross-chain swap built specifically for dollar-pegged tokens (stablecoins). Operates without wrapping tokens and works by keeping liquidity pools for the supported tokens on each blockchain. Incoming tokens go into the pool, and the value of those tokens is sent via the messaging protocol to another chain, where it is converted back to the tokens to be paid to the user.
In detail, when the user sends tokens via the Allbridge Core, the following happens:
- Bridge exchanges incoming tokens into their dollar value in the token pool for this particular token
- This value is sent via the underlining messaging protocol to the destination chain
- The bridge contract on the destination chain swaps dollar value to the tokens from the liquidity pool and sends them to the recipient
This process is illustrated for a sample swap of USDT on Ethereum to BUSD on BNB Chain in the diagram below:
The user (or the protocol integrating Allbridge Core) only has to trigger a single transaction on the source chain (line #1 in the diagram above).