> For the complete documentation index, see [llms.txt](https://docs-core.allbridge.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-core.allbridge.io/product/how-does-allbridge-core-work.md).

# How does Allbridge Core work?

Allbridge Core enables native stablecoin transfers between blockchains by building on the official cross-chain standards of the assets it supports. Instead of minting wrapped tokens or holding liquidity in bridge-owned pools, the protocol provides a single interface, fee model and relayer network on top of three transfer mechanisms:

* CCTP and CCTP V2: Circle’s Cross-Chain Transfer Protocol, a burn-and-mint flow for USDC.
* xReserve: Circle’s infrastructure for USDC-backed stablecoins. It works as a variant of CCTP on routes where the asset on one side is a USDC-backed token rather than USDC itself, for example USDCx on Stacks.
* OFT: LayerZero’s Omnichain Fungible Token standard, used for USDT and USDe.

The following sections break down each part of the flow.

## Transfer Flow

1. Route selection. The user picks the source chain, destination chain, token and amount. Allbridge Core determines which mechanism serves that route and shows the full fee breakdown, including the optional gas top-up.
2. Source transaction. The user signs one transaction on the source chain. The Allbridge Core contract collects the fees and passes the tokens to the underlying protocol, which burns or locks them on the source chain.
3. Attestation. The underlying protocol confirms the source transaction: Circle’s attestation service for CCTP and xReserve, LayerZero’s verification network for OFT.
4. Destination transaction. Allbridge relayers submit the receive transaction on the destination chain. The tokens are released to the recipient, together with the optional gas top-up.

## No Exchange Rate, No Price Impact

Because a transfer is a burn-and-mint (or lock-and-mint) operation rather than a swap, one unit sent is one unit received. The only deductions are the relayer fee, the service fee and, if selected, the gas top-up, all shown before the transfer is sent. See [Fees](/product/how-does-allbridge-core-work/fees.md) for details.

## Relayers and Fee Payment

Allbridge relayers monitor source chains and complete transfers on the destination chain, so the recipient does not need gas on the destination chain to receive funds. The relayer fee covers this destination transaction and can be paid in the source chain gas token, in the transferred stablecoin, or in [ABR0](/product/abr0-token.md).

## Non-Custodial by Design

Allbridge Core does not hold user liquidity. Tokens move between the user’s wallet and the CCTP, xReserve or OFT contracts within the transfer transactions, and only the recipient specified in the transfer can receive them on the destination chain.