danielyoder77
commented
2 months ago This is definitely worth looking Into
Open osiris0007 opened 3 months ago
danielyoder77
commented
2 months ago This is definitely worth looking Into
Proposal: Enhancing LayerZero’s Omnichain Interoperability with Automated Token Conversion
LayerZero is an open-source, immutable messaging protocol that enables different blockchains to seamlessly interact with one another. However, one of the current limitations of LayerZero is that it only supports a set of tokens for each network. For example, users cannot bridge ETH or hold to zkSync, as they are limited to MAV, WAGMI and ITP, and This restricts the range of assets that users can access and transfer across different chains, and also adds extra steps and costs for users who want to swap their tokens to different ones, especially that many popular coins with high volume are not included in layerzero’s default options.
To address this issue, we propose to implement or collaborate with an aggregator that can perform the destination chain swaps for the users. An aggregator is a platform that aggregates the liquidity and prices of different decentralized exchanges (DEXs) and provides the best rates and routes for the users. By integrating an aggregator with LayerZero, optimized with verified and tested reliability, users can simply send their tokens to any chain they want, and the aggregator will automatically swap them to the desired tokens on the destination chain. This will extend the range of assets that users can access and transfer across different chains, and also reduce the hassle and cost for the users, and bringing popular tokens from various blockchain to layerzero which will ultimately seal layerzero as the user’s to go to destination.
We believe that this proposal will enhance LayerZero's omnichain interoperability and user experience, and also create more value and demand for LayerZero and its anticipated native token.for example ZRO holders might get incentives or free swaps on specific chains during events , or ZRO could be the middle token for all swaps. We welcome any feedback and suggestions from the LayerZero community and team.