Over the past few months, we’ve seen a number of Cross-Chain Messaging technology stacks go live, both from newcomers and teams who have been around for quite some time. The most recent example of course would be Chainlink, with CCIP (Cross-Chain Interoperability Protocol) and the most prevalent being Axelar, having being used to facilitate cross-chain transfers within the Cosmos Ecosystem.

However, a team stands out above when it comes to both traditional token-bridge transfers and of course, bridgeless cross-chain messaging - and that is the Wormhole Foundation, who have been a vital part of DeFi infrastructure since 2021, and a team we’ve been working very closely with to build and launch Pike.

Wormhole facilitates cross-chain use cases by enabling dApps to transfer assets and source chain data between networks, allowing them to provide services on different destination chains - without having to use bridges.

The Cross-Chain Messaging network consists of 19 top-tier validators and utilizes a proof-of-authority model. Each supported network has a core contract responsible for emitting messages. These messages are then verified and signed by the validators, or “Guardians”. Once a message is verified and signed by at least 13 of the Guardians, it is relayed to the destination chain where the message is processed, and the cross-chain transaction is finalized.

Unlike bridges, where sent assets are stored in a centralized depository (on the source chain), and an “identical” wrapped version is minted on the destination chain - Wormhole’s cross-chain messaging can instead, utilize a “mint and burn” mechanism, meaning the original asset on the source chain is fundamentally destroyed and simultaneously, it’s destination chain counterpart is then minted - foregoing any need for centralized storage of assets, nor wrapping.

Think of cross-chain messaging like the postal service. The relayer (core contract) acts as the courier, transmitting messages from one chain to another, the guardians serve as the tracking database - processing information and confirming the shipping details of the messages, and the oracle is the recipient - receiving and interpreting the messages at its destination.

With Wormhole’s infrastructure, Pike has a robust and reliable way to be able to to validate balances between each of it’s spoke chains, without needing to develop a solution internally. This enables Pike to verify that for example, a user’s assets within the Base spoke are indeed legitimate and within Pike’s smart contracts, and hence can be used as collateral and borrowing on Arbitrum can take place with full confidence. This of course extends to cross-chain liquidiations as well.

Let’s explore how this would actually work with the following example:`

Before cross-chain messaging, a borrowers user journey might look like this:

1. Let’s say you hold a bunch of $UNI on Ethereum, and noticed a tempting yield opportunity on Optimism

2. In order to transfer the value of your assets from Ethereum to Optimism, your only choice is to swap your $UNI for $ETH (forgoing your $UNI exposure) and then use a bridge to move $ETH across-chain

3. You would then borrow $OP on Aave against your deposited $ETH so that you could finally be exposed to the $OP yield opportunity

This presents users with several sacrifices: not being able to hold their asset of choice ($UNI), exposing themselves to risky bridges, and earning less yield from their $ETH deposit on Optimism than would have been earned by keeping it on Ethereum.

Luckily, Cross-Chain Messaging facilitates a safer, simpler process, without compromises:

1. Keep your $UNI on Ethereum

2. Supply as collateral on Pike - this is verified by Wormhole and communicated with Pike’s Hub on Base

3. Borrow native $OP on Optimism - since Pike’s spoke deployment on Optimism is innately aware of the $UNI being kept on Ethereum, it can reliably provide pricing, rates and also execute a loan of $OP

4. Utilize $OP within the Optimism ecosystem, whilst your $UNI is safely deposited on Ethereum, earning yield and maintaining your exposure - never once did you have to swap your assets, bridge them across chains

We’re building Pike because we think true interoperability benefits everyone in DeFi and we’d love for you to play a role in our development. We will be launching a testnet campaign to enlist the DeFi community’s help in stress-testing Pike and giving users the ability to experience native cross-chain lending firsthand as hosted on Base.

Stay tuned for an announcement outlining the campaign details in the coming weeks.

Sign up for our waitlist for access to news, announcements, and updates.

If you have ideas, questions, or just want to chat crypto, join our Discord group to say hello, or follow us on Twitter.

Pike | Universal Liquidity Protocol

A next generation money market 一 Earn, borrow and build applications on any chains.

https://www.pike.finance

Over the past few months, we’ve seen a number of Cross-Chain Messaging technology stacks go live, both from newcomers and teams who have been around for quite some time. The most recent example of course would be Chainlink, with CCIP (Cross-Chain Interoperability Protocol) and the most prevalent being Axelar, having being used to facilitate cross-chain transfers within the Cosmos Ecosystem.

However, a team stands out above when it comes to both traditional token-bridge transfers and of course, bridgeless cross-chain messaging - and that is the Wormhole Foundation, who have been a vital part of DeFi infrastructure since 2021, and a team we’ve been working very closely with to build and launch Pike.

Wormhole facilitates cross-chain use cases by enabling dApps to transfer assets and source chain data between networks, allowing them to provide services on different destination chains - without having to use bridges.

The Cross-Chain Messaging network consists of 19 top-tier validators and utilizes a proof-of-authority model. Each supported network has a core contract responsible for emitting messages. These messages are then verified and signed by the validators, or “Guardians”. Once a message is verified and signed by at least 13 of the Guardians, it is relayed to the destination chain where the message is processed, and the cross-chain transaction is finalized.

Unlike bridges, where sent assets are stored in a centralized depository (on the source chain), and an “identical” wrapped version is minted on the destination chain - Wormhole’s cross-chain messaging can instead, utilize a “mint and burn” mechanism, meaning the original asset on the source chain is fundamentally destroyed and simultaneously, it’s destination chain counterpart is then minted - foregoing any need for centralized storage of assets, nor wrapping.

Think of cross-chain messaging like the postal service. The relayer (core contract) acts as the courier, transmitting messages from one chain to another, the guardians serve as the tracking database - processing information and confirming the shipping details of the messages, and the oracle is the recipient - receiving and interpreting the messages at its destination.

With Wormhole’s infrastructure, Pike has a robust and reliable way to be able to to validate balances between each of it’s spoke chains, without needing to develop a solution internally. This enables Pike to verify that for example, a user’s assets within the Base spoke are indeed legitimate and within Pike’s smart contracts, and hence can be used as collateral and borrowing on Arbitrum can take place with full confidence. This of course extends to cross-chain liquidiations as well.

Let’s explore how this would actually work with the following example:`

Before cross-chain messaging, a borrowers user journey might look like this:

1. Let’s say you hold a bunch of $UNI on Ethereum, and noticed a tempting yield opportunity on Optimism

2. In order to transfer the value of your assets from Ethereum to Optimism, your only choice is to swap your $UNI for $ETH (forgoing your $UNI exposure) and then use a bridge to move $ETH across-chain

3. You would then borrow $OP on Aave against your deposited $ETH so that you could finally be exposed to the $OP yield opportunity

This presents users with several sacrifices: not being able to hold their asset of choice ($UNI), exposing themselves to risky bridges, and earning less yield from their $ETH deposit on Optimism than would have been earned by keeping it on Ethereum.

Luckily, Cross-Chain Messaging facilitates a safer, simpler process, without compromises:

1. Keep your $UNI on Ethereum

2. Supply as collateral on Pike - this is verified by Wormhole and communicated with Pike’s Hub on Base

3. Borrow native $OP on Optimism - since Pike’s spoke deployment on Optimism is innately aware of the $UNI being kept on Ethereum, it can reliably provide pricing, rates and also execute a loan of $OP

4. Utilize $OP within the Optimism ecosystem, whilst your $UNI is safely deposited on Ethereum, earning yield and maintaining your exposure - never once did you have to swap your assets, bridge them across chains

We’re building Pike because we think true interoperability benefits everyone in DeFi and we’d love for you to play a role in our development. We will be launching a testnet campaign to enlist the DeFi community’s help in stress-testing Pike and giving users the ability to experience native cross-chain lending firsthand as hosted on Base.

Stay tuned for an announcement outlining the campaign details in the coming weeks.

Sign up for our waitlist for access to news, announcements, and updates.

If you have ideas, questions, or just want to chat crypto, join our Discord group to say hello, or follow us on Twitter.

Pike | Universal Liquidity Protocol

A next generation money market 一 Earn, borrow and build applications on any chains.

https://www.pike.finance