Rubic Cross-Chain Routing Liquidity Provision
On August 31st, Rubic successfully launched the first-on-the-market Cross-Chain Routing solution. This solution allows users to complete cross-chain swaps on more than 7,500 assets between 3 main blockchains: Ethereum, Binance Smart Chain, and Polygon. It is easy to underestimate the simplicity of this feature for our users; they can now complete swaps between these networks with only a few clicks, and it will take roughly 2 minutes to complete those cross-chain swaps.
Before the launch of the Cross-Chain Routing feature, Rubic announced that users would be able to participate in “staking”:
“Users will be able to participate in cross-chain routing by providing their tokens to the RBC/BRBC/RBC(pos) pools for swaps. The ‘stakers’ will receive a part of the commission in proportion to their share of provided liquidity.”
Just one week after launch, Rubic is ready to share more information with our community, and the rest of the crypto world, about the further development of this feature.
Rubic Cross-Chain Routing “Staking”
During our research, the Rubic development team was trying to find the best solution for our users. Our team believes they have found the best solution, which will allow both Rubic and Rubic’s holders to benefit from this “Liquidity Provision” option.
This solution will not just be “Staking”, as the more correct name for it is “Cross-Chain Liquidity Provision”. This solution is similar to most other liquidity pools, which are being used in projects such as Uniswap, PancakeSwap, and other leading AMM’s.
Users will be able to provide liquidity to Rubic’s liquidity pools with several types of assets on all three currently supported networks: Ethereum, Binance Smart Chain and Polygon. In the first stage of this Liquidity Provision, users will be able to provide liquidity with RBC/BRBC/RBC(pos) in their corresponding networks. At a later date, Rubic plans to allow users to “stake” their liquidity with other assets.
What Are The Benefits For Liquidity Providers?
During and after the launch, lots of users had questions regarding the fees for the completion of cross-chain swaps. To clarify, these fees are 0.3% of the total volume of the swap and they are being taken in the form of RBC tokens from the target network. As an example, if a user executes a cross-chain swap from Ethereum to Binance Smart Chain, the 0.3% fee would be taken in BRBC.
With the implementation of this Cross-Chain Liquidity Provision, Rubic will share 0.25% of value from every completed swap using Rubic Cross-Chain Routing among all of the Liquidity Providers.
This means that Rubic will only take 0.05% of the fee amount for the development of the project and will share the other 0.25% proportionally among all of the participants. The amount of revenue generated for liquidity providers on each swap could be changed in the future with the company’s support of a governance vote on fee percentages and how they are awarded.
The providers will be able to receive a payout of RBC/BRBC/RBC(pos) for providing liquidity, depending on the network where they are providing the liquidity.
In the first version of our decentralized liquidity pools, the pools for these tokens will be limited, but will be expanded upon with the growth and increasing popularity of our Cross-Chain Routing swaps. The estimated size of the first Decentralized Liquidity Pool will be around 1 Million RBC tokens, across all 3 networks. However, we may make changes to this, with final details about the amount of tokens able to be pooled being shared later in the month of September.
Also, Rubic will provide a special reward for all of the participants in the Liquidity Provision feature. More details about this additional reward will be shared later this month.
Rubic Cross-Chain Routing Progress
With the launch of Phase 1 of Rubic Cross-Chain Routing, the Rubic development team continues to work on improving and expanding this groundbreaking feature. Over the next week, Rubic will start testing this new Liquidity Provision feature and will inform our community in our weekly updates regarding the status of our developments.
We have additional audits and other news coming as well regarding these developments. Stay tuned for more news on Rubic’s Cross-Chain Routing!
Thank you for your continued and much-appreciated support!
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