For those of us operators who can’t spend so much fees to move your STORJ tokens,
Gravity bridge is bringing liquidity for ETH and ERC20 holder to the cosmos. The permissionless bridge secured by more than 100 validators is able to transfer back and forth any ERC20 token using web UI or CLI at a low cost obtained through batching.
First STORJ transaction through the bridge occured in Dec 2021, and representations of ERC20 tokens will soon be traded in osmosis liquidity pools.
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I’m not exactly a crypto person, I’ve noted out the words I do not understand, or maybe my understanding of a word just doesn’t make sense in the context of this post. Could you please define them?
bridge, cosmos, validators, batching, token representation, osmosis, liquidity pool, graviton, staking
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Hello,
I understand your answer as so you probably find no interest for this post as it is. However give me a chance to provide you some insight of Cosmos ecosystem. Here are a few clue to understand. Usually tokens cannot travel space to be moved from one chain to another. Most of the DeFi (Decentralized Finance) is on Ethereum block chain via smart contract but newcomers are coming in this fast pace growing space ; visit https://defillama.com for more details.
Now more than ever cosmos network (the internet of blockchains) is a community developping and running fit-to-purpose blockchain that are all sharing the same SDK. In codmos Validators are the programs run by the community members to produce blocks and validate them using a consensus based on Tendermint Proof of Stake protocol (PoS). On PoS blockchains a user can farm (stake) his tokens and earn yield through the staking process, the asset is no more liquid as it is locked during a period of time of 3 weeks.
Cosmos chains can be interconnected using IBC (Inter BlockChain Communication protocol) to each others using channels. There is a nice map of cosmos blockchains showing all theses channels https://mapofzones.com .
IBC enables user to transfer cosmos tokens from one chain to another, for example to osmosis DEX (cosmos first Decenralized Exchange) to swap tokens by trading them in a Liquidity Pool. For instance UST / ATOM pool enables a user to change ATOM (the main native coin of COSMOS blockchain) against UST (USD stablecoin TERRA which is cosmos compatible).
The role of gravity bridge is to enable users to send any kind of asset from Ethereum blockchain, which is not cosmos compatible to cosmos ecosystem in a simple and secure way, as for instance STORJ. The real STORJ token is locked in a contract on ETH side, and a representation of this asset is minted on COSMOS side by the bridge.
This new representation of STORJ becomes cosmos compatible and can then be moved to any chain as a cosmos DEX or cosmos SWAP chain to be “changed” against another crypto, as for example in osmosis DEX.
The minted STORJ can change hands and then can be sent back if desired to Ethereum via the same bridge. Then the representation of the STORJ token is destoyed or burnt and the real STORJ is released from the contract on Ethereum side.
Here is the link to gravity contract that makes all this logic to secure transfers Address 0x33d2b8460128dfa03d187a919211ce5155a008dd | Etherscan
As you can see there are some real STORJ locked in the contract, they are the exact counterpart of representation of STORJ minted.
So that is why and how the bridge works, hopes it is a usefull reading.
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