Cross-chain Swap

ARMSwap’s cross chain swaps works or same mechanism of liquidity as its cross-chain bridges does. User can swap their tokens around 180+ blockchain, with any of their tokens if their swap pool exists, if not, users can grab this opportunity to earn by creating a swap pool by their own.

Workflow

While ARMSwap cannot directly mint assets like ETH, it utilizes a sophisticated system of liquidity pools to facilitate their cross-chain transfer. These pools, established by ARMSwap, project teams (are we making pools by our own?), or individual users, essentially act as reservoirs of specific assets on various chains.

When a user initiates a cross-chain swap, say, n ETH from chain A to FTM chain B, the following steps occur:

• Depositing on Chain A The n ETH coins are deposited by user within the corresponding liquidity pool on chain A.

• Receiving on Chain B If the pool on chain B holds sufficient FTM, this amount is automatically transferred to the user's wallet on chain B.

• Minting LP Tokens In the event of insufficient FTM on chain B, ARMSwap mints LP tokens i.e. WFTM on chain B and sends them to the user. These LP tokens represent the user's claim to the equivalent amount of FTM on chain B and are essentially "pool shares”.

• Redeeming LP Tokens Users can redeem their LP tokens i.e. WFTM for an equivalent amount of FTM on chain B once sufficient liquidity becomes available. This process burns the WFTM tokens, effectively adjusting the user's claim within the pool share.