1.2 KiB
Bridge
Network validators and bridge participants receive rewards in terms of KARMA, the LUX network governance token. LUX will support many different chains through its partnership with BridgeDAO, which funds the pools that operate its bridge, ensuring that proper liquidity is always available for cross-chain swapping. This acts as an insurance mechanism against excessive slippage, improving swap pricing across all chains.
Bridging is the process of transferring assets into a different blockchain protocol. In a typical Bridge, network validators and smart contracts act as gatekeepers between two blockchain protocols. On top of that, both blockchains have to lock, mint, and burn the equivalent amount of assets. In order to keep the bridge distributed and private, the bridge utilizes multi-party compute (MPC), and zero-knowledge proofs (ZKP). This kind of bridge is dubbed a “Teleport Bridge” due to its privacy-first capabilities. Tokens go into the Teleport bridge and can end up on any number of chains. Most significantly, only the initiator of the token transaction knows the actual target destination.