Mechanics of Lachain swaps
Lachain bridge enables user with an ability of permissionless cross chain swaps. Lachain is an intermediary chain for cross chain transactions completion. The cross chain swap is cheap, fast and simple with Lachain.
User wants to send USDT on Chain A to native token of Chain B via Lachain.
1) CHAIN A:
-User sends USDT
-Lachain smart contract counts how much Chain B native token user should get according to USDT/Chain B native token rate
-Lachain endpoint computes the gas price on chain A and chain B, summarize it and user pays it once, for all the transactions
-USDT of user is locked.
-Wrapped USDT is minted for the user in Lachain
-It goes through LaDex pools WUSDT -> LA token -> Wrapped Native Token of Chain B
-Wrapped Native Token of Chain B is burnt
3) CHAIN B:
-Lachain endpoint releases Native Token of Chain B on Chain B
-Sends it to the user
-User gets Native Token of Chain B
Step 1️⃣: Transfer assets from needed chain to Lachain. Lachain will issue wrapped LP token, confirming your value sent.
Step 2️⃣: Transfer assets from Lachain to any chain and any tokens, No need to have any native tokens to pay for gas.