LUKSO, an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain, is getting close to launching its two-way bridge with Ethereum. The bridge will enable effortless transfer of digital assets and identities across both networks. The goal of the development is to provide added value to the LUKSO ecosystem, for example, by allowing for wrapped versions of stablecoins and more liquidity. LUKSO’s EVM compatibility means a low barrier for developers to port their pre-existing Ethereum applications. Further, its smart contract standards (LSPs) foster a more dynamic building ecosystem. The LUKSO team expects this bridge to be a catalyst for even more growth and innovation in its ecosystem.
The LUKSO bridge is a key evolution in our increasingly interoperable blockchain world. The bridge integrates LUKSO with Ethereum, allowing for simple and seamless exchange between the networks. Users can now move tokens and assets back and forth across the two networks with ease. This interoperability across chains not only makes transactions faster and less expensive, but increases the potential for new decentralized applications (dApps) and tokenized assets.
Bridging the Gap Between LUKSO and Ethereum
LUKSO gives developers the unique opportunity to quickly migrate their ETH applications to its network. With this strategic move, this gives them the ability to utilize a more powerful platform. With EVM compatibility, it’s simple to deploy Ethereum-based smart contracts on LUKSO. This feature provides easy interoperability, opening up a world of seamless transition onto the LUKSO blockchain.
LUKSO’s smart contract standards (LSPs) offer an advanced developmental infrastructure for building developers a more potent structure. These improved standards provide more advanced and desirable features and flexibility, empowering developers to build cooler, innovative dApps.
Key Features and Benefits of the Bridge
The LUKSO bridge further establishes this connection in both directions. This allows developers and users to move assets and data seamlessly between LUKSO and Ethereum in both directions. Smart contracts and cross-chain bridges Jean Cavallera, Lead Smart Contract Engineer at LUKSO, explains cross-chain bridges as connecting “two islands”.
"It's interesting because often in crypto we talk about a bridge between chains. The reality is that it's actually routed at the technical level. To represent it visually, you can think of it as two islands. You have one island which is Ethereum, one island is LUKSO, and you could reach the other island using different ways of transport." - Jean Cavallera
Launch of the bridge will bring numerous strategic advantages for the LUKSO ecosystem. One of the biggest benefits is the launch of wrapped stablecoins on LUKSO.
"There are basically different aspects to the bridge that you can think of; it's going to bring value to the ecosystem. First of all, there will be the wrapped version of stablecoins on LUKSO, which is relevant because you will have ecosystem tokens that have actual pegged value to certain fiat currencies." - Jean Cavallera
Just like LYX, wrapped stablecoins will enable users to exchange value in a stable and reliable manner on LUKSO’s network. They are pegged to a specific fiat currency, so their value never fluctuates.
Enhancing Liquidity and Ecosystem Growth
It’s still in beta but the LUKSO team is quite confident that the bridge represents the beginning of something more. They are passionate about increasing liquidity and accelerating growth across the ecosystem. LUKSO’s Chief Growth Officer, Jonathan Wan, expects the bridge to bring a lot more liquidity to the network.
"The bridge is really just the start because it's going to usher in more liquidity. We've already got protocols on the DeFi side of things, building out the infrastructure on LUKSO so that we can enable these flywheels within the ecosystem. And then also we're pairing that with the approach of getting the native token out to other ecosystems." - Jonathan Wan
The bridge will allow LYX, LUKSO’s native currency, to be transferred onto Ethereum. This will give users who have no means of directly accessing LYX the chance to exchange it on DeFi platforms such as Uniswap.
"a two-way bridge. It's not only Ethereum to LUKSO, it's also LUKSO to Ethereum. It will be interesting because you can bridge LYX, the native currency from LUKSO, onto Ethereum. For users who can't directly access LYX, they'll be able to swap it on Uniswap." - Jean Cavallera
By delivering the required core economic infrastructure, LUKSO’s mission is to establish a global ecosystem that connects, inspires and empowers its participants. This goes beyond the bridge, though this is certainly a big part of it, especially the development of DeFi (decentralized finance) protocols, bridges and more.
"Any network needs, you know, that core economic kind of infrastructure for the flywheels really to run. It's going to enable a lot of things right even for something like DeFi within LUKSO. There's a lot of things that are possible now on LUKSO that just weren't on any EVM chain before." - Jonathan Wan
The new implementation of the bridge will enable more activities to be done inside the LUKSO network. This extends from DeFi applications to new and exciting use cases that previously could not exist on alternative EVM chains.
The bridge’s architecture includes specific elements to improve interoperability between the two networks. For developers, it’s quick and easy to port existing tokens from Ethereum to LUKSO. This process deepens the usefulness of those tokens in the dynamic LUKSO ecosystem.
"If you have a token on Ethereum and you wanted to actually engage your audience in a more kind of automated on-chain way, bridge that over to LUKSO, you know, have that Universal Profile, and because of the standards, really cool things can happen now." - Jonathan Wan
