Router Protocol integrates Circle’s CCTP under a partnership
Router Protocol and Circle have entered into a partnership. The same has been announced by Router Protocol, informing the community that it has successfully integrated CCTP into its decentralized application, Voyager. The dApp hails as the flagship cross-chain solution in the ecosystem of Router Protocol.
The ultimate objective of partnering with Circle is to make $USDC interoperable. CCTP, short for Cross-Chain Transfer Protocol, has committed to offering a superior bridging experience to Router Protocol. The elimination of the TVL honeypot problem will complement the experience.
Another benefit that Router Protocol has highlighted in its announcement is that it can now maintain large swaps without keeping capital locked inside, making the platform more capital efficient.
Circle’s CCTP has been chosen for integration by Router Protocol because it eliminates the traditional lock & mint system. The Cross-Chain Transfer Protocol instead burns the native token, $USDC, at the source and then mints it at the destination point. This contrasts with the traditional system because it would lock the native token at the source chain and mint a bridged version of the same at the destination chain.
It often resulted in fragmented liquidity and a bad user experience. The token was last seen exchanging hands at $1 while drafting this article.
Router Protocol drives Router Chain on devnet. It has been architected by utilizing the capabilities of Tendermint Consensus by Cosmos. It is a Layer-1 blockchain that now enables the Protocol to solve the issue of extant problems in blockchain interoperability.
The partnership of Circle and Router Protocol follows the development of the identical Layer-1 blockchain.
Router Chain aims to solve the problem of scalability and security through decentralization to provide a modular and composable framework. This framework is expected to offer support to developers who are building decentralized applications in Web3.
The architecture of the Router Chain separates the outbound requests from one another. Meaning applications can run the customer relayer to process their respective outbound requests. This mechanism is credited to the architecture of the Router Chain, for it allows parallel execution of outbound bids.
The benefits offered by Router Chain do not end at this point. There are a total of three tiers of security that the Chain provides: Blockchain Level, Bridge Level, and Application Level.
The security mechanism functions at the Bridge Level by showcasing the Elliptic Curve Digital Signature Algo, or ECDSA. Orchestrators use these to validate inbound and outbound requests. Similarly, security at the Blockchain Level works by deriving the underlying Byzantine Fault Tolerant Tendermint Consensus.
The Application Level sees validators signing the contract on Router. This happens before the same is forwarded to the outbound module. Router Chain makes it easier for cross-chain dApps to, by default, interact with other blockchain ecosystems. They do not have to bridge the network manually. This brings out benefits like liquidity, growth, and community adoption, among many others.
Router Protocol integrating CCTP by partnering with Circle is yet another move that had to happen to back its growth in delivering a seamless experience to users.