Content
1. Background for Bridge
2. What is blockchain operability?
3. What's the benefit to ZIL holders?
4. Why PolyNetwork & Switcheo?
5. What will the bridge bring?
6. How to use ZilBridge
7. Confirm Your Tranfser
8. In Event of Failed Transfers
9. Failed Transfer Stages 1 & 2
10. Failed Transfer Stage 3
11. Start Earning Yield
12. ZIL-ETH Bridge Incentive
13. How Much Cost to Bridge Assets Over?
14. Estimated Fees Needed
Also, check out the full ZilSwap guide by ZilSwap at https://docs.zilswap.io/how-to/zilbridge
Hey guys, welcome back to Zilliqa Zebra. In this video, I am going to share more about the Zilliqa-Ethereum bridge, including the background behind this critical project, its benefit to ZIL holders, as well as how to use the bridge. I will also be sharing on the 3.75 million US dollars of incentive provided by Zilliqa as part of its launch. If you want to know more about the Zilliqa-Ethereum bridge, this video is for you.
As always, don't forget to like and subscribe to Zilliqa Zebra for all things related to Zilliqa and its ecosystem.
Blockchain protocols are increasing by the day, bringing with them a promise for greater inclusion, cost-efficient financial transactions, and a simpler and more accountable version of peer-to-peer commerce. But these protocols don’t always speak the same language in the sense that their consensus mechanisms or their block structures could be completely different. These differences turn blockchains into isolated islands of dapps, tokens, and ecosystems creating barriers and unneeded complexities for users. In order to promote widespread adoption, interoperability between protocols has emerged as a critical and hot topic in the blockchain world. The ZIL-ETH bridge is an collaboration by Zilliqa, Switcheo and PolyNetwork to enable interoperability.
Blockchain interoperability enables different blockchains to seamlessly communicate with one another and facilitate transactions across different blockchains. Imagine builders on Ethereum and Zilliqa’s blockchains (and numerous others) being able to transfer data and transactions across other chains quickly and efficiently. Currently, a vast majority of blockchains operate in silos. This means that many blockchains can only read, transact, and access data within a singular blockchain. This limits blockchain user experience and hinders user adoption.
With interoperability, users and developers can seamlessly transact with multiple blockchains and benefit from those cross-chain ecosystems, application offerings in areas like decentralised finance (DeFi), gaming, supply chain logistics, and more . Ultimately, interoperability creates a more beneficial and friction-free experience for users and developers. It is an important driver of future crypto adoption and use.
How does this benefit Zilliqa token holders and developers? Interoperability provides a smoother user and developer experience and will likely attract more users and developers, in turn leading to more growth in the long run. Developers can benefit from building on Zilliqa, known for its affordable gas fees or ability to scale. At the same time, their products developed on one-chain can be used by other crypto communities on another chain — making Zilliqa almost ubiquitous whilst promoting usability. These builders will be able to leverage Zilliqa scalability, its Scilla-powered security, its speed, its competitive transaction fees and lots more.
So why has Zilliqa chosen PolyNetwork and Switcheo for its partners? PolyNetwork is a cross-chain interoperability protocol that helps bridge multiple chains and build the next-generation internet infrastructure. PolyNetwork has worked on interoperability with several major protocols, and thus has the experience and expertise to help Zilliqa standardize cross-chain interoperability, leading to a better user and developer experience.
Switcheo is a top-notch blockchain team and has been a key partner of Zilliqa. Switcheo is the team behind ZilSqap, the first DEX on Zilliqa, and one which is used widely by all in the Zilliqa community. Hence, Switcheo is the natural partner to help implement this interoperability bridge protocol.
What will the Zilliqa-Ethereum Bridge bring to all uses? Firstly, it will ensure a seamless movement of tokens across Ethereum and Zilliqa. One can build dapps on Zilliqa that tap into dApps on other chains. These builders will be able to leverage Zilliqa scalability, Scilla-powered security, the speed, Zilliqa’s competitive transaction fees and lots more. Zilliqa’s existing ecosystem partners can trade on other chains. e.g: ZWAP token could be traded on Switcheo DEMEX in the near future. dApps such as ZilSwap will bring more users, liquidity and assets to trade.
Let’s now take a look at how to use the bridge. First of all, access ZilBridge via https://zilswap.io/bridge. At this interface, you will need to ensure that you have both Zilliqa and Ethereum wallets ready to start the bridging process.
For Ethereum wallets, ZilBridge currently supports Metamask, WalletConnect, Portis, Torus, Fortmatic, Authereum and BoltX. For Zilliqa, both ZilPay and Zeeves are supported.
Once connected, you should be able to see a screen like this. Both your wallet addresses should be reflected on the Ethererum and Zilliqa side of the bridge. Do note that the transfer is from the left to the right. In this screenshot, you can see that the transfer is from Ethereum to Zilliqa. However, you can also swap it such that the transfer is from Zilliqa to Ethereum.
Select the desired token and then choose the amount for the transfer. In this example, I’ve chosen to move $38 worth of USDT from my Metamask wallet over to Zilliqa into ZilPay. Click “Head to confirmation” to proceed to the next step.
You will have a chance to review the total fees which include the transaction fees in ZIL. Hence, do remember to set aside some ZILs for this as well. You can purchase Zilliqa on Transak for easy fiat on-ramp or via other supported exchanges. During the start of a transfer, a private-transfer-recovery-key.txt file — containing a 12-word transfer key phrase — will automatically be downloaded to your device. You may use the transfer key to recover your transfer should it be disrupted or paused midway.
ZilBridge has factored in a provision for failed transfers. In the event that your transfer fails, there is no need to worry. You can head over to the Transfer History tab to recover and resume your transfer. Do take note of the stage where your transfer has failed, which can be broken into three stages.
At Stages 1 or 2 of the failed transfer, you can easily resume your transfer using the 12-word keyphrase in the text file which you downloaded earlier. Just enter the key phrase under the Resume Transfer feature on the Transfer History to kickstart the recovery process.Once you have pasted your transfer key, click Verify Transfer Key. Wait for it to be verified before proceeding to link your Destination wallet and resuming your transfer.
If there is a disruption at Stage 3 of the failed transfer, you will be able to recover and resume your transfer directly via the Transfer History tab. There you can also keep track of all your past transfers made between networks. Begin by revealing and copying your transfer key (which is the 12-word phrase). Next click Resume Transfer. A pop up will appear where you will be prompted to paste the transfer key you have previously copied. Once you have pasted your transfer key, click Verify Transfer Key. Once your transfer key has been verified, proceed to link your Destination wallet, and resume your transfer.
After bridging over to the Zilliqa mainnet network, you can start to earn yield on your assets when the liquidity mining incentives kick in on 6 October! Remember, you will get bonus $ZIL incentives (on top of Liquidity Mining Incentives) for providing liquidity on ZilSwap.
Zilliqa has a target to lock a total value of 60 million USD in assets and with this goal they have set aside 3.75 million USD worth of ZIL as an incentive for those who move any of the three assets, namely, WBTC, ETH, and USDT over to ZilSwap. The rationale behind the choice of these assets might be quite apparent: these assets are in the hands of most crypto users and have the most liquidity and trading volume. Moreover, bringing USDT over will also bring the first USD-backed stablecoin on ZilSwap.
These ZIL rewards will be distributed for a total of 6 weeks and in order to earn these rewards a user must move WBTC or ETH or USDT from Ethereum to Zilliqa and then add them to the respective pool on ZILSwap. Distribution of ZIL rewards to the liquidity providers will follow a similar model to ZWAP distribution (which is on a weekly disbursement) based on their liquidity and other factors such as the duration. If the target TVL of USD 60 million is hit, then the APR that the LPs will receive will be 50% (annualised).
How much will it cost to bridge your assets over? There are two fees you will need to pay when bridging a given asset from a source chain to a destination chain. Firstly, we have the Source chain fees. You will need to initiate a transaction on the source chain and for this you will be paying the network fees denominated in the native currency of the source chain. Next, we have the Destination chain fees. Unlike on the source chain where you initiate the transaction, on the destination chain, a node called a relayer sends the bridged asset to your wallet. You need to cover the fees that the relayer has to pay on the destination chain for this transaction. This fee is subtracted from the asset being bridged over.
You can refer to the following table for an estimated breakdown. Actual costs will depend on (1) congestion on either or both source and destination chains, as well as the (2) price of the native currency where gas is being charged.
I hope you have found this video useful. If you have any feedback and inputs, do drop them in the comments below. That's all I have for this episode of Zilliqa Zebra. Don’t forget to subscribe to my channel for your regular dose of Zilliqa and cryptocurrency news. And check out my other videos which might be of interest to you. Goodbye!
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