With LayerZero, TideX is able to connect to multiple chains, including Arbitrum, Optimism, BNB, Avalanche and more. This allows traders to have access to liquidity and assets that were previously siloed, leading to a more liquid and efficient market. By integrating LayerZero, TideX is able to bridge the gap between different chains, allowing for cross-chain trades and giving traders the ability to access liquidity from different chains in a single platform.
LayerZero relies on two parties to transfer messages between on-chain endpoints: the Oracle and the Relayer. When a UA sends a message from chain A to chain B, the message is routed through the endpoint on chain A. The endpoint then notifies the UA specified Oracle and Relayer of the message and it’s destination chain. The Oracle forwards the block header to the endpoint on chain B and the Relayer then submits the transaction proof. The proof is validated on the destination chain and the message is forwarded to the destination address.
This integration is particularly beneficial for traders who wish to trade assets that are not available on their home chain. For example, if a trader on the Ethereum chain wants to trade an asset that is only available on the Binance Smart Chain, they can now do so on TideX using LayerZero.
This allows for a much broader range of trading options for traders and also allows for new trading opportunities to arise. In addition this integrations allows for more efficient trading and better pricing.
By having access to liquidity from multiple chains, traders will have a more diverse range of options when it comes to placing their trades. This will lead to better pricing, as the market will have more liquidity and less volatility. Additionally, the integration of LayerZero allows TideX to attract liquidity providers from other chains, providing more liquidity to the platform.