XY Finance
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Protocol

Infrastructure

To achieve the most convenient and fastest cross-chain swap process, XY Finance introduces X Swap and Y Pool. While X swap provides a convenient interface for users to transfer any-token to any-chain easily, Y pool maintains an efficient cross-chain liquidity pool as a pillar of X swap. With these two products, XY Finance is able to create an unbounded cross-chain environment for anyone who wants to transfer their assets to different chains and who wants to utilize their capital as liquidity for high yield return.

X Swap

X swap is a cross-chain swap aggregator. It helps users find the most efficient cross-chain path and takes care of the details of the swap transactions. With X swap, users who were agonized by the cumbersome cross-chain swap procedures now can swap any token to any chain instantly with just one click.
X swap is mainly composed of two parts:

Swapper

Swapper is a smart contract deployed on different blockchains. It handles the swap transactions for X swap user and also acts as a wallet of cross-chain liquidity. Once user fires a transaction to Swapper with quotation, swapper automatically find the best routing path to swap user's token to the cross-chain bridge token. After the other component of X swap, Consensus, confirms the cross-chain transaction, Swapper on the target chain receive another transaction from Consensus and then utilize the liquidity in its wallet to swap the desired token to user.

Consensus

Consensus is comprised of multiple nodes from different parties to guarantee the correctness of cross-chain swap process and the security of X swap. As mentioned above, Consensus detects user's request for cross-chain swap and calls Swapper to execute the swap transaction on target chain. After the execution completed, Consensus validate the swap transaction and claim the credit by calling the Swapper on source chain.
More details are given in following section.

Y Pool

Y pool is a cross-chain liquidity pool protocol. User can provide their liquidity to Y pool to earn rewards from swap fees and liquidity mining. What makes Y pool exceptional is that it manages the liquidities on different chains simultaneously. For instance, a stable coin based Y pool will manage the stable coin liquidity on Ethereum, Binance Smart Chain, and Polygon and provide the liquidity to X swap. But how does Y pool handle the cross-chain liquidity? Here comes the Settlement Contract.

Settlement Contract on Settlement Chain

A Y pool settlement contract is deployed on a decentralized settlement chain in order to record the cross-chain liquidity and the balance of each liquidity provider. The settlement contract updates the record whenever liquidity providers deposit/withdraw their asset or X swap utilize the cross-chain liquidity.

Liquidity Mining

After liquidity provider provides his/her asset, he/she will start to accumulate his/her liquidity mining rewards. The rewards consists of two parts, cross-chain fee and XY token reward. While cross-chain fee is gained from users who uses X swap service, XY token reward is distributed by XY Finance to incentivize XY protocol contributors.
More details are given in following section.
With X swap and Y pool, XY Finance establishes a thorough cross-chain swap mechanism for users to swap and for stakeholders to yield. Nevertheless, this is just the beginning. XY Finance will continue to evolve and introduce new features with the development team's creativity and XY DAO community's participation. XY Finance will constantly grow and thrive with our users.