Let’s fill in the gaps. We will have to omit some details in order to maintain security measures but the information provided will be sufficient to understand the mechanics and business principles behind the Bridge service.
Below is a simple step-by-step description of the SpaceSwap cross-chain Bridge process, using the example of swapping MILK2 tokens from the Ethereum network to Binance Smart Chain. This is the most popular transaction these days.
The user connects their wallet to the website and proceeds to the page: https://spaceswap.app/bridge
The user selects the required amount of MILK2 and clicks on the SWAP button to confirm the transaction and the fee in their MetaMask wallet.
This amount is sent from the user’s wallet using the Transfer method, minus the fee for executing the swap (taken in MILK2). The fee is always displayed on the Bridge service page. The tokens arrive at one of the temporary Bridge wallets on Ethereum (which are created using a special algorithm for security reasons).
At the same time, the Layer 2 solution sends a message to the automatic Bridge wallet on the Binance Smart Chain network to state that the funds have arrived.
Where does the Bridge automatic wallet money come from?
The funds either come from temporary wallets that receive the incoming flow of tokens from BSC to Ethereum, or the automatic wallet is replenished with extra stocks. The latter scenario occurs if there is no incoming flow, which happens now that many users are transferring MILK2 out of the Ethereum network.
Address of the automatic Bridge: 0x5464C289bD0BadCb17ab74868dE9C6fA43243780
On the Binance Smart Chain network, the automatic Bridge receives the command to transfer the MILK2 tokens (minus commission) to the same user address, but on BSC. In all cases, you will see the Transfer method because the automatic Bridge address only deals with sending.
If you have ever used our Bridge service before, you’ll know that you can easily track the tokens the entire way, but remember, you need to check both blockchains. Do not forget - no addresses or transactions can happen without leaving a trace in the blockchain, so you can always check what is going on with your funds at any moment.
Below, we provide answers to the most frequently asked questions about the service.
I see that your Bridge address is sending money in little bits to different wallets and then the MILK2 is sold!
The Bridge address does exactly what it should do. It receives an automatic command to transfer the required amount of funds to the wallet address of the user that initiated the exchange, from one blockchain to another. It is very easy to check the execution of the swaps. All you have to do is input the address of the recipient wallet in the other blockchain and you will see the amount received + the amount that the Bridge retains as a commission. What users do with their own tokens is their business.
Why are large amounts withdrawn from the Bridge address at once? Where do they go?
As required by the security system, we make sure that large volumes of coins are never stored on the automatic wallet. That is why coins are withdrawn and later returned as and when needed, if there is no incoming liquidity.
Do you freeze assets on the Bridge?
No, the Bridge assets are not locked or frozen. This allows the system more flexibility to work and be capable of adapting to changing loads, as well as to ensure the security of the funds — we do not store large amounts of liquidity in one place. The Bridge has been designed this way since its launch, almost a year ago. If you find the system to be unsuitable, you do not have to use the Bridge service.
Why are transactions sometimes processed within a second and other times I have to wait a long time?
The Bridge is automatic and the algorithm that underpins its operation is fully verified and debugged. If there is a sufficient amount of liquidity on the other side, the transaction will take place within minutes (adjusted for the workload of the blockchain itself). However, if there is not enough total liquidity available for the Bridge to access (which happens when there is an increased load, like now), a multi-level procedure for replenishing liquidity is launched and it has to pass through several stages of verification. We have chosen to prioritize the safety of users' assets, which means sacrificing the speed.
At the moment, the team is also developing additions to the current architecture and if they pass their numerous tests, we will propose their implementation.