IBC Swap — simplifying swaps and transfers across the interchain
Introducing IBC Swap — a solution by TFM to significantly simplify the process of cross-chain swaps in the interchain, making it easier and more efficient for users to move and use their tokens across different chains.
The interchain is a fast-growing ecosystem with over 50 IBC connected chains, made up of both Cosmos-SDK appchains and now, Polkadot chains too. While it is commendable that IBC connects these chains for secure cross-chain token transfers, the user journey for actually swapping and transferring tokens between chains is kinda “broken”.
IBC Swap benefits users by abstracting away the complexity of moving tokens around the interchain. Instead of initiating multiple transactions on multiple dApps, IBC Swap helps users swap tokens from anywhere, to anywhere, in one seamless interface — often with just one click.
For example, currently, if a user wants to use ATOM they hold on the Persistence chain to buy an NFT with STARS on Stargaze, there are four steps that must completed:
- Persistence: Transfer ATOM from Persistence to Cosmos Hub
- Osmosis: Deposit ATOM from Cosmos Hub into Osmosis
- Osmosis: Swap ATOM for STARS on Osmosis
- Osmosis: Withdraw STARS from Osmosis to Stargaze
For experienced users, the flow is understood, it just takes the user time to conduct the transactions. For newer users, this process is overwhelming.
This user journey is not the fit for the mass adoption that the interchain is gearing up for.
What is TFM’s IBC Swap?
IBC Swap combines cross-chain swaps and transfers into a single interface. Making use of Packet Forward Middleware, and Axelar Asset Transfer and IBC Hooks vastly reduces the complexity for end users!
With connections to all IBC-Go enabled appchains, users can literally swap any token on any chain — to any token on any chain!
Native DEX Aggregation on Terra, Juno, Neutron and Osmosis provide multiple venues for swap operations. TFM’s native routers perform the swaps for the best price — making use of volume splitting and multi hop.
The flow is much simpler than making separate transactions for each step in a cross chain swap. The four steps above can be combined into a single process on the IBC Swap Terminal.
- IBC Swap will transfer the $ATOM from Persistence -> Cosmos Hub -> Osmosis
- Perform the token swap from $ATOM to $STARS, with no additional fees
- Then transfer the $STARS from Osmosis -> Stargaze
- All, in just 1 click!
At TFM, we spent a lot of time working to simplify the interchain journey. Our team integrated Axelar’s Asset Transfer module, Packet Forward Middleware, and utilized IBC Hooks to reduce the number of transactions required to be signed in wallet.
Of course, we would like to further reduce the number of wallet-prompts the user receives, but despite this, the ability to perform cross-chain swaps and transfers from a single interface already greatly simplifies the process for the end user.
What might the future hold for IBC Swap?
Perhaps instead of using IBC Swap to move tokens and then shop on TFM’s interchain NFT Aggregator, users can go straight to the NFT Aggregator, find an NFT they want to purchase and then select a payment token from any network within the interchain.
The whole IBC Swap and Transfer mechanisms can be moved into the background, so that users simply don’t need to worry about what token they hold and what tokens they need for the payment.
Currently TFM have integrated the DEX aggregator into 5 appchains, with future integrations planned to provide more venues for aggregated swaps and optimal routing.
IBC Swap works in the background, abstracting away the complexity of cross-chain swaps, making it easier, and helping to onboard the next wave of users to the interchain.
So, how do you use IBC Swap?
Here is a step-by-step guide to using IBC Swap — on https://tfm.com
Visitors to TFM IBC Swap are presented with this swap box. Users must select From Network and Token as well as To Network and Token.
When they click on one of the drop-downs above, they are presented with the following model window. Continuing with the example above, we simply select From Persistence ATOM, To Stargaze STARS. Then press Save & Close.
Approve 1 click transaction in wallet, and wait for STARS to appear in Stargaze wallet. Then go shopping, using TFM’s interchain NFT Aggregator of course!
About TFM.com
TFM are abstracting away the complexity of IBC with their suite of products for both users and developers. They have also built a DEX and NFT aggregation platform to provide the best swap rates and ability to purchase NFTs from multiple appchains within one integrated Terminal.
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