Layer Cake is an advance in the security, speed and scalability of bridging between different smart contract networks. It is multilateral, meaning that a user can bridge directly between any two chains within the Layer Cake network.

In development by an ecosystem partner.

Why

Existing smart contract bridge designs suffer variously from centralization, poor safety guarantees, fragmented liquidity, latency and chain reorganisation risk. Layer Cake is designed to be a fast, more secure cross-chain bridging approach that unifies liquidity and mitigates chain reorganisation risk.

How

Layer Cake secures each bridging event with 1:1 collateral in the same currency that is being bridged. Once the crossing is complete and the wrapped asset is in the user’s account, the collateral is unlocked, ready to be used in another crossing. For this reason this collateral is termed “bandwidth”, because it dictates how much value can move across the bridge at any one time and its existence renders Layer Cake trustless.

The collateral securing bridging comes from the bridge’s operators, who are called bandwidth providers. They take a small fee from each transaction that they secure. Bandwidth providers cannot trigger a bridge transaction for a value higher than the amount of collateral they have locked. Additionally, bandwidth providers put up a second identical amount of collateral to cover the chain reorganisation risk.

The amount that can cross the bridge at any one time is dictated by the total bandwidth held by the bridge. Like physical bridges, Layer Cake bridges can handle any amount of “traffic” flowing across them over time; they only restrict the amount of traffic that can transit simultaneously. They can also handle any amount across the bridge with a suitable delay for safe cross-chain communication, regardless of how much bandwidth is available.

Fast, decentralized, multilateral, insured

bridging for smart contract tokens.

Fast, decentralized, multilateral, insured bridging for smart contract tokens.

Lower risk decentralized bridging

User funds are protected by collateral whilst in transit between chains and bridging transactions are protected against chain reorganisation.

Unified not fragmented liquidity

Layer Cake is multilateral. This means you can bridge a token, for instance wrapped ETH, from multiple origin chains to a single destination chain and receive the same token representation regardless of where it came from.

Fast

Bandwidth collateral is used to secure bridging events. This means that Layer Cake can operate rapidly whilst remaining secure.

Earn rewards

Users can earn FLR by becoming bandwidth providers for Layer Cake, plus receive rewards from the cross-chain incentive pool for using Layer Cake bridges.