4. Core Components
Recycling Liquidity Pool
Purpose: Provides immediate liquidity on destination chains and self-replenishes when bridged tokens arrive.
Key Responsibilities:
Maintain token balances on destination chains
Track health metrics and adjust fees accordingly
Provide tokens to users instantly
Receive and process bridge settlements
Implement circuit breakers for security
Key Parameters:
Initial Pool Size: $10-25K per token per chain
Max Transaction: 10% of current pool size
Min Health Ratio: 15% before emergency mode
Fee Range: 0.2-0.5% based on health
Integration Points:
Flash Loan Handler
Bridge Adapter
Fee Controller
Operation Registry
Flash Loan Handler
Purpose: Manages flash loan operations on source chains and coordinates with recycling pools.
Key Responsibilities:
Integrate with flash loan providers (Aave, dYdX)
Process user swap requests
Coordinate with bridge adapters for token transmission
Generate and track operation IDs
Handle security and error conditions
Key Parameters:
Provider Priority: Aave > dYdX > Maker
Flash Loan Fee: Provider-dependent
Timeout: 5 minutes for source operations
Integration Points:
Flash loan providers
Bridge adapter
Operation registry
User interface
Bridge Adapter
Purpose: Provides a unified interface to multiple bridge protocols for resilient cross-chain transfers.
Key Responsibilities:
Manage integrations with multiple bridge protocols
Monitor bridge health and performance
Route operations to optimal bridges
Handle bridge failures and retries
Track settlement status
Supported Bridges:
LayerZero
Axelar
Wormhole
Across (future)
Synapse (future)
Integration Points:
Bridge protocols
Flash loan handler
Recycling liquidity pool
Operation registry
Operation Registry
Purpose: Tracks and coordinates cross-chain operations across the protocol.
Key Responsibilities:
Generate unique operation identifiers
Track operation status across chains
Coordinate between source and destination chains
Handle timeouts and recoveries
Provide operation history and analytics
Key Parameters:
Timeout Window: 6 hours
Max Pending Operations: 1,000 per chain
Retry Attempts: 3 before manual intervention
Integration Points:
Flash loan handler
Recycling liquidity pool
Bridge adapter
Monitoring system
Fee Controller
Purpose: Manages fee calculation, collection, and distribution.
Key Responsibilities:
Calculate fees based on pool health
Collect fees from operations
Distribute fees to stakeholders
Adjust fee parameters based on market conditions
Track fee metrics and performance
Fee Distribution:
Recycling Pool Growth: 40%
Protocol Treasury: 30%
Insurance Fund: 20%
LP Incentives: 10%
Integration Points:
Recycling liquidity pool
Protocol treasury
Insurance fund
Analytics system
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