Recently, cross-chain interoperability protocol Owlto Finance released its white paper, proposing Omni-Chain Liquidity Intent Decentralized Trading. It aims to integrate liquidity across multiple blockchains with intent-driven technology, tackling the liquidity fragmentation issue in Web3 caused by the proliferation of various L1/L2s.
Owlto Finance integrates liquidity across various blockchains with its “Bridge + Swap” services
Liquidity in DeFi fragments, as it dispersed among numerous layer-2/layer-1 networks. This fragmentation leads to intricate cross-chain transactions, long wait times, and high trading costs, hindering asset efficiency.
The interoperability protocol Owlto Finance tackles this by unifying omnichain liquidity with its “Bridge + Swap” services, facilitating liquidity flow between 50+ networks across ecosystems such as Ethereum, Bitcoin, and Solana. More integrated chains mean higher interoperability, especially when bridging diverse ecosystems and linking EVM and Non-EVM heterogeneous chains, enabling fund transfers with minimal slippage from Chain A to Chain B. As a result, Owlto has processed approximately 8 million transactions with a peak market share of 33% in the cross-chain field according to DefiLlama, boasting a total user base exceeding 2 million across 200 countries and regions.
Omnichain liquidity roadmap
Currently, Owlto Finance is enhancing its protocol to achieve intent-driven omnichain liquidity trading with intact decentralization and unique security mechanisms. The protocol utilizes smart contracts, zero-knowledge proofs, and AI technology, to construct an efficient and secure cross-chain transactions platform.
The goal is to simplify cross-chain operations and offer users experience with the least cost and time, making the trading experience just like operating on a single chain. Users only need to express their trading intent, and the protocol will optimize execution paths maximizing omnichain liquidity utilization efficiently with AI.
Krystal, the co-founder, stated:
"As a leading cross-chain pioneer, Owlto became the No.1 bridge within a year. The release of this whitepaper is a significant step forward for Owlto using advanced AI tech to revolutionize liquidity challenges in crypto. We're bridging the cross-chain liquidity gaps to connect the world."
Intact decentralization and security: zk-proofs and node operations
In Web3, decentralization and security are fundamental principles, yet security and privacy challenges persist, notably in cross-chain transactions. DefiLlama data shows over $2.8 billion stolen from cross-chain bridges, comprising 40% of total Web3 losses, while on-chain transparency can expose user intents, risking privacy. Owlto Finance introduced zero-knowledge proofs (zk-proofs) and node operations to ensure the safety of assets and the protection of privacy.
ZK-proofs ensure that the verifiers can confirm that user intent has been executed correctly without knowing the specific transaction information, preserving privacy, and safeguarding against MEV attacks.
To reduce single-point failures and enhance the security of asset flow between different networks, Owlto's node operations use a staking mechanism based on decentralized consensus. The protocol introduced diverse node incentive mechanisms and strict node penalty mechanisms to improve the overall stability and security of the system.
AI technology enables intent-driven omnichain liquidity trading
Owlto's intent-driven trading model diverges from traditional methods by eliminating the need to specify transaction paths. The protocol autonomously selects the most efficient path to fulfill users' desired outcomes at minimal cost and time, simplifying the trading process.
To enable this high degree of automation, the protocol nodes will evaluate various liquidity providers spanning various blockchains, such as decentralized exchanges (DEXs) and market makers. Subsequently, using intelligent routing and AI algorithms, the nodes will select the optimal cross-chain liquidity path to ensure that the transaction outcome aligns with the user's intent. Once the optimal routing is determined, the transaction will be executed by splitting the trade into smaller amounts to access high-quality liquidity.
AI technology is vital to realize intent-driven trading. The protocol utilizes AI algorithms to analyse historical data and real-time market conditions to predict shifts in liquidity, adjusting liquidity pool configurations in advance. Meanwhile, by optimizing trading paths through AI algorithms to find the best trading paths, users are ensured to obtain the highest quality liquidity with minimal transaction costs and time. Furthermore, the AI conducts comprehensive analyses to provide users and developers with insights into market dynamics and liquidity conditions.
About Owlto Finance
Owlto Finance is an intent-centric interoperability protocol, “Bridge the World with AI Agent”. Owlto provides cross-chain bridging services across 50+ various blockchains within the BTC, ETH, and SOL ecosystems.
With 2 million users in over 200 countries and regions, it ranks in the top three on DefiLlama based on the 24-hour number of transactions, reaching a peak market share of 33%. Owlto has completed two rounds of funding, totaling nearly tens of millions of US dollars, with a valuation of $150 million, backed by investors such as Matrixport, Bixin Ventures, CEIC, Presto Labs, Skyland, Hailstone, GSR, and others.
Link:
- Twitter: https://x.com/Owlto_Finance
- Website: https://owlto.finance/