What Is Router Protocol (ROUTE)?
The Router Protocol is a cross-chain protocol that focuses on bridging assets across multiple Layer 1 (base layer blockchain architecture, e.g., Ethereum) and Layer 2 (off-chain network lying on top of the layer one blockchain) networks using stablecoins as a medium of exchange.
In addition to the transfer of assets, the Router Protocol also enables the safe and transparent flow of arbitrary messages across chains, thus extending DeFi's composability across different blockchains. The protocol has the following features:
Cross-Chain Swap:With Router Protocol, users can convert an asset into different asset on another blockchain. For example, users can swap the SHIBA token on Polygon for the CAKE token on BSC.
Flexible Fees:Users can pay Router Protocol transaction fees in multiple ways, using USDC or the ROUTE token. An additional platform incentive is for the community, where users get 50% off payment fees in ROUTE.
Modular Mesh Network:The Router Protocol builds a mesh to connect different blockchain networks. The mesh network is more scalable than traditional networks and acts as a link between two blockchains.
Cross-Chain Settlement Engine:The Router Protocol ensures that the user's funds are not blocked and provides the settlement of all transactions.
Proprietary Pathfinder Algorithm:The router uses a pathfinder algorithm to find the ideal path for cross-chain exchanges.
Plug and Play for Developers:Router Protocol allows developers to leverage the software development kits (SDK) to build complex cross-chain blockchain applications.
AMM Fallback: The router protocol uses DFYN AMM as a backup source during the lack of stable assets to enable cross-chain asset transfers. While the router can connect to any AMM or DEX, it is optimized to work with the internal DEX, DFYN Exchange, to ensure transaction completeness. AMM is a tool utilized to supply liquidity (token pool) in decentralized finance (DeFi) without the intervention of a third party to set the price of an asset.
ROUTE is the native token of the protocol. The ROUTE token allows users to use their token to contribute to governance by voting on router proposals for protocol changes. The Router Protocol imposes cross-chain transaction fees, split between validators and liquidity providers.
Users who pay the transaction fees with ROUTE tokens get a 50% discount. Also, Router Protocol enables users to pay a combined (gas plus transaction) fee in ROUTE tokens.
History of Router Protocol (ROUTE)
Router Protocol was founded in Singapore in 2020 by Ramani Ramachandran, Shubham Singh, Chandan Choudhury, and Priyeshu Garg.
