Allbridge

Bridge

Allbridge is a cross-chain bridge that enables anyone to transfer assets across blockchains. It is designed with a lock-and-mint model where assets are locked on the source chain and minted on the target chain.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Allbridge is a cross-chain bridge that allows for the transfer of crypto assets between Ethereum Virtual Machine (EVM), Layer-2 and non-EVM compatible blockchains with support for a wide range of assets across several networks.
What we like less
Requires more trust assumptions as the protocol's consensus mechanism relies on an extrernal, trusted validator. Malicious actions can result in reflexivity as validators are required to stake ABR tokens as a form of collateral.
What it means for you
Allbridge offers you attractive yields across its automated market maker (AMM) partners and you can benefit from cheaper bridging fees by staking only a small amount of ABR tokens.
Information
Exploit/Hacks
One
Info
Key Metrics
  • TVL: $5.1M (Rank #149)
  • TVL Ranking by Bridge: #6
  • Blockchain: Solana, Ethereum, Binance, Polygon, Avalanche, Celo, Terra, Near, Fantom, Heco, Harmony, Fuse, Aurora
  • Chain TVL
    • Solana: $1.47M
    • Ethereum: $1.41M
    • Binance: $774.7K
    • Polygon: $641.75K
    • Avalanche: $301.14K
    • Others: $489.95K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Hacken audited in September 2021
  • Public team promotes accountability
  • One unmitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • Protocol could be susceptible to negative feedback loops
  • Externally verified bridge system that is reliant on an external set of validators who have to post collateral that gets slashed in case of malicious activities; the slashed collateral is used to reimburse user funds if stolen due to malicious actions
  • Bridge messages are validated by an external third-party that usually comprises a limited multisig
Things to know about Allbridge

How Allbridge works

Allbridge transfers are enabled through the protocol's proof-of-stake (PoS) design. Users can make four different transfers including send and receive native tokens, send native and receive wrapped asset, send wrapped and receive native token, and send and receive wrapped asset. Transfers are completed by a series of requests between the user, the smart contracts on the source and destination chain, and the validator. Validators play an integral role in the Allbridge ecosystem as every bridge transaction has to be confirmed by a two-thirds majority of validators. In exchange, the validators earn the bridging fees when a transaction is successfully signed. Validators must meet specific technical requirements and must stake ABR tokens as collateral; the staked funds may be slashed in case of bad actors.

How Allbridge makes money

Allbridge charges a fixed bridge fee of 0.3% for every cross-chain transfer. These fees are paid in the underlying token that is being transferred. Projects that wish to use Allbridge must pay a monthly subscription fee (paid in ABR token). Of all the protocol fees, 80% is used to buy ABR and distributed to the ABR staking pool and the remaining 20% is distributed to the team.

How you make money on Allbridge

You can earn a portion of all protocol fees by staking ABR in exchange for xABR tokens on a 1:1 basis. xABR represents your share of the staking pool per a specific blockchain. In addition to fees, stakers also earn inflationary protocol emissions. Rewards are added to the staking pool, increasing the number of ABR tokens in the pool, and thus xABR becomes more valuable over time. Stakers on a network also receive reductions in bridging fees for transactions sent from that blockchain.