cBridge

Bridge

cBridge allows anyone to transfer assets across blockchains by simply providing liquidity (to earn bridging fees). It is built on top of the Celer Inter-chain Message Framework.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Celer's cBridge is a multichain bridge that allows for the transfer of crypto assets across 15+ networks via an instant, low-cost design.
What we like less
Requires more trust assumptions as the protocol's consensus mechanism relies on an extrernal, trusted validator. Validators are required to stake CELR tokens as a form of collateral which can result in negative feedback loops.
What it means for you
cBridge offers several liquidity pools for you to earn attractive yields from bridging fees and further benefits from its protocol token emissions.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $88.4M (Rank #48)
  • TVL Ranking by Bridge: #4
  • Blockchain: Ethereum, Binance, Arbitrum, Optimism, Avalanche, Shiden, Polygon, Aurora, Boba, Metis, Fantom, Heco, OKExChain, xDai, Celo, Syscoin, CLV, Oasis, Conflux, Milkomeda, Moonbeam, REI, Moonriver, Astar, Harmony
  • Chain TVL
    • Ethereum: $61.13M
    • Binance: $9.72M
    • Arbitrum: $6.13M
    • Optimism: $3.19M
    • Avalanche: $3.18M
    • Others: $5.08M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including CertiK and PeckShield
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Core contracts require on-chain voting for parameter updates
  • 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 cBridge

How cBridge works

cBridge uses liquidity pools between the source and destination chain to enable cross-chain transfers. The bridge fee is dynamically adjusted based on the balances of the two liquidity pools using the StableSwap pricing curve (popularized by Curve). The core component of cBridge is the Celer State Guardian Network (SGN), which is a Proof-of-Stake (PoS) blockchain built on Tendermint. SGN uses the same security mechanisms as L1 blockchains like Cosmos and Polygon PoS chain, with staking and slashing implemented on Ethererum. SGN serves as the message router between different chains, routing messages and cross-chain fund transfers. Nodes have to stake CELR tokens to join the consensus process of the SGN as a validator and are slashed if they behave maliciously. Currently, these nodes are operated by trusted third-parties including Binance, InfStones, OKEX, Stakewithus, Unaggii, and Stakefish.

How cBridge makes money

cBridge nodes earn a portion of all transaction fees while operating via the SGN. Liquidity providers (LPs) earn the remaining portion of transaction fees and inflationary protocol emissions by providing liquidity to specific pools on cBridge. CELR stakers also earn transaction fees and staking rewards without running a node.

How you make money on cBridge

You can earn a portion of all protocol fees by staking CELR via the SGN. CELR stakers earn staking rewards and fee rewards from cBridge in return for producing blocks and providing economic security to the Celer network. You can also earn yield by providing liquidity to a sepcific liquidity pool on cBridge. Currently, 50% of fee earnings are distributed to SGN delegators and stakers, and the other 50% goes to cBridge LPs.