Crosscats, built using the Solver Network paradigm, built an MVP (minimum viable implementation) with only 650 lines of code, realizing the fourth paradigm in the BTC cross-chain solution, and achieving higher efficiency, more interactive and lower cost than the mainstream paradigm in the AltVMs➡️AltVMs and AltVMs➡️EVMs cross-chain market segments.
In the current crypto market, cross-chain bridges are a hotly contested red ocean. To what extent is this market segment involuted? From Arbitrum to Optimism alone, there are 24 different cross-chain bridge options. And this is not the cruelest. Due to the strong network effect and strong Matthew effect in the cross-chain bridge market, the four major players, Stargate, Across, CCTP, and Orbiter, currently monopolize ~90% of the cross-chain transaction volume, and the remaining 55 (within the scope of DefilLlama statistics) share ~10% of the market share.
However, even so, new players continue to pour into the cross-chain bridge track. Compared to DEX and decentralized lending protocols, the cross-chain bridge market always has new niche markets for new players to survive. Moreover, for on-chain players looking for early alpha opportunities in new L1/L2, cross-chain demand is primary and prioritized over trading and lending demands. Even better, cross-chain bridges can generate cash flow by charging fees and can enhance the liquidity and application scenarios of Native Tokens by creating cross-chain trading pairs based on Native Tokens.
These reasons have made the cross-chain bridge track remain one of the top choices for crypto entrepreneurs, even amidst intense competition. This includes Catalyst launching Crosscats.
Due to the previous combination of top VC financing creating expectations + points PUA + airdrop farming to create TVL and trading volume data, this traditional approach is no longer feasible after Layerzero. New players like Crosscats can no longer rely on these old tricks to achieve an exit.
So how to break the situation? The answer is to pursue PMF. It's complex to do, but simply put, it's two steps:
First step: Build based on the new product paradigm.
The product paradigm of cross-chain bridges has undergone three significant iterations: MPC multi-signature cross-chain bridge - PoS chain/Rollup as a relayer intermediary cross-chain bridge - Solver Network-supported cross-chain bridge.
The Solver Network, based on the RFQ market-making mechanism, has characteristics of anti-MEV, gas-free, and high capital efficiency for same-chain asset swaps, which AMM market-making algorithms do not have. The continued growth in trading scale and adoption of leading projects like CowSwap and UniswapX also validates the feasibility and robustness of the Solver Network in production environments.
Since it's so useful, there is no reason not to apply the Solver Network in the cross-chain asset swap scenario to compete with the current mainstream Liquidity Pool + AMM + Massage paradigm.
In fact, for new players in cross-chain bridges like Crosscats, they cannot afford the mainstream paradigm of TVL-heavy asset models. In contrast, during the same period, Stargate's trading volume reached $1 billion, with a TVL of $400 million.
How the multi-chain Solver Network standardizes user intent expression between homogeneous and heterogeneous chains. Crosscats is compatible with the ERC7683 standard launched in cooperation with Across and Uniswap.
To understand Crosscats' cross-chain implementation mechanism, start with the architecture of Crosscats' cross-chain bridge.
CrossCats is an intent-based cross-chain swapping protocol, and its architecture consists of the following layers:
Source chain layer: The chain executing the main business logic, including:
Reactor contract: Handles order initialization and verification.
Order server: Coordinates orders and matches them.
Solver: Execute cross-chain transactions.
Verification layer:
Oracle: Verifies transactions on the EVM chain.
SPV Client: Verifies Bitcoin transactions.
Challenger: Handles dispute resolution.
Target chain layer:
EVM Chain: Used for token delivery and oracle verification.
Bitcoin Network: Used for UTXO verification and SPV proof.
Order initiation and execution process:
User signature: The user signs the order description (e.g., '1 ETH for 3000 USDC').
Solver claim: The solver needs to provide collateral to claim the order.
Asset delivery: Different processing based on chain type.
VM to VM: Payment through Oracle contracts.
VM to BTC: Payment through Bitcoin transactions.
Payment release mechanism: CrossCats offers three payment release options:
a) Optimistic execution:
Assuming the solver has completed the payment.
Automatically released after the dispute period.
If there is a dispute, revert to explicit verification.
b) Explicit verification:
Verification proof can be submitted at any time.
Higher cost but faster speed.
Support for batch verification reduces costs.
c) Underwriting mechanism:
Responsibility for the order can be transferred to a third party.
Allow the initial Solver to quickly retrieve funds.
The insurer is responsible for subsequent verification.
Compared to mainstream cross-chain bridge paradigms, the Solver network new paradigm adopted by Crosscats has higher capital efficiency, lower costs for accessing new L1/L2, and is VM-independent. The downside is its weak composability, but AMM cross-chain bridge LPs usually rarely combine with other DeFi assets, so this downside is not a significant issue.
Second step: Target new incremental markets.
As described at the beginning of the tweet, the landscape of the existing market for cross-chain bridges is already very solid, so lightweight new players like Crosscats should focus on new incremental markets. So where is the incremental market? The Catalyst team's judgment is that the cross-chain demand from AltVMs to AltVMs and from AltVMs to EVMs.
People used to think that EVM was sufficient; EVM compatibility and full EVM compatibility were once the biggest selling points for many L1/L2s. However, with the outstanding performance of Solana, Cosmos, and Sui in this cycle, people are gradually realizing the value of diversified VMs.
We know that EVM is good at token transfers, MoveVM excels in complex asset management, SVM specializes in high throughput parallel execution, and Starknet's ZKVM is suitable for matrix calculations, making it more compatible with AI large model training.
Currently, among the top ten most active chains in cryptocurrency, three are AltVMs. A new batch of protocols with altVM features, such as Movement, Fluent, Eclipse, Soon, and Fuel, which have fast block times, quick finality, parallel execution, local fee markets, and enhanced security features, are about to launch their mainnets.
For Crosscats, entering the altVMs cross-chain market at this time allows it to enjoy the growth dividends of existing AltVM chains while seizing key ecological positions in new AltVM chains.
In particular, among AltVMs, there is a leviathan: the Bitcoin mainnet. We know what the core problem of the Bitcoin ecosystem is: how to achieve trusted, secure, and fast BTC cross-chain interoperability? Currently, there are three mainstream solutions: multi-signature Gateway based on Rollup paradigm, trustless bridge based on bitVM2, and third-party bridge using Massage + Liquidity Pool. Among them, the trustless bridge based on bitVM2 is currently in the white paper stage and has not yet been deployed to a real production environment.
Using the Solver Network paradigm to handle the process from ordinary VM to BTC is straightforward, but issues arise when going from BTC to VM, as assets cannot be directly 'pulled' from the Bitcoin network. Crosscats has specifically designed a Pseudo Solving mechanism to resolve this issue.
Taking the example of the user wanting to exchange 1 BTC for 50000 USDC:
Reverse order creation:
Users do not directly create an order for 'BTC for USDC'.
But looking for a reverse order: "50000 USDC for 1 BTC"
Quote collection:
Collect short-term Bitcoin quotes from Solvers through the order server.
These quotes have specific validity periods.
User action:
User as 'pseudo Solver'.
Select and quickly claim suitable reverse orders.
Complete the transaction with your own Bitcoin.
Complete the exchange:
The user receives the input asset in the order (50000 USDC).
This is exactly the asset the user wants to exchange.
Compared to mainstream solutions, Crosscats' BTC cross-chain user experience is faster, cheaper, and has higher capital efficiency and lower risk on the LP side.
Above.
