Chain-native characteristics are leading to excessively fragmented, disconnected, and severely imbalanced liquidity in the on-chain world. Statistics show that currently around 80% to 90% of liquidity is locked in EVM applications, which poses challenges for the establishment and development of emerging ecosystems and hinders innovation in Web3. Many emerging ecosystems are forced into a continuous battle for liquidity due to the lack of good multi-chain interoperability solutions.

An obvious example is that the anticipated airdrops and wealth effects of emerging Layer 2 and their related ecosystem applications can attract the attention of users in the circle. However, the cost and threshold of entering new public chains deter most users. These users mostly come from mature ecosystems like Ethereum and BNB Chain, but the high costs and thresholds of traditional cross-chain bridges hinder the participation of the majority of users. In the post-DeFi era, the industry has consistently explored how to achieve efficient, secure, and low-cost asset flow across multiple chains while providing users with a seamless experience.

The PicWe project is one of many explorers. It is based on a series of technical solutions including the Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP), Dynamic Liquidity Matrix (DLM), and Programmable Token Transfer. It has pioneered a cross-chain trading model characterized by a bridge-less and trustless trading mode (CATM) on Movement, aiming to create the next generation of full-chain liquidity infrastructure.

As an innovator in the cross-chain field, PicWe's solution has received broad recognition in the market. It is reported that the project stood out among 2,100 participating projects at the 'Battle of Olympus' hackathon held by Movement Labs, winning first prize in the DeFi track. Meanwhile, PicWe has shown remarkable growth momentum over the past three months. Since its launch, the project has attracted 727,000 users, handling 221,000 interactions from 163,000 unique addresses, with a total transaction volume reaching 326 million dollars.

As an outstanding representative of cross-chain solutions in the Movement ecosystem, PicWe has not only solidified its leading position in the Movement ecosystem but is also rapidly emerging as one of the optimal full-chain liquidity infrastructures.

How does PicWe achieve bridge-less cross-chain interaction?

In traditional cross-chain trading, cross-chain bridges usually play a crucial intermediary role, typically helping traders achieve asset transfers across different chains through a series of methods such as locking and wrapping. While traditional cross-chain bridges have made significant contributions to the liquidity interactions in the early blockchain world, their drawbacks are also very evident.

In fact, a cross-chain transaction based on a cross-chain bridge typically involves a series of operations such as locking, minting, and redeeming, and each step usually requires the user to pay a gas fee. Therefore, a single cross-chain transaction not only incurs relatively high friction costs for the user but also increases many cumbersome transaction steps and higher transaction delays. Of course, traditional cross-chain bridges even exacerbate liquidity fragmentation, as some cross-chain solutions choose to have assets exist in the form of independent wrapped tokens on different chains, such as WBTC, which reduces the overall liquidity and availability of assets.

A more concerning issue is security. Many cross-chain bridges rely on centralized or semi-centralized custodians to ensure the safety of assets locked on the source chain, leading to extremely high single-point risks. Even with the introduction of some PoS verification groups, as liquidity on a single chain decreases, the cost of attacks can significantly lower, increasing the risk of malicious actors attacking it. In fact, the exploration of early interoperability has led to a series of security incidents, which not only sparked controversies but also caused many people to lose confidence in it.

Previously, Connext's founder Arjun Bhuptani proposed the concept of 'The Interoperability Trilemma', pointing out that it is difficult to simultaneously meet the following three characteristics when achieving interoperability between blockchains: generality (the ability to transfer arbitrary data between two chains), scalability (the ability to be deployed quickly on heterogeneous chains), and trustlessness (minimizing trust assumptions).

It is evident that cross-chain bridges indeed play a very important role in the industry's development, but they are merely a temporary solution and certainly not the final state of cross-chain solutions.

Figure: The Impossible Triangle of Cross-Chain

For PicWe, rather than continuing to innovate on the existing cross-chain bridge idea, it has constructed a decentralized cross-chain interaction system that does not require intermediaries by introducing a series of solutions such as state channels and liquidity incentives. Users only need to verify on the source chain to achieve cross-chain transactions of assets across multiple chains.

Chain Abstract Trading Model (CATM)

The PicWe cross-chain trading system is primarily driven by the Chain Abstract Trading Model (CATM), which deploys contracts across multiple chains to update and coordinate transaction statuses, and can serve different pairs of chains at any time by building a unique Omni-Chain Permissionless Bidding Orchestration Protocol.

In fact, the cross-chain liquidity of traditional bridges relies mainly on locking sufficient assets on both the source and target chains to ensure solvency at both ends. When the asset reserves on the target chain are insufficient, cross-chain transfers become inefficient or even impossible. However, PicWe's CATM model does not rely on locking or minting assets to ensure liquidity, but rather builds an incentivized LP system to 'seek outward'.

Specifically, the contracts deployed by PicWe can be understood as a full-chain liquidity pool, whether on the source chain or the target chain, which is provided by LP roles to offer liquidity and incentivization.

When users with cross-chain trading needs deposit assets into the source chain contract, it is similar to injecting assets into the liquidity pool of the source chain. They select the corresponding target chain, fill in the address, and after completing the multi-chain payment request through single-chain signatures to the Omni-Chain Permissionless Bidding Orchestration Protocol, an order is generated. After the contract records the user's assets, distributed relayers will be responsible for safely transmitting the user's transaction status on the source chain to the target chain, including information such as transaction date, ledger, and order details, achieving state and data transfer.

For the target chain contract, after verifying the validity of the source chain contract's signature and checking whether the source chain transaction meets the required block confirmation count (delayed confirmation to prevent double spending, oracle manipulation, flash loans, etc.), the target chain contract pool will finally release assets to the user-specified address.

Most importantly, the CATM system continuously possesses the ability for liquidity rebalancing.

In the past, LP users would be able to earn farming incentives by providing liquidity to contract pools across different chains, ensuring that the contract pools or liquidity pools on different chains remain sufficient and dynamic.

When liquidity is insufficient on the target chain, PicWe seeks more assets from LPs or other liquidity providers through a Dutch auction method. This method sets an initial price for an asset and continuously lowers the token price as liquidity becomes more abundant (the incentive effect decreases). For LPs, the difference in liquidity represents an arbitrage opportunity; the greater the difference, the greater the arbitrage opportunity. Thus, a Dutch auction transaction will quickly attract a large number of LP arbitrageurs, ensuring that the target chain contract pool recovers liquidity as quickly as possible while also ensuring optimal cost for liquidity replenishment.

Based on this system, if a particular chain has insufficient liquidity, PicWe will also transfer assets from other chains to the liquidity-deficient chain through the aforementioned rebalance mechanism to ensure ample and balanced liquidity between different chains.

Thanks to PicWe's cross-chain liquidity capabilities and the liquidity differences between different chains, liquidity providers can earn returns simultaneously across multiple chains, breaking the limitations of single-chain liquidity pools. Similarly, investors can optimize returns by aggregating liquidity earnings from all supported chains.

Thus, we see that in the above process, PicWe's solution does not involve the native minting and redeeming of tokens and does not require custodianship of user assets. PicWe itself directly transmits native asset information from the source chain to the target chain based on programmable token transfer technology, maintaining the integrity of assets in their native states and liquidity on both the source and target chains, maximizing the efficiency of cross-chain asset transfers while ensuring the entire process is completely decentralized.

The bridge-less solution of 'more, faster, better, cheaper'

Based on the above technical characteristics, PicWe's bridge-less solution is presenting advantages of 'more, faster, better, and cheaper'.

More

Traditional cross-chain solutions are limited by the types of tokens provided by liquidity pools, making it impossible to support cross-chain purchases of medium to long-tail assets. For instance, it is difficult for us to directly use USDT from the Base chain to purchase PNUT assets on the Solana chain.

It's like in supermarkets or warehouse shopping, where users can only purchase designated goods (tokens) provided by suppliers (LPs). Due to inventory holding costs, the types of goods available in supermarkets or warehouses are limited. To purchase any goods, one can only do so through online P2P methods.

PicWe's Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP) is creating a decentralized 'online mall' that allows users to buy any token on any chain, meaning that through PicWe, users can use USDT from any chain to purchase any asset on any chain.

Fast

Traditional cross-chain solutions require users to first exchange assets (such as USDT) from the source chain for assets accepted by the cross-chain bridge (such as ETH) before they can perform cross-chain transactions. After completing the cross-chain transaction, users still need to exchange the assets into what they wish to purchase (for instance, exchanging ETH for PEPE). The entire transaction process has too many steps, and the chain is too long, leading to a poor user experience.

In the process of purchasing full-chain assets through PicWe, it can be completed in one step on-chain, without the need for cross-chain or swaps throughout the entire process. Whether it is an EVM chain or a heterogeneous chain, transactions can be completed within one minute.

Good

PicWe's bridge-less solution breaks the constraints of the cross-chain impossible triangle. It achieves on-chain interaction of full-chain assets in a completely decentralized manner, avoiding the risks that past cross-chain protocols posed in terms of using and transferring user assets. This bridge-less solution 'does not touch' user assets from start to finish, preventing both project maliciousness and hacker attacks.

Save

The bridge-less solution can save costs on cross-chain bridges, swap fees, and gas fees. The currently popular intent trading and chain abstraction solutions only replace users in performing complex cross-chain operations, and the multiple swaps, cross-chain, gas, and other fees incurred still need to be borne by the users. Through PicWe, users essentially pay USDT to directly purchase tokens on the target chain, saving all intermediary fees, with each transaction cost controllable within 1 USDT.

Currently, PicWe has taken the lead in practicing based on this set of solutions on the Movement stack. Based on the Movement network, PicWe supports users to seamlessly trade assets on any blockchain, such as traders being able to purchase any token on other chains, including BTC on the Bitcoin blockchain, using USDT on the Movement network.

PicWe's capital efficiency

Through the unique Dynamic Liquidity Matrix (DLM) technology, PicWe has a significantly obvious advantage over traditional cross-chain solutions in terms of capital efficiency. The LP pool provided by PicWe is no longer a traditional single trading pair pool. Its USDT pool continuously provides liquidity for different trading pairs in real-time. Moreover, liquidity is provided on-demand; only when a user submits a trading request for a specific token does the USDT in the pool provide liquidity for the corresponding token, greatly enhancing the profitability of the LP pool.

We see that in the above image, the left side represents traditional liquidity solutions while the right side represents PicWe's solution.

In traditional liquidity solution examples, the total liquidity is $18B, but this liquidity is dispersed among different chains and bridges: the total liquidity is $18B, but this liquidity is dispersed among different chains and bridges.

  • Each chain (such as Chain A, Chain B, Chain C, Chain D) has $4B in liquidity, while bridges (such as Bridge AB and Bridge CD) hold $1B in liquidity each.

  • Each chain has multiple assets (Token1, Token2, Token3, Token4), with each asset having a liquidity of $1B.

We can intuitively see that the liquidity of traditional cross-chain bridge solutions is extremely fragmented, with liquidity between chains and bridges unable to interoperate, leading to low capital utilization. When the liquidity on a single chain or bridge is insufficient to meet large transaction demands, it is easy to cause price slippage, and assets on each chain are independent of each other, making it difficult to integrate and utilize.

In PicWe's solution, the dynamic liquidity matrix abstracts the chains and integrates the dispersed $18B liquidity into a single pool that can be called across chains. Assets (Token1, Token2, Token3, Token4) on each chain achieve interconnectivity through the PicWe system. Once liquidity is unified, users on each chain can share the overall liquidity, avoiding transaction failures or high slippage caused by insufficient on-chain assets.

Based on the CATM trading system and the dynamic liquidity matrix, PicWe does not need to inject ineffective liquidity for each chain separately, significantly optimizing capital allocation, while also allowing liquidity providers to earn up to 30% APY through PicWe's protocol. Currently, the LP yields offered by mainstream DEXs typically do not exceed 10%, and due to the abundance of liquidity over the years, there are not many considerable arbitrage opportunities for LPs.

PicWe’s revenue stems from liquidity differences. The liquidity differences between different assets and chains will certainly exist in the long term. This means that PicWe will be able to provide considerable arbitrage returns to LP users for many years, ensuring the efficiency of the cross-chain system while meeting the needs of multiple roles.

B2B2C

From the perspective of C-end users, PicWe can be a good tool for cross-chain asset transfers, cross-chain trading, and yield generation. However, PicWe is not just a To C solution; it aims to pursue a B2B2C route.

In fact, PicWe is not merely defined as a tool, but rather defines itself as an underlying cross-chain liquidity facility. It allows all on-chain applications to integrate with it through an open SDK and gain full-chain expansion capabilities through its technical solutions.

For example, for a DEX, it can integrate with PicWe based on PicWe's SDK, allowing the DEX to further provide users with cross-chain trading capabilities. This can even lead to further innovative trading products and derivative products, enhancing platform functionality and capturing users through better potential returns. For PicWe, by becoming an underlying facility and serving B-end applications, it can indirectly bring the users of these collaborators into the ecosystem and accelerate the large-scale adoption of its solutions.

Conclusion

PicWe is reshaping the cross-chain interoperability system, creating a new solution through a CATM-driven cross-chain architecture. Its bridge-less structure not only minimizes liquidity fragmentation but also enhances security and significantly reduces the costs of cross-chain interoperability. At the same time, leveraging the OLBC model, PicWe provides a robust mechanism to maintain network stability and incentivize liquidity contributors.

As a brand new cross-chain interoperability system, PicWe not only breaks through the 'Interoperability Trilemma' but also provides a scalable alternative to traditional cross-chain bridges. At the same time, through new expansion and combination methods, it redefines the paradigm of cross-chain interoperability, providing a new foundation for the on-chain world to move from fragmentation to unity.

About PicWe

PicWe relies on a series of technical solutions, including the Omni-Chain Permissionless Bidding Orchestration Protocol (OPBOP), Dynamic Liquidity Matrix (DLM), and Programmable Token Transfer, to launch the industry's first cross-chain trading model characterized by a bridge-less and trustless trading mode (CATM) on the Movement platform. This initiative aims to build the next generation of full-chain liquidity infrastructure.

By building this full-chain liquidity infrastructure, PicWe hopes to promote innovation in decentralized finance and bring infinite possibilities to the B2B2C market.

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