Mayan Finance Integrates Swim Protocol
TLDR: Mayan Swap integrates with Swim -a cross-chain AMM for native stablecoins- to enable users to seamlessly swap native stablecoins across 8 supported chains.
Mayan Swap is the product of Mayan Finance, offering cross-chain swaps using Wormhole message passing technology and the Serum Orderbook.
We offer single-click cross-chain swaps from EVM chains. In this post we’ve covered the basics of Mayan Swap and how it works.
Dominance of Stablecoins
The term stablecoin refers to the tokens pegged to USD; this makes them convenient for valuing other assets in the crypto world.
Let’s take a quick look at the top pools of the №1 DEX on Ethereum. As you can see, 9 out of 10 pools with the most trading volume include native stablecoins.
This is also true for any other decentralized exchanges and even centralized exchanges. You can read more details about the dominance of stablecoins in this post by Aw Kai Shin.
The conclusion is that stablecoins are the preferred assets for users to trade with and it’s absolutely vital for any cross-chain exchange to support native stablecoins in order to gain mass adoption.
Bridging Stablecoins
Imagine we have a native token X in the source chain, and we want to bridge this asset to our desired destination chain. This usually happens using a lockup/mint and burn/unlock mechanism. To move assets from one chain to another, we create a new token on the destination representing the original token on the original chain. The new token is called a “Wrapped” token.
When we send the native token X from our source chain, the bridge locks the X tokens in a contract on the source chain and mints the same amount of “Wrapped X” on the destination chain. And when we want to transfer back, the “Wrapped X” tokens will be burned by the bridge, and the original tokens will be released.
Wrapped tokens bridged by different bridges are not compatible with each other. To overcome the liquidity fragmentation problem caused by various bridges, DeFi protocols usually pick one wrapped version of the native token as the canonical token. In the case of Solana protocols, canonical versions of foreign tokens are the ones that are bridged by Wormhole’s Portal bridge (with only a few exceptions).
But some institutes prefer to issue tokens on each chain separately, like $USDT and $USDC, so none of the bridged versions of these stablecoins are canonical.
So wrapped $USDT and wrapped $USDT that are bridged by Wormhole have limited liquidity and therefore very limited usability on Solana.
This leaves us with a big problem: if you want to move your stablecoins from or to Solana, you will receive the wrapped version of $USDC and $USDT on the destination chain, which is a different token from the native version of these coins. This causes frustration and confusion for bridge users as they are unsure if they can use the bridged tokens on the destination chain.
Swim Protocol was born to address this issue. It’s a cross-chain AMM that lets users exchange between native stablecoins on one chain with native stablecoins on Solana using pools of native assets.
They started with a hexapool that consists of $BUSD, $USDT and $USDC from BSC, Ethereum, and Solana but have since expanded to multiple chains supported by Wormhole’s Portal bridge.
Mayan and Swim
Up until now, users on Mayan Swap were not able to swap their native stablecoins or receive native stable coins; instead, when they were exchanging stablecoins, they had to use the wrapped version of $USDC or $USDT from Solana and receive these tokens instead of native stablecoins. Given the limited usability of wrapped stablecoins, it was no surprise that the integration of native stablecoins was one of most requested features by the users that tested Mayan during the first beta phase.
To overcome this problem, we initiated a collaboration with the Swim team to integrate Swim’s native stablecoin liquidity pools into the Mayan cross-chain swap infrastructure.
And now, we are proud to announce that with this integration, we have brought our user experience to a whole another level by pushing the boundaries of cross-chain swaps. With this integration, Mayan users can do cross-chain swaps using native stablecoins or receive native stablecoins on their desired destination chain.
Here you can see an example of a cross-chain swap using native USDT:
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