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Announcing The Verto Ethereum Bridge

Tate Berenbaum, John Letey
February 18th, 2021 · 3 min read

Introduction

The past few months have been extremely busy for the team, as we’ve been working towards streamlining user adoption strategies for profit-sharing communities. With many new permaweb apps out in the wild, this has been a large topic of discussion throughout the Arweave Dev Discord and Arweavers Telegram. After weeks of design iterations, development, and testing, we’re finally ready to release our first step towards this goal.


The Bridge

Starting today, you can access the next phase of Verto and permaweb adoption with a fully-functional, decentralised liquidity bridge to the Ethereum Network. Now, with just one click, users are able to buy their first profit-sharing token and step into the new web.

The new Ethereum Bridge allows Verto users to seamlessly swap between ETH, AR, and any PST. With the bridge, Arweave and profit-sharing ecosystems can leverage the liquidity and widespread usage of Ethereum to onboard users and grow their communities, while utilizing Arweave’s full power in parallel.

ETH Tips

With the new bridge, VRT holders now have the capability of earning tips in ETH from trading fees. We’re very excited about this because it is the first usage of cross-chain rewards in a Profit-Sharing Community.

To learn more about the new cross-chain wallet linking specification, visit the ArLink Repository.


How does Verto know where to pay your tips or swaps? It doesn’t, or at least, not by default. To enable this feature, visit verto.exchange/link to link your Ethereum wallet address to your Arweave wallet. Alternatively, this tool is also deployed to the permaweb.

ArLink Image

Note: To earn ETH tips, you must link using the Arweave wallet that contains VRT.


How to Use the Bridge

With the release of the Ethereum Bridge, we decided to rethink the user-experience when swapping on Verto. The new unified interface includes the features of the old interface, but it also seamlessly integrates the bridge.

In order to interact with the Ethereum Bridge, visit the new Swap page on Verto.

Interface Image


Technical Breakdown

Before taking a deep dive, it’s important to understand the mechanism powering the protocol:

/ˈtrādiNG ˈpōst/

A server that watches an Arweave wallet for incoming transactions. Each trading post has its own orderbook and API, and each is incentivized to handle trades fairly. With the new Ethereum Bridge, trading posts monitor an Ethereum wallet as well.

Want to start a trading post of your own? Check out the documentation!

AR → ETH

When swapping AR for ETH, a user sends the AR in a transaction, specifying that it’s for an ETH swap. In this Arweave transaction, there is also a Rate tag that carries the price at which you’re swapping.

ETH → AR

Similar to swapping between AR and PSTs, swaps with ETH are triggered with an Arweave transaction. To tell the trading post that you’ve submitted some ETH, you must also submit a “trigger” Arweave transaction with the Ethereum transaction hash when iniating a swap. Then, the trading post batches these hashes together over 10 minute intervals, and after each period of time, it loads the Ethereum transaction data.

The trigger transactions and batching are methods of minimizing the number of requests to Ethereum nodes, which allows trading posts to interface with their own custom or third-party Ethereum nodes in a non-intensive and non-costly way. In fact, the intensity is so low that trading posts are 100% sustainable on the free plan of Alchemy.

Takeaways

After transactions are received on either chain, the trading post stores the data associated with these swaps in a local orderbook database. Every trading post’s orderbook is accessible from the /orders route of its API. For example, you can see Vertoshi’s orderbook here.

Verto uses a one-sided orderbook, meaning that a rate field is only attached when swapping AR → ETH or PST → AR in an effort to preserve liquidity and increase speed of matching open orders, therefore improving the user experience. This also means that ETH → PST requires no rates.

You can now integrate the Ethereum Bridge into your own applications with the Verto Library.


Get Involved

The Verto Community is actively growing, and we’d love for you to join us! The Verto Protocol codebase is completely open source, so feel free to make a pull request with any additions you see fit.

Ξ 🦔 🦔 🦔

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