CoolWallet is excited to collaborate with the leading cross-chain protocol XY Finance in a new partnership that will introduce a new Web3 asset bridge swap feature, accessible through both our hardware wallet range (CoolWallet Pro and S models) and hot wallet (access through our CoolWallet App).
Our new bridge feature leverages smart contracts to seamlessly facilitate crypto bridging or swapping for our users, making their lives easier, improving their assets’ security (no need for centralized exchanges!), and helping them save on transaction fees by using more affordable networks.
As part of our promotional launch campaign for November 2023, we will be offering a 0% service fee for a limited time and conducting some swapping tasks for up to $500 in the $XY token from 21 to 27 November 2023, so read this article and check us on social media like Twitter and our weekly newsletter (check for a popup on our homepage) for more info.
Also, check out our Step-by-Step Guide to Using Bridge Swap with CoolWallet and XY Finance, which we’ve also summarized further down in this article.
What is CoolWallet’s XY Finance Bridge Swap?
XY Finance’s crypto bridge solution empowers users to transfer tokens across different blockchain networks or within the same blockchain, enhancing versatility and user experience.
Here’s a simple example:
In order to exchange 100 USDT on Ethereum for 100 USDC on the same network, users can just use either XY Finance or 1inch on CoolWallet for a simple swap. However, to convert 100 USDT on Ethereum to 100 USDC on Polygon, it means you have to go cross-chain, and for this, XY Finance’s bridge via CoolWallet is your go-to solution.
Which Crypto Assets Can You Bridge Swap on CoolWallet?
CoolWallet’s XY Finance bridge feature will support token swap & bridge on Ethereum and leading layer-1 and layer-2 chains such as Linea, Base, Arbitrum, zkSync Era, BSC, Polygon, Avalanche, Optimism, Cronos, and Thundercore (on CoolWallet App). Both CoolWallet’s cold & hot wallet modules will support the feature.
Zero Fee and Social Task Rewards! (Limited Offer)
You’ll be happy to hear that for a limited period CoolWallet will charge a 0% service fee to use our swap feature. Please note however that an on-chain transaction fee will be levied.
CoolWallet users can also earn up to $500 in $XY from 21 to 27 November 2023 by completing tasks on Taskon!
Bridge Swaps: Mastering The Basics
Keen to learn more about bridges and why they’re important. Read on!
A “bridge” or “bridge swap” refers to the process of exchanging one type of cryptocurrency for another across different blockchain networks, which are usually incompatible with each other for various reasons. These ecosystems normally operate independently and have their own native tokens, smart contract functionalities, and consensus mechanisms. A bridge allows for the transfer of assets or information from one chain to another. This concept is crucial in the realm of decentralized finance (DeFi) and cross-chain interoperability (for example, see EVM-compatible chains). Let’s break it down for better understanding:
The Role of Swapping
Swapping, in a crypto context, means exchanging one cryptocurrency for another. This is commonly done through decentralized exchanges (DEXs) within the same blockchain network. However, when you want to swap tokens across different blockchains, you need a crypto bridge protocol to facilitate this.
How Bridge Swaps Work
A bridge swap combines these two functionalities. It allows a user to exchange a token from one blockchain (like Ethereum) for a token on another blockchain (like Binance Smart Chain) in a single integrated process. This involves the bridge recognizing the transaction on the originating blockchain, locking or burning the original token, and then issuing or unlocking the equivalent token on the destination blockchain.
While bridge swaps are incredibly useful, they also come with some serious risks. The security of the bridge is paramount, as vulnerabilities can lead to significant losses. Efficient bridges like XY Finance reduce slippage (the difference between the expected price of a trade and the executed price) and offer better swap rates.
Why It’s Important
Bridge swaps enhance the interoperability between different blockchain networks, allowing users to take advantage of the unique features of different blockchains without being restricted to a single ecosystem. For instance, a user can swap a token from a chain with high transaction fees (such as Ethereum)to a chain with lower fees (such as Solana, TRON or BNB Chain)to execute further transactions more economically.
So to summarize, a bridge swap in crypto is a sophisticated mechanism that allows for the exchange of tokens across different blockchain networks, playing a critical role in enhancing the liquidity, accessibility, and usability of various cryptocurrencies within the broader DeFi ecosystem.
Step-by-Step: How to Bridge Crypto Assets With CoolWallet
Here’s an easy step-by-step guide on how to use the bridge swap feature on CoolWallet:
Step 1: Select tokens on Marketplace’s Crypto Swap
Navigate to the Marketplace page and select “Crypto Swap”. Choose the tokens you wish to exchange, and make sure you select the right blockchains for these tokens that you want.
Step 2: Approve Swap Request
If your wallet hasn’t already authorized the sending token for use via XY Finance, you’ll need to complete a one-time approval process.
Step 3: Set slippage
Customize your swap/bridge settings by adjusting the slippage according to your preference. Slippage is the potential difference between the anticipated and actual results of a trade. A higher slippage increases the likelihood of trade success but may lead to a greater price deviation than expected.
Step 4: Confirm Swap
On the Order Confirmation and Transaction Confirmation pages, thoroughly verify all details before proceeding.
Step 5: Complete Swap
Finalize the authorization, and your transaction will be successfully completed.
And that’s all there is to it. Experience a new level of convenience and efficiency in crypto transactions with CoolWallet’s bridge swap feature!
About XY Finance
XY Finance is a standout cross-chain interoperability protocol that integrates a multitude of decentralized exchanges (DEXs) and bridge services. Its primary function is to facilitate seamless, one-click swapping across various blockchain networks, thereby enabling an unprecedented level of efficiency and convenience in the crypto space.
For users, this means the ability to effortlessly swap any token for any other, leveraging the most optimal transaction routes while accessing a wide range of tokens for ultra-fast transfers.
Conversely, developers can also greatly benefit from XY Finance’s advanced cross-chain API and widget. These tools are designed to assist projects in establishing connections across an extensive network of over 20 supported chains, significantly enhancing their cross-chain functionality and outreach.
