Hop Exchange is a multichain bridge connecting Ethereum with Layer-2 networks. Using Hop, users can send tokens almost instantly across networks instead of having to wait multiple days. There are two core pieces to the Hop protocol architecture that make this possible. A cross-network Hop bridge token that can be quickly and economically moved between L2’s or claimed on layer-1 for its underlying asset. Automated Market Makers to swap between each Hop bridge token and its corresponding Canonical Token on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.
The live Hop Exchange price today is $0.138645 USD with a 24-hour trading volume of $3,176,433 USD. They update the HOP to USD price in real-time. This is down 2.51% in the last 24 hours. The current CoinMarketCap ranking is #2881, with a live market cap of not available. The circulating supply is not available and a max. supply of 1,000,000,000 HOP coins.
If you would like to know where to buy Hop Exchange at the current rate, the top cryptocurrency exchanges for trading in Hop Exchange stock are currently MEXC, and LBank. You can find others listed on our crypto exchanges page.
Bridging assets across blockchain networks is not a new problem. Solutions used to bridge various layer-1 networks and variants thereof may be useful for bridging rollups as well.
Proof of Authority Bridges
Proof of Authority (PoA) bridges rely on a set of authorities to attest that a token has been locked up in its native environment and then mint a representation of that token in the destination environment. This method is efficient but introduces a new trust assumption: the authorities will remain honest. A dishonest majority of the authorities can steal the locked funds and flood the destination environment with tokens that are no longer collateralized.
The Hop protocol provides a scalable rollup-to-rollup General Token Bridge using a two-pronged approach:
Create a cross-network bridge token that can be quickly and economically moved from rollup to rollup or claimed on layer-1 for its underlying asset.
Use Automated Market Makers to swap between each bridge token and its corresponding Canonical Tokens on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.
The combined approach allows users to quickly and restlessly swap between layer-2 Canonical Tokens using the specialized bridge token as an intermediary asset.
Hop Bridge Tokens
Hop Bridge Tokens (e.g., ”Hop ETH”, ”Hop DAI” with symbols ”hETH”, ”hDAI” respectively) are specialized layer-2 tokens that can be transferred rollup-to-rollup in batches and act as intermediary assets in the Hop protocol. Each Hop Bridge Token represents a deposit in the layer-1 Hop Bridge contract. For example, if 4 ETH are deposited into the layer-1 Hop Bridge contract, 4 Hop ETH can be minted from a layer-2 Hop Bridge contract.
Hop Bridge token can be redeemed for its underlying asset on layer-1, which burns the Hop Bridge Token being redeemed on layer-2. When a Hop Bridge Token is transferred from rollup to rollup, it is burned on the origin rollup and minted on the destination rollup. As explained below, these immediate transfers are accomplished by allowing a ”Bonder” to front liquidity on the destination in exchange for a small fee. The Bonder’s liquidity is returned.
Automated Market Makers
Each Hop Bridge Token represents a layer-1 token and can be quickly and economically moved from rollup to rollup. Under normal network conditions, each Hop Bridge Token is worth exactly 1 of its L1 counterpart because it can be redeemed on layer-1 at any time. However, third parties on each rollup are not likely to adopt Hop Bridge Tokens directly. It is more likely that the Canonical Tokens they adopt are produced by the rollup’s Native Token Bridge or an Application-Specific Token Bridge as previously discussed. To complete the bridge between the layer-1 token and its Canonical layer-2 counterpart, an Automated Market Maker (AMM) can be deployed to enable swaps between each Hop Bridge Token and its corresponding Canonical Token (e.g., Hop ETH – Canonical L2 ETH).
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One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.