What is a router protocol? Overview of router protocol project?
A router is a multi-directional bridge that can expand the connection of layer 1 and layer 2 blockchains to allow contract-level data flow through them. This could be a token locked on the source chain and acquired on a target chain or an operation that starts on the source chain and is executed on the target chain.
Products of the Router Protocol project
Chain
A chain is where a transaction is started called a source chain, where a transaction is made called a target chain. During cross-chain transfer, the router protocol locks the user’s money on the source chain and frees them up on the target chain.
Bridge contract
Each blockchain supported by the Router protocol will have a bridge contract. On the source chain, the bridge contract locks the user’s assets. On target chain, the bridge contract aggregates votes from router nodes on proposals forwarded from the source chain. Once the number of delegates voting is reached, the bridge contract unlocks/mints tokens on the target chain. Whenever a transaction is submitted on the source chain, an escrow function is initiated on the bridge contract, which receives three parameters: destinationChainID, resourceID and calldata. The bridge contract creates a nonce for every deposit transaction and, depending on resourceID, authorizes the call to a separate processing contract.
Fee management tissue
With a router, users will have maximum flexibility in choosing tokens to use for transaction fees. Router Protocol uses a fee management module that estimates transaction fees every 30-60 minutes depending on congestion on different networks. This fee management module can support other tokens, giving users more flexibility.
Router’s UI
Router’s UI is an interface where users can interact with router bridge contracts. The interface is responsible for communicating with the algorithm that finds its way on the source chain before calling the bridge contract.
Pathfinder algorithm
Routers use proprietary path-finding algorithms to find the optimal route to move content from the source chain to the target chain.
General contracts
A dedicated contract that ParaRouter calls to execute transactions is specified by the finder algorithm. This contract is valid only during the transfer of discretionary assets (not stablecoins). For stablecoin transfers, ParaRouter calls the ERC20 processor directly.
Event handlers
Function calls from ParaRouters are authorized for processing contracts to ensure that the bridge remains in modular form. These contracts allow for customizable behavior when receiving transactions from ParaRouter. For example, ParaRouter will authorize a deposit call to lock ERC20 content on the source chain and execute an Execution call to unlock ERC20 content on the target chain. Each processor can handle multiple resources (e.g., tokens) as long as their contract address is registered with the processor.
Liquidity pool
Routers can plug into liquidity pools available on any DEX protocol. In the case of transferring non-reserve assets, the router will use these pools on the source chain to swap user-submitted assets into stablecoin assets and on the target chain to swap stablecoin assets into assets that users desire. DEX offers the best price and the least slippage that will be used to complete the order.
Router nodes
The Router Protocol maintains a set of nodes that listen to events on the source chain, create recommendations for those events, and submit signed proposals on the target chain as a vote. In order for a transfer to be accepted and sent across the bridge, it must receive enough votes beyond the prescribed threshold. All bridge contracts maintain a secure list of addresses so that votes received only from approved router nodes are reviewed.
Voting module
When a proposal is created on the source chain, other router nodes will vote for it by signing it. After voting thresholds are reached, the router protocol’s voting module will run a random voting function to select a node to executeProposal call. This is done to prevent multiple router nodes from calling executeProposal functions simultaneously.
Token information
General information
- Token Name: Router protocol
- Ticker: ROUTE
- Blockchain: Ethereum, Binance Smart Chain, Arbitrum, Avalanche.
- Token Standard: ERC-20, BEP-20, ARC-20.
- Contract:
- Polygon: 0x16eccfdbb4ee1a85a33f3a9b21175cd7ae753db4
- Ethereum: 0x16ECCfDbb4eE1A85A33f3A9B21175Cd7Ae753dB4
- BSC: 0xfD2700c51812753215754De9EC51Cdd42Bf725B9
- Arbitrum: 0x5298060A95205BE6Dd4aBc21910A4bB23D6DCD8b
- Avalance: 0xf44Ff799eA2bBFeC96f9A50498209AAc3C2b3b8b
- Total supply: 20,000,000
Token allocation
Token sale
- The project has not yet released information about the opening price of the funding rounds.
Token Use cases
- Join farming/staking.
- Project management.
- Payment of transaction fees (reduced transaction fees).
- Revenue sharing.
How to own ROUTE tokens
- Join farming/staking and get rewards.
- Buy on exchanges: Kucoin, MEXC Global, AschendEX, Gate.io
Roadmap and updates
Q2, 3 – 2022:
- Launch the SDK router.
- Integration with blockchain is not EVM (Terra, Solana).
Q4 – 2022 to Q1 – 2023:
- Launch router v2 – > dedicated blockchain to store the router’s infrastructure.
- Router’s multi-blockchain router standard.
- Leverage IBC to connect with the entire Cosmos ecosystem.
Project team, investors and partners
Project team
- Co-Founder, RAMANI RAMACHANDRAN: He is a very successful person in the field of cryptocurrencies, since 2014 he has implemented many crypto projects and has achieved great success.
- CTO/Co-Founder, SHUBHAM SINGH: He has been a Full-stack Developer and Technical Architect in the blockchain sector since 2016, he has extensive experience in the field of programming and has had a lot of success.
- Co-Founder, CHANDAN CHOUDHURY: He is head of strategy at Bitpolo, the leading cryptocurrency exchange in India. He is a consultant with more than 15 years of experience, he is also the Head of Ops & Market Research at Traderlab.
Investors and partners
Comments on the project (this is not investment advice)
Pros/cons of the project
- The interface is quite friendly and easy to use.
- There is an official product.
- Audited by Certik and Halborn.
Summary
In terms of tokenomic, the project plans to allocate tokens quite reasonably, balancing the part for the team and investors with the section for community development. However, the time to pay tokens to the team and investors is quite early, which adversely affects the token price when it is easy to face great selling pressure, in addition, it also shows the lack of commitment to accompany the project.
The project was developed by a team with many years of experience in the fields of programming and blockchain. In addition, the project is backed by many investors including the top two investment funds in the current market: Coinbase Ventures and Alameda Research. This helps the project attract a lot of trust and attention from users.
In terms of potential, the project develops a bridge protocol that has a fairly basic mechanism in the market today. The project’s products help users convert assets across a variety of platforms, making it more convenient to connect platforms closer together. Currently on the market there are quite a lot of similar projects and are occupying high market share such as Allbridge, Wormhole, Rainbow birdge … Therefore, the project needs to promote communication and product quality further to be able to compete with the above projects.
In terms of use cases, the project builds an ecosystem full of applications around ROUTE admin tokens. A very good buy demand of the project is that when users pay with ROUTE tokens will get a 50% discount on transaction fees. Therefore, the growth potential for token prices is already there, just waiting for the product quality to attract enough users to make the token price have a strong breakthrough.
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