Universal L2
The Universal L2 (UL2) is a versatile, secure, and cost-effective solution for cross-chain bridging of digital assets between different blockchains. It works by burning tokens on one L2, generating a validity proof of the burn, and using the native mint function of the corresponding L2 to natively mint assets.
Overview
Advantages
- Native Liquidity
- Unbounded Mint
Disadvantages
- Need to have access to the native mint function for the L2
Process
- The User submits a deposit transaction worth 100 USDT into the bridging contract on ETH L1 and receives 100 USDT on a ETH UL2 from the official bridge contract.
- The User submits a burn transaction for 100 USDT to the public burn address (e.g. 0xdeaddead..., 0x00000...).
- The ZKM Nodes generates a Proof of Burn for the User.
- The User submits the Proof of Burn and the redemption address to redeem to the AVA UL2 which mints 100 USDT from the official bridge contract.
- The User submits a withdrawal transaction worth 100 USDT from AVA UL2 and receives 100 USDT on AVA L1.
Notes
- Need to develop a way to manage access to the Universal L2 native liquidity network