What is Router Protocol? Router Protocol is a cross-chain liquidity infrastructure that aims to seamlessly provide bridging infrastructure between Layer 1 and Layer 2 blockchain solutions.
To better understand Router Protocol, people can read some of the articles below:
- What is cross-chain? When Blockchains Are “Traded”
- Skin In The Game #1: Which Is The Best Bridge Currently
- What is Cross-Chain Transfer Protocol? Circle’s Ambition To Acquire Market Share
What is Router Protocol?
Overview of Router Protocol
Router Protocol is a crosschain-liquidity infrastructure platform that enables interoperability between two independent blockchains. Router Protocol can be understood as a platform that provides cross-chain bridging infrastructure between layer 1 and layer 2 blockchain solutions, allowing users to seamlessly swap their assets from different networks in almost instantaneous and low-cost way.
Router Protocol’s first major product is a bridge connecting the Polygon and Ethereum networks. Bridging Polygon and Ethereum will provide a scaling solution for Ethereum that is near-instant, inexpensive, and extremely flexible. This will allow users to get the best of both chains, Polygon users will benefit from Ethereum’s liquidity and Ethereum users will be able to take advantage of Polygon’s high bandwidth scalability.
Router Protocol operating mechanism
The operating mechanism of Router Protocol includes the following products:
- Sharding: DThe definition is the division of large sets of transactions into smaller sets, also known as shards, nodes (validation nodes) will be split into small sharding to resolve transactions and sharding is also used by many large-scale projects to support scalability.
- Advanced Consensus Protocols: Consensus protocol can be considered a backbone of a Blockchain, Consensus helps nodes on the same blockchain reach a common consensus to support an individual blockchain to deploy according to the developers’ direction.
- Plasma: Known as a layer-2 scaling solution, to support the creation of non-custodial chains, also known as sidechains. Sidechains assist in processing individual transactions without affecting the main chain when there is a problem or hack on the protocol, then only the sidechain is affected and not related to the chain. main part of the protocol.
- State Channel: State Channel is a technology that supports off-chain transactions to minimize on-chain transactions to help process more transactions, the above technology is used by Ethereum to improve the transaction throughput of the blockchain.
- RollUps: As a popular expansion solution on layer 2, similar to State channel and Plasma, Rollups also provides off-chain transaction methods to improve transaction throughput but in addition, it also helps reduce transaction fees and support support developers. Rollups also has a highlight: when the off-chain transaction ends, the transaction history will not be deleted but instead will be saved on the main chain.
Router Protocol Differences
The difference between Router Protocol includes the following factors:
- Create seamless liquidity between many different blockchains.
- Enables a wide range of use cases that leverage and scale the composability of DeFi across multiple blockchains.
- Promote liquidity migration and developer efforts towards various “emerging chains and solutions”.
- Ultimately creating a thriving multi-chain ecosystem.
- Unified Gas Fees: Use governance tokens to perform multi-chain transactions
- Cross-chain Governance: Supports users to participate in governance across multiple chains.
- Best Price Discovery: Helps trade at the best price connecting from many DEXs.
- Unified Aggregator: Enables easy communication and asset transfer between chains.
Router Protocol development roadmap
Quarter 4/2021:
- Start running the Router Protocol testnet.
- Audited by Certik & Halborn.
Quarter 1/2022:
- Launch Mainet Router v1 on Polygon and BSC.
- Start developing Router v2.
- Integrates with more EVM compatible chains –Avalanche, Fantom, Ethereum.
- Hacken audit.
Quarter 2 – Quarter 3/2022:
- Launched SDK (Software Development KIT), also known as software development kit.
- Start the Router’s CrossTalk Library.
- Integrates with many EVM compatible chains-Arbitrum, Optimism, HarmonyAurora, Cronos.
- Launch liquidity incentive staking programs.
Quarter 4/2022 – Quarter 1/2023:
- Router V2 launches.
- Integrate Non-EVM chain – Algorand, Solan
Investors & Partners
- December 1, 2020: Raised $480,000 from Seed Round at $0.175
- January 2021: Raised $100,000 from Private Round 1 at $0.20
- February 2021: Raised $281,000 from Private Round 2 at $0.275
- December 2021: Raised $4.10M from Funding Round
Core Team
- CEO/Co-Founder, RAMANI RAMACHANDRAN: You are a very successful person in the field of cryptocurrency. Since 2014, you have deployed many crypto projects and have achieved many great successes.
- CTO/ Co-Founder, SHUBHAM SINGH: He is a Full-stack Developer and Technical Architect in the blockchain field since 2016, he has a lot of experience in the programming field and has had a lot of success.
Tokenomics
Information about Router Protocol tokens
- Token Name: Router Protocol.
- Ticker: ROUTE.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x16eccfdbb4ee1a85a33f3a9b21175cd7ae753db4
- Token Type: Utility.
- Total Supply: 20,000,000 ROUTE
Router Protocol Token Allocation
- Seed Round: 3% total 600,000 ROUTE
- Private Round: 7.61% total 1,521,818 ROUTE
- Reward Pool: 17.22% total 3,444,000 ROUTE
- Ecosystem Fund: 25.42% total 5,084,000 ROUTE
- Team: 15% total 3,000,000 ROUTE
- Liquidity Provision Fund: 1.75% total 350,000 ROUTE
- Foundation: 20% of total 4,000,000 ROUTE
- Strategic Partners: 10% of total 2,000,000 ROUTE
Tokens Use Case
- Administration:Holders of ROUTE tokens can participate in voting on proposals related to modifications and upgrades of the Router protocol
- Revenue sharing: Router Protocol’s revenue comes from transaction fees and a portion of the revenue will be shared with validators as well as liquidity providers.
- Transaction fee reduction: Users can pay transaction fees when performing Cross-chain through Router.
- Unified Gas & transaction Fee: Use the ROUTE token or native token of the chain performing the transaction to pay cross-chain transaction fees.
Exchanges
Currently the $ROUTE token is traded on major exchanges such as: Gate, Kucoin, Uniswap…
Project Information Channel
- Twitter: https://twitter.com/routerprotocol
- Telegram: https://t.me/routerprotocol
- Medium: https://routerprotocol.medium.com/
- Discord: https://discord.com/invite/yjM2fUUHvN
- Github: https://github.com/router-protocol
Summary
Currently, there are many cross-chains providing liquidity on the blockchain, at many different stages varying in the number of assets and the difference in transaction fees as well as the speed of trading orders. Router Protocol can solve the above problems making the best use of comparable bridging solution approaches such as cross-chain data transfer to perform cross-chain actions.
Through this article, you probably have some basic information about the Route Protocol project to make your own investment decisions, and leave comments and suggestions for yourself in the next articles. Please!