Unlocking Significant Growth Opportunities via the eGold ERC20 Token Bridge

Lucian Todea
·
Dec 29, 2020
·
3 min read
https://bridge.elrond.com/

Conversion between native and ERC20 versions of our EGLD token is now possible through our swap bridge.

There are two important reasons for an ERC20 eGold token:

  • Accelerated integration of new platforms, such as eToroX trading platform or BitGo custody
  • Unlocking eGold’s potential in existing DeFi use cases

The new token bridge enables anyone to convert their tokens in an intuitive way and seize opportunities that exist outside of our mainnet.

Toward internet-scale interoperability

The conversion between the native and ERC20 version of the eGold token is perhaps the interoperability avenue with the most potential. This is why we have chosen to implement it first.

It enables access to growth opportunities like eToroX listing and BitGo custody. Others will follow as a result.

It also allows eGold owners to leverage their holdings in the existing DeFi landscape while anticipating the Elrond native DeFi opportunities.

Whether on the native chain or beyond, Elrond’s momentum is expected to grow significantly. Interoperability is the natural tailwind ushering this accelerated growth.

Important information

A pool of eGold has been locked in a treasury address on the Elrond mainnet and an equivalent amount of ERC20 EGLD tokens have been minted on Ethereum. This treasury pool will be used to buffer swaps, with more tokens to be minted or burned if required by swap volumes.

At all times, the balance locked into the native EGLD bridge treasury address will be equal to that of the EGLD ERC20 max total supply. The overall EGLD supply is therefore not affected.

All valid swaps will need to include a notarization transaction that will always come from the Notarization address mentioned above.

How to convert

Users wishing to convert their tokens can use the dedicated swap page: https://bridge.elrond.com

Select the type of conversion: EGLD native -> EGLD ERC20, or EGLD ERC20 -> EGLD native. They will indicate the destination address on the destination chain, where they wish to receive the converted tokens.

*A minimum of 5 EGLD is required to perform a swap.

A unique swap address will be generated and the swap request is notarized on the Elrond mainnet blockchain. The notarization transaction includes the uniquely generated swap address and the destination address.

Shortly after sending tokens to the unique address, an equivalent amount of converted tokens will be sent to the user’s destination address. Depending on the amount and how many swaps there are in the queues, the swap can take longer or not.

Note: an error will be displayed if the tokens are not yet in the generated address.

Thank you for your attention. You can reach out to us for support on our official channels listed below.


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Written by
Lucian Todea
Co-Founder and COO, Elrond Network.