Architecture
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The Universal Token Standard is built for seamless deployment, management, and cross-chain interoperability of omnichain tokens. Integrated with the Entangle Bridge protocol, UTS enables efficient, secure cross-chain transactions using a flexible framework of smart contracts and mechanisms like mint-and-burn and lock-and-unlock.
Each token has its own token pool, which simplifies cross-chain transfers by handling the necessary token actions. Token pools act as a secure layer that limits how often tokens can be transferred, adding extra protection. They are set up to either "lock" or "burn" tokens on the source chain and then "unlock" or "mint" them on the destination chain. This results in four possible combinations: Burn and Mint, Lock and Mint, Burn and Unlock, and Lock and Unlock.
Token bridging is the process of transferring tokens from one blockchain to another, enabling interoperability and seamless interaction across multiple networks. Since blockchains operate independently and cannot directly communicate with one another, token bridging serves as a mechanism to "move" tokens between them.
UTS simplifies token bridging by integrating with the Entangle Bridge Protocol. This system automates the mint and burn or lock and mint processes, enabling developers to focus on token functionality while ensuring secure and efficient cross-chain transfers. With UTS, bridging is decentralized, trustless, and designed to minimize the complexity typically associated with multi-chain operations. UTS offers two modes, expert mode, and simple mode.
When transferring tokens there are several different models users can use to handle tokens on source and destination chains. In this section each type of model is explained.
The burn and mint model maintains token supply consistency by burning tokens on the source chain and minting an equivalent amount on the destination chain. This preserves total supply during cross-chain transfers and supports custom tokenomics.
In the lock and mint model, tokens are locked on the issuing blockchain, and fully collateralized wrapped tokens are minted on the destination blockchain. These wrapped tokens, with burn-and-mint functionality, enable cross-chain transfers and extended functionality.
The burn and unlock model returns tokens to their issuing blockchain by burning them on the non-issuing source chain and releasing an equivalent amount on the issuing destination chain.
Unlock scheme requires to have enough liquidity on destination side to perform bridge operation, make sure to check this before bridging.
The lock-and-unlock model enables cross-chain transfers for non-upgradable tokens by locking tokens on the source chain and releasing an equivalent amount on the destination chain. This method maintains token integrity and requires careful liquidity management to ensure balance across chains.
Unlock scheme requires to have enough liquidity on destination side to perform bridge operation, make sure to check this before bridging.
