Multi-Blockchain Token Rebalancing for Lower-Fee Transfers
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Solution Overview
Problem
Conventional methods for maintaining token balances across multiple blockchains involve reactive minting and burning, leading to time-consuming and opaque transactions with high fees, especially when one or more transactions fail.
Innovation Solution
A method and system for determining a target ratio across multiple blockchains, periodically checking token balances, and executing rebalancing transactions to maintain token distribution in accordance with the target ratio, thereby reducing the need for reactive minting and burning.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If reactive minting and burning is used to maintain token balances across multiple blockchains, then token distribution can be adjusted to meet user demands, but transaction time increases and transaction fees increase
Solution Approach 1:
The system proactively monitors token balances across multiple blockchains and automatically executes minting or burning transactions before the token distribution deviates significantly from the target ratio. This preliminary action prevents the need for reactive adjustments, reducing both transaction time and fees while maintaining adaptability to user demands.
Solution Approach 2:
The system continuously monitors the actual token distribution across blockchains and compares it against the target ratio, using this feedback to trigger automatic rebalancing transactions only when necessary. This feedback mechanism ensures adaptability while minimizing unnecessary transactions and associated fees.
2Adaptability or versatility
If reactive minting and burning is used to maintain token balances, then token distribution can be adjusted, but the process becomes opaque to users
Solution Approach 1:
The system implements comprehensive monitoring and logging of token balances and rebalancing transactions across all blockchains. This feedback mechanism provides transparent visibility into the token distribution state and automatic adjustments, allowing users to track and verify the system's actions while maintaining adaptability.
3Adaptability or versatility
If multiple reactive transactions are executed to onboard legacy currency, then token distribution can be maintained, but transaction fees increase
Solution Approach 1:
The system proactively manages token distribution by pre-calculating and executing rebalancing transactions before significant deviations occur, consolidating multiple small adjustments into fewer, more efficient transactions. This reduces the total number of transactions required and lowers associated fees while maintaining adaptability.
Solution Approach 2:
The system combines multiple rebalancing operations into single consolidated transactions where possible, merging adjacent minting or burning operations across different blockchains to reduce the total transaction count and associated fees while achieving the same token distribution maintenance goal.
4Ease of operation
If reactive transactions are executed on user-selected blockchains, then user choices are respected, but transaction failures may occur and compound the problem
Solution Approach 1:
The system continuously monitors the status and success of transactions across all blockchains, using this feedback to detect failures and trigger compensating transactions. This allows the system to maintain reliability by correcting failed transactions while still respecting user-selected blockchains for the original operations.
Solution Approach 2:
The system monitors transaction queues and blockchain conditions to identify potential failure risks before transactions are executed. By detecting unfavorable conditions in advance, the system can delay or adjust transactions to avoid failures, thereby improving reliability while maintaining user selection freedom.
Data Source
AI summary
Certain aspects of the present disclosure provide techniques for multi-blockchain token rebalancing. According to certain embodiments, a target ratio defining a first quantitative relationship between an amount of a token present is determined for each of a plurality of blockchains. A current amount of the token is received for a first blockchain, and in some embodiments, a first ratio is generated for the token present on each of the plurality of blockchains, based on the current amount. The current amount is compared to the target ratio to generate a ratio difference. Based on the ratio difference, a rebalancing transaction is executed on the first blockchain to bring the amount of the first token closer to the target ratio for the first blockchain.