Cross-chain bridges are mechanisms that allow tokens to be exchanged from their native blockchain to tokens on another blockchain. This allows for more flexible use of tokens, such as using bitcoin in a programmable network (e.g. decentralized lending) or exchanging own assets for additional packaged tokens. If you want to get more information on cross-chain liquidity, you can browse the web.
Bridges offer many advantages such as reduced technical complexity of stock listings or new uses outside of their respective networks, Loans, and margins (among many other financial uses) through synthetic assets. There are many technical ways to implement such a bridge, from the fully centralized supply (like the Binance Bridge) to decentralized solutions like Harmony's Horizon.
What are the challenges for the Harmoni cross-circuit unit?
Currently, the focus of the Harmony cross-chain aggregator is developing APIs for partner presence. These interfaces can, in turn, be divided into two distinct main groups:
The first should address the aggregation of bridge assets such as ethBUSD and bscBUSD by providing the infrastructure to aggregate the liquidity pools for these related assets.
Furthermore, Harmony's cross-chain strategy could significantly benefit from implementing a pricing mechanism that can identify the best pricing strategy for cross-chain execution.
Therefore, a general solution is to provide liquidity for x1USDT using pools of other tokens x2USDT and x3USDT, this would require an infrastructure that either maintain multiple pools, one for each USD asset, or a single pool that can handle transactions among multiple tokens.