How We Achieve Cross-chain Capability

To enable seamless cross-chain lending and borrowing in Caér, we utilize a structured process that ensures security and efficiency. Our system leverages the Application-Specific Sequencer (ASS), Espresso confirmations, and solvers to facilitate interactions across different chains. ASS plays a crucial role in verifying data across chains, ensuring valid transactions, and maintaining system integrity.

Below is an overview of our cross-chain lending mechanism:

1. User Collateral Deposit

The user deposits 1 WETH as collateral on Chain A.

2. User Loan Request

The user initiates a request to borrow 100 USDC on Chain B.

3. ASS Verification

• ASS verifies the deposit on Chain A to ensure the user has sufficient collateral.

• The ASS cross-checks the deposit status before approving the loan request.

4. Espresso Confirmation & ASS Signature Generation

• The sequencer leverages Espresso confirmations to ensure transaction finality within sub-15 seconds.

• Once confirmed, ASS generates a signature, verifying that the deposit exists and the loan request is valid.

5. Transaction Processing

The generated ASS signature is embedded into the transaction, enabling secure execution on Chain B.

6. Solver Loan Execution

The solver, upon receiving the verified ASS signature, releases 100 USDC to the user's address on Chain B.

By integrating ASS, Caér ensures trustless execution, fast transaction finality, and enhanced cross-chain security, making lending and borrowing seamless and reliable.

Note:

For the purposes of this hackathon, we are using mock tokens to simulate transactions and interactions within the platform. Additionally, the platform is operating on a testnet environment.