Across Protocol

Across Protocol (ACX) is a decentralized cross-chain bridge designed to facilitate secure and efficient transfers of tokens between different blockchain networks. The project was founded by a group of seasoned blockchain developers and enthusiasts who recognized the need for a secure and effective cross-chain bridge in the developing DeFi landscape.

The team collaborated with UMA and Snapshot to develop an optimistic governance tool, leveraging UMA’s optimistic oracle technology to ensure the security and integrity of the platform. The ACX token was introduced to govern the decisions affecting the function of Across Protocol and manage the DAO’s treasury, enabling decentralized ownership and control of the platform.

The project has gained significant traction, securing strategic partnerships with key players in the DeFi industry and raising funds to accelerate its growth. The ACX token was airdropped based on criteria measuring early support, including strategic community support and liquidity provision. Additionally, the Risk Labs foundation worked alongside the Across DAO to iterate on the bridge’s design and drive adoption.

Across Protocol offers a reward-locking program and referral rewards for users, providing additional ways to earn ACX tokens and contribute to the protocol’s growth. The referral program’s duration depends on the ACX price and the volume of referral transactions, while the reward locking program incentivizes liquidity providers with ACX emissions.

The governance model empowers the community to make decisions directly affecting the platform’s future. By using the ACX token, holders can participate in the ideation, discussion, proposal, feedback, voting, and execution phases of the governance process, ensuring that the protocol remains in line with the interests of its users.

Across Protocol has established strategic partnerships with key players in the DeFi industry, further expanding its reach and functionality. As the platform continues to grow, additional partnerships and integrations will likely be established, further increasing the utility and adoption of Across Protocol.

Across Protocol (ACX) is a decentralized platform designed to facilitate seamless and low-cost transfers of tokens between different blockchain networks. It is optimized for capital efficiency with a single liquidity pool, a competitive relayer landscape, and a no-slippage fee model. Here's how it works:

1. Canonical Bridges: Across relies on canonical bridges, which are considered "official" and have the same level of security as the project that deploys them. These bridges are slow to ensure maximum security, waiting until a transaction is considered irreversible before making a transfer.

2. Relayers and Risk Management: To overcome the time constraint of canonical bridges, Across transfers value directly to the user from the destination chain. The relayer is then repaid later through the canonical bridge. This means the relayer takes the risk that the user's initial transaction may be reversible.

3. UMA Integration: Across uses UMA (Universal Market Access) to reimburse relayers. This integration ensures that relayers are incentivized to participate in the system. However, this also means that if more than 51% of UMA tokens are controlled, it could potentially be used to attack Across.

4. Intents: Across is built around the concept of "intents," which are a new type of transaction that replaces explicit execution steps with user outcomes. This allows relayers to compete to provide the optimal execution path for the user, making the process more efficient and user-centric.

1. Cross-Chain Transactions: Across enables users to transfer tokens between different blockchain networks, including Ethereum, Layer 2s, and Roll-Ups, in a secure and efficient manner.

2. Liquidity Pool: The protocol operates on a single liquidity pool concept, which helps reduce costs and increase yields for liquidity providers.

3. Governance: The ACX token is the governance token for the Across protocol. It allows holders to participate in decision-making processes and manage the DAO's treasury.

4. Incentives: ACX tokens are used to incentivize liquidity providers and those participating in the Across Referral Link program.

1. Optimistic Oracle: Across leverages UMA's optimistic oracle technology to ensure the security and integrity of the platform. This technology allows for accurate transactions and dispute resolution.

2. Capital Efficiency: The protocol is designed to optimize capital efficiency through its single liquidity pool, competitive relayer landscape, and no-slippage fee model.

3. Modular Interoperability: The system is built with a modular architecture, consisting of a request for quote mechanism, a network of competitive relayers, and a settlement layer. This modular design enables seamless and efficient cross-chain transactions.

Across Protocol is a decentralized platform that enables fast, secure, and low-cost transfers of tokens between different blockchain networks. It achieves this through its innovative use of intents, canonical bridges, and UMA integration, making it an attractive solution for cross-chain transactions in the DeFi landscape.

The Across Protocol (ACX) token has several strengths:

• Governance: The ACX token is an ERC-20 token that allows for decentralized ownership and control of the protocol, ensuring decision-making power resides in the hands of token holders.
• Capital Efficiency: The protocol optimizes capital deployment and minimizes idle funds, reducing costs and enhancing overall liquidity, making it an attractive option for users seeking efficient and cost-effective cross-chain transactions.
• Innovative Fee Model: Across employs an interest rate fee model based on the utilization of assets in its liquidity pool, leading to more consistent pricing.
• Liquidity and Reward Mechanisms: Liquidity providers receive LP tokens, earning fees from transfers. Users can earn rewards through referral programs and a reward-locking program encouraging long-term participation.
• Security: The safety of Across is underpinned by its robust, optimistic design, which ensures that even in scenarios with high participation rates, the system can quickly and effectively identify and rectify false claims with the input of just one honest participant.
• Speed: Besides its current speed of under 2 minutes per bridging transaction, Across is actively developing capabilities for next-block bridging, aiming to enhance cross-chain transactions’ speed and efficiency.
• Growth: The Across ecosystem is not just growing in size but also in its scope of opportunities, allowing individuals to actively shape the future of decentralized finance (DeFi) and cross-chain interoperability.

Across Protocol (ACX) faces several financial risks that investors should be aware of:

1. Risk of Smashing the Secondary Market: The protocol has a large number of community airdrop chips, which could lead to a significant influx of tokens into the market, potentially causing a price drop.

2. Tokenomics and Airdrop Allocation: The allocation of tokens for airdrops, strategic partnerships, and fund-raising could impact the token's value and liquidity. For instance, the large allocation for the DAO treasury reserve (525 million tokens) might influence market dynamics.

3. Funding and Investor Risks: The protocol has raised $10 million in funding, with a significant portion of tokens locked until June 30, 2025. This could lead to market volatility when these tokens are unlocked and potentially sold.

4. Risk of 51% Attack on UMA: Since Across relies on UMA for reimbursement, a 51% attack on UMA could theoretically compromise the security of Across. However, the relatively low value locked in its liquidity pools ($150 million) makes such an attack less profitable.

5. Market Manipulation: InvestorsObserver has given Across Protocol a medium Risk/Reward Score, indicating that the token can be manipulated to some extent. This means that large investors or market actors could influence the token's price.

6. Limited Blockchain Compatibility: Across currently only supports blockchains compatible with the Ethereum ecosystem, limiting its scope and potentially affecting its growth and adoption.

These financial risks highlight the importance of thorough research and risk assessment before investing in Across Protocol (ACX).

• Hart Lambur: Co-Founder of Across Protocol, involved in discussing the project's fundamentals, business model, and future plans.