SetuSwap

Problem Statement

Setu Swap: Cross-Chain Bridge Between Ethereum and Stellar 🌉Setu Swap represents a groundbreaking advancement in cross-chain technology, seamlessly connecting the Ethereum and Stellar blockchain ecosystems through an innovative atomic swap protocol. Built on the foundation of 1inch's Fusion technology, Setu Swap introduces a new paradigm in decentralized token exchanges across heterogeneous blockchain networks.Technical Innovation 🔧At its core, Setu Swap leverages advanced cryptographic techniques and smart contract architecture to enable trustless, atomic cross-chain swaps. The protocol utilizes Hash Time-Locked Contracts (HTLCs) in conjunction with 1inch's Fusion technology to ensure:Atomic execution of cross-chain transactionsProtection against MEV (Miner Extractable Value)Resistance to front-running and sandwich attacksOptimal swap routing and executionMinimal slippage and maximum efficiencyArchitecture Overview 🏗️The protocol operates through a sophisticated multi-layer architecture:Order Creation LayerCryptographic order signingHash-locked commitment schemesAutomated validity checksDynamic pricing mechanismsDiscovery LayerDecentralized order book systemReal-time order matchingEfficient order filtering and sortingCross-chain state verificationExecution LayerAtomic swap coordinationCross-chain transaction synchronizationAutomatic order settlementFailure recovery mechanismsKey Differentiators 🌟Setu Swap stands out in the cross-chain landscape through several unique features:Enhanced Security: Utilizes 1inch's battle-tested Fusion protocol combined with custom security measuresTrue Atomicity: Guarantees either complete execution or complete rollback of cross-chain swapsOptimal Execution: Leverages 1inch's advanced routing algorithms for best-in-class swap ratesUser-Centric Design: Intuitive CLI interface making cross-chain swaps accessible to allNetwork Synergy: Bridges the efficiency of Ethereum with the speed of StellarFuture-Proof Architecture: Designed for extensibility to support additional chains and tokensMarket Impact 📊Setu Swap addresses critical challenges in the current DeFi landscape:Cross-Chain LiquidityEnables seamless liquidity flow between Ethereum and Stellar ecosystemsReduces fragmentation in the DeFi spaceCreates new arbitrage opportunitiesEnhances market efficiencyRisk MitigationEliminates counterparty risk through atomic executionPrevents front-running through MEV protectionEnsures price consistency across chainsProtects users from common cross-chain vulnerabilitiesMarket AccessibilitySimplifies cross-chain interactionsReduces barriers to entryEnables new trading strategiesPromotes market participationTechnical Implementation 💻The protocol implements several cutting-edge technologies:Smart Contract LayerEVM-compatible contracts for EthereumCustom implementations for StellarSecure hash-locking mechanismsEfficient state managementIntegration Layer1inch Fusion protocol integrationCross-chain oracle implementationsReal-time price feedsNetwork state synchronizationApplication LayerCLI-based interfaceOrder management systemReal-time monitoringAutomated error handlingFuture Roadmap 🛣️Setu Swap is positioned for continuous evolution:Multi-chain expansion beyond Ethereum and StellarAdvanced trading features and order typesGraphical user interface developmentMobile application developmentEnhanced analytics and reportingCommunity governance implementationProtocol optimization and scalingImpact on DeFi Ecosystem 🌐Setu Swap contributes to the DeFi ecosystem by:Bridging traditionally isolated blockchain networksEnabling new forms of cross-chain arbitrageImproving overall market efficiencyReducing friction in cross-chain transactionsPromoting innovation in DeFi applicationsCreating opportunities for market makersEnhancing liquidity across networksThis revolutionary protocol represents a significant step forward in blockchain interoperability, setting new standards for cross-chain exchanges while maintaining the highest levels of security, efficiency, and user experience.

Solution

I built this project using Stellar Soroban, Solidity and PrismaDb. I used stellar contracts from open-zeppelin. They are pieced together using simple js. I used Stellar Soroban and 1inch apis for prices and rpc url. As I don't have much time to implement UI, I decided to go with CLI