# Crosspoly Litepaper

## 1. Introduction

### 1.1 Summary

Crosspoly is a heterogeneous cross-chain aggregation protocol, which is based on multi-computing distributed key management. It provides transaction traffic for each DEX on public chain, finds the best price for DeFi users and automatically places orders. Crosspoly is committed to providing a more trustworthy, safer and more efficient flow and transaction of heterogeneous assets. The mission of CrossPoly is to provide consumers access to cryptocurrency-based, financial services, allowing them to exchange, or ‘swap’, various digital assets within their Wallet. The benefits of this design can be attributed to the high level of safety and security that is inherent to the decentralized model of asset storage and protection. The platform also provides ‘cross-chain’ swaps to conduct exchange settlements without regard to the limitations of a typical isolated Blockchain network.  The term ‘cross-chain’ derives itself from the fact that the exchange is executed after traveling across two or more separate blockchain networks. With a cross-chain swap, the initial asset and the target asset are deployed on two isolated Blockchains that otherwise are non-communicative. In light of the advanced development of decentralized financial protocols (DeFi) and the increasingly mature markets for lending, exchange, derivatives, etc., The CrossPoly protocol, in cooperation with its associated decentralized wallet software, provides a one-stop aggregation & exchange platform for consumers and offers developers access to an open, distributed, limitless, and secure — trading environment.



### **1.2 Background-**&#x54;he Great Age of Crosschain Aggregation

From the 15th century to the 17th century, countless European fleets appeared on the oceans all over the world, looking for new trade routes and trading partners to develop new capitalism in Europe.

In this era, countless distant countries began to communicate.

In this era, more than 4/5 of human territory has been discovered.

In this era, countless sailing heroes have emerged, such as Columbus, Da Gama, Magellan, etc.

In this era, countless commodities are traded and circulated on airlines.

In this era, the world begins to merge into one.

In 2021, three centuries have passed since the era of the Age of Discovery, but the belief of exploring and pursuing embodied in this era, the spirit of brave and challenging the sea, and the creed of seeking free trade still exists!

The original intention of the blockchain is to inherit the spirit of freedom and borderless navigation. However, with the continuous development of technology and the emergence of projects, countless public chains have been formed, which divide the free blockchain world into pieces like countless new continents do that in our real world.

Closed, blocked. The blockchain world is precarious. A new great route to communicate with the world is needed.

What is the essence of blockchain? Free.

What is needed for the transaction? Free.

What is the great route of this world? CrossPoly.

CrossPoly, a heterogeneous cross-chain aggregator based on the multi-computing distributed key, links all closed blockchain networks. There is no gap between two chains. There is no hinderance to transactions. Crosspoly, brings the blockchain back to its essence. Crosspoly, returns the great route to this world.

### 1.3 Mission

Since 2020, the secondary market of DeFi led by LINK has continued to soar, which has attracted people's attention on this new field. Subsequently, the related projects in this field have shown a blowout surge. DeFi innovation has brought many practical applications to the industry and has promoted the development of open finance. However, network congestion and poor scalability have caused unprecedentedly high network transaction fees. This problem is urgent and caused significant financial detriment for many.&#x20;

At present, public chain smart contracts represented by ETH are constantly improving the development of DeFi, but ETH has not formed a unified public chain situation. Meantime, TRX and polkadot and others have contended. As the demand for cross-chain transaction scenarios continues to increase, cross-chain transactions have also become one of the urgent problems to be solved in the blockchain industry.

In order to provide a more efficient and simple trading method, we compare different exchanges on the leading chains to find the most cost-effective rates for our users. Moreover, we implement a cross-chain protocol to connect different blockchain networks and allow users to freely exchange assets without regard to network isolation. &#x20;

Crosspoly is a heterogeneous cross-chain aggregation protocol, which is based on multi-computing distributed key management. It provides transaction traffic for each DEX on public chain, finds the best price for DeFi users and automatically places orders. Crosspoly is committed to providing a more trustworthy, safer and more efficient flow and transaction of heterogeneous assets.

## 2. Functional Modules

### **2.1 Layer Structure**

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-Mdul6-oxP5Eqk85mFWI%2Fimage.png?alt=media\&token=81c98afe-3549-4e62-a881-c79bbe7fd4bf)

Crosspoly uses a four-layer structure to ensure the integrity and symmetry of the information in the liquid market. As a result, the consumer has a safe and efficient trading environment.

1. Application Layer: Provide developers with a complete service API to integrate into different applications, and providing users with a convenient and user-friendly operating platform.
2. Polymer Layer: Based on the private key signature authorization, the transaction settlement is completed through the smart contract. Additionally,  cross-chain protocols and cross-chain pools will help users complete cross-chain asset exchanges and settlements.
3. Management layer: The aggregation of different liquidity sources through AMPC,cross pool,notary election, allows the platform to identify and recommend the best exchange quote for users.
4. Network Layer: As the basis of the crosspoly cross-chain protocol, we will aggregate high-quality public chains and ecological chain systems in the market. This includes Ethereum, Binance Smart Chain, Neo, Huobi ECO Chain, and creditworthy layer 2  projects, to provide cross-chain trading.

### **2.2 System Design**

The main functional modules of **Crosspoly** include the exchange aggregators (Crosspoly Aggregator) and cross-chain pool (Crosspoly Hub). Crosspoly Aggregators are deployed on mainstream blockchains and help users find the most effective trading rates and routes in the corresponding network. Crosspoly Hub provides users with cross-chain transaction services based on PolyNetwork and supports users to add liquidity by a single token from different chains to earn income from cross-chain transaction fees and CP rewards.



### 2.3 **Crosspoly** Aggregator

System roles are divided into the following categories:

1. Users: Users connect to crosspoly for transacting with their crypto wallet.
2. Crosspoly Relayer: The agent of the user and the contract on the chain. Depending on the different users’ needs, crosspoly relayer can find the best exchange rate through crosspoly.
3. Swap: As the core exchange mechanism of the system, it receives users’ requests from the relayer and achieves liquidity settlement by smart contracts.
4. Aggregator: Aggregate liquidity sources across blockchains and determine the best trading rates and routes for users.&#x20;
5. Cross-chain Pool: The cross-chain asset transaction pool built based on the PolyNetwork protocol realizes the free exchange of assets across chains.
6. Liquidity Providers: Mainly including the following liquidity sources:

* Automated market makers of on-chain algorithms from different DEXs.
* Lp market maker who provides liquidity for Cross-chain Pool.

### 2.4 Crosspoly Hub

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-MdoOuDWp_TNY3uAH-je%2F-MdodrYaMbwEZTOmArul%2F%E5%BE%AE%E4%BF%A1%E5%9B%BE%E7%89%87_20210705111234.jpg?alt=media\&token=c734ae19-d063-48fd-bd13-deeaf4db5553)

Crosspoly Hub is composed of a cross-chain asset pool such as stablecoin pool and cross-chain protocol based on Poly Network. With the StableSwap invariant , the performance of the algorithm was evaluated and optimized assuming providing liquidity for stablecoin. This sort of automated liquidity provider for stablecoin offers very low price slippage and extremely reduces the impermanent loss. On the implementation side, traders can exchange mainstream assets across blockchains simply; Liquidity providers can deposit single or multiple assets to the cross-chain pool and stake the LP shares to earn Crosspoly rewards. The advantage of this design is allowing users to exchange cross-chain assets without asset deposit and withdrawal compared to the traditional Hub mechanism, which greatly reduces the threshold for user operations/transactions.

## 3. Aggregation Protocol

The Aggregation Protocol is a smart contract built on Binance Smart Chain (BSC),Avalanche, Matic Network, Ethereum (ETH), Polkadot and other chains.

The aggregation protocol searches for the best depth of DEX on the major public chains for sliding point protection, and judges the trading pair with the highest price when selling and the best price when buying, and automatically places an order.

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MduwKFhb6rX-WiLN7fi%2Fimage.png?alt=media\&token=977acb02-a84e-404d-af22-da851a483163)

## 4. Cross-Chain Encapsulation Of Asset Liquidity Mining

Crosspool, cross-chain encapsulation of asset liquidity mining, is a solution to the shortage of asset liquidity between cross-chains. The cross-chain aggregation protocol combines platform’s cross-chain encapsulated assets and on-chain assets at a 1:1 ratio for LP mining. Through mining rewards, the encapsulated asset conversion and smart contract interaction of cross-chain encapsulated and mapped assets on different public chains can be realized.

For example: If a user wants to convert BTC/XRP/FIL to BTC/XRP/FIL on the ETH chain, he only needs to transfer a BTC/XRP/FIL into the Crosspool, and the swap pool triggers the contract to generate a cross-chain encapsulated assets in ETH format, like eBTC/eXRP/eFIL. And in this case, the eBTC/eXRP/eFIL and wBTC/wXRP/wFIL (ETH chain mapping token) can be combined together to do the LP mining, so as to realize the liquidity of cross-chain encapsulated assets.

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-Mduwhkd6OzsSH6IC9Cs%2Fimage.png?alt=media\&token=9822a76d-5863-41f9-974c-699b2e1e35a4)

## 5. SPMC

Distributed private key control is a sharing technology based on multi-party calculation and threshold key in cryptography. Through private key generation and control technology, cryptocurrency assets are mapped to the chain based on the built-in asset template of blockchain protocol. New smart contracts are deployed according to cross chain transaction information to create new cryptocurrency assets.

SPMC divides the private key in the blockchain into 32 segments, from Sk1 to SK32, and distributes it to 32 private key segment managers. Each manager only has one private key segment. Only after the allocation of 32 private keys is completed, can the complete private key be recovered and the assets on the chain be operated. Each private key segment is backed up to 31 notaries. When the manager is not online, the notary will provide the missing segments. All managers and notaries are elected on the chain every 10 minutes. The election method is based on Cptoken on the chain.

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-Mdux4N5vcKfzYZNlxxU%2Fimage.png?alt=media\&token=070cb1c7-1e8d-44b2-ba36-ded76dc77ef5)

## **6. Tokenomics**

**Crosspoly** Token (CP) is an application token issued by crosspoly. It is an important mediator to promote the development of the crosspoly network. Based on the economic model of crosspoly, all participants and developers are encouraged to invest in the maintenance of the overall ecological network through the community governance of tokens.

### 6.1 Token Distribution

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MdulrJ_XmtmSophhmsw%2Fimage.png?alt=media\&token=537bdc13-1ad5-4c80-938f-eaac8176dd7f)

### **6.2 Economic Model**

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-MdoOuDWp_TNY3uAH-je%2F-MdpNPxruXKmsr97XkAZ%2F%E5%BE%AE%E4%BF%A1%E5%9B%BE%E7%89%87_20210705143554.jpg?alt=media\&token=5d28d109-386f-42da-91ea-d373cf9b3b15)

#### In the economic model of C**rosspoly**, there are four ways to earn CP.&#x20;

1. To receive the airdrops of CP through early participation in product testing and community promotion.&#x20;
2. To get CP through CPSwap transaction.&#x20;
3. To obtain CP rewards by participating in liquidity in Crosspool.&#x20;
4. To run for as the private key manager and stake CP to obtain eToken. eToken is the cryptocurrency corresponding to cross-chain assets such as BTC and FIL.

#### There are two main uses for the unlocked CP:&#x20;

1. Private key manager's rights and interests: The amount of CP held within 32 people can obtain all the exchange settlement income of cross-chain transactions.&#x20;
2. Community governance: Users can participate in governance by staking CP to initiate a community proposals and participate in voting.

#### Built Into **the T**hird-party Wallets

The Crosspoly protocol is built into the third-party wallets, and orders can be placed directly from the wallet. This interactive diagram shows the order page.

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MduswCnz93CRF729grW%2Fimage.png?alt=media\&token=fa90dc2f-25c6-43c9-ae5e-a76d5bdeae4c)

#### **A B**uilt-in K Line

In order to facilitate users to draw lines and do professional analysis, Crosspoly has developed a built-in K line, which greatly improves the user experience.

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MdutKD-Af1_3Lv8Gqiv%2Fimage.png?alt=media\&token=d9613130-ec0a-4a46-b2c1-af7bc59df477)

In addition, Crosspoly displays the LP depth in graphics and text, and users can visually see the LP data.

### 6.3 LP Unclocked Rules

**Rule 1:** 10% of the CP will be unlocked immediately without limitation. 90% will be unlocked by adding LP, that is, the minimum portfolio. The liquidity value of CP/USDC is at least 20% of your total assets (CP), and get locked for 100 days. In this case, you can unlock 0.5% of the locked CP every day and obtain CP/USDC liquidity mining award at the same time.

**For example:** if an investor invested 1000 CP, 100 CP will be unlocked immediately, and the remaining 900 CP will be unlocked by locking LP. The value of the LP entering the locked mining pool is “100 CP: 100 CP equivalent USDC”. The lock-up period is 200 days, during which you can get the CP:USDC lock-up pool liquidity mining rewards. In addition, 4.5 CP will be unlocked every day.

**Rule 2:** When the price exceeds 20 USDT, the contract will be unlocked.

## **7.** Advantages and Features

#### Advantages of Automated Aggregation of Crosspoly

It is unnecessary to know where the token is traded. Crosspoly automatically finds the trading pair of a certain token for users. There is no need for users to judge the depth of the trading pair. Crossply analyzes the contract address data for users to automatically analyze the optimal depth and price. In decentralized products, a centralized experience is realized. The interaction mode of K-line and technical indicator line are all the same as the centralized ones.

#### Advantages of Cross-chain

Each public chain has its own cross-chain platform, and Crosspoly implements a unified cross-chain approach. Through the distributed private key control scheme, a fast and efficient cross-chain scheme is realized, the block speed is equivalent to the cross-chain speed, and there is almost no loss of time. The data of the cross-chain pool realizes distributed management.

#### Advantages Comparied with Others

![Chart 1](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MdupMOA1y9hwo89X9AK%2Fimage.png?alt=media\&token=a78af332-7b62-450c-bfad-e7cdb044c07e)

![Chart 2](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-MdupYlhmqi8_S3DvXVo%2Fimage.png?alt=media\&token=43f772d4-8371-453f-bb13-1b4b2625d462)

## **8. Roadmap**

* **2021 March**

1.Crossspain, the Spanish era version of CrossPoly, will be launched.\
2.The cross-chain aggregation version is officially open for internal testing.

* **2021 July**

1.Crossmed, the Mediterranean era version of CrossPoly, will be launched.&#x20;

2.The cross-chain protocol for homogeneous aggregation will be officially launched for public testing, including Uniswap, sushiswap, mdex and pancake.

* **2021 August**

1.CrossPoly Diagonal, a aggregation trading competition, will be officially launched. Come to participate in CrossPoly Aggregation Cross-chain Education and win millions of CP airdrops!

2\. Crosseur, the European era version of CrossPoly, will be launched. Private key management mechanism and heterogeneous aggregation cross-chain will be officially launched.

3.Crosssea, the Age of Discovery version of CrossPoly will be launched. Support all mainstream public chain aggregation transactions in the entire network, and open chain node application channels.

* **2021 September**

1\. Crossalt, the Atlantic era version of CrossPoly will be launched. Cross Vault, a cross-chain aggregation vault, will be officially launched, fully opening the construction of CrossPoly's liquidity ecosystem.

* **2021 October**

1\. Caribbean, the Caribbean era version of CrossPoly will be launched. NFT and other multi-chain derivatives aggregated transactions will be officially launched, creating the first NFT cross-chain ecological platform.

## 9. Market Analysis

![](https://512910346-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdZwKUzhB9gGNdw9JS7%2F-Mdu2eqqhn4AhkxjB3yI%2F-Mduxej2NSxzheXvreDD%2Fimage.png?alt=media\&token=36e8eb09-2104-4885-9d7e-afa0ff8101a8)

From data analysis The annual fee income of the three centralized exchanges was 108.5 billion. Due to the short establishment time of decentralized DEX, it can be estimated that the revenue of 12.4 billion from the data. The exchange data of the smart contract on public chain accounted for 11%, and the non-smart-contract public chain data accounted for 89%. The market for cross-chain aggregators still has 8-9 times the space to be developed.

## **10. Disclaimer**

This prefatory paper is for general information based on Crosspoly’s development proposal and experience. It should not be considered as professional financial investment advice and used in the evaluation of making any investment decision. This paper reflects the current opinions of the authors and is not made on behalf of Paradigm or its affiliates. New updates and changes will not be announced. Please follow the official website for the latest product updates.

