Built-In Liquidity

Chains built with the Canopy framework come with Built-In Liquidity as a core feature in the form of trustless token exchanges (token swaps).

👉 Thanks to Canopy's One-Way Interoperability cross-chain functionality may be built without the counter-asset chain's permission.

Enabling:

• Trustless token exchanges between Root & Nested chains.

• Trustless token exchanges between External chains (Ethereum, Solana, Bitcoin) and Canopy chains.

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This functionality increases ecosystem liquidity with limitless expansion and connection — creating cross-pollination of assets, users, and tooling between the diverse landscape of Web3.

Since token exchanges through Canopy are built via permissionless interoperability, external chains can use and benefit from the token swaps without actually having to do any development work!

Committees are leveraged to create on-ramps and off-ramps to popular stables like USDC and USDT

➜ And due to the composable architecture of Canopy interoperability features, pre-built liquidity paths may be re-used across multiple chains:

Canopy Chain A <-> BTC Plugin
Canopy Chain B <-> ETH Plugin
ETH Plugin <-> Canopy Chain C <-> BTC Plugin

↪ meaning any new chain may use a pre-built token exchange plugin for instant liquidity or DeFI functionality.

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Beyond just functionality, each token swap generates fees, contributing to a sustainable economic model for Canopy chains.

↑ These fees ↑ serve as a continuous revenue stream, ensuring that chains benefit financially not only from their core utility but also from ongoing network activity.

You can learn more about token swaps here !