Scenario
In this scenario, we have two blockchain networks, Polygon and Elysium, each with its native cryptocurrency PYR. The DeFi project "Elysium Bridge" aims to bridge these two networks, enabling users to seamlessly move their PYR tokens between the networks and utilize the unique features of each network.
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Step 1: Bridging: Elysium Bridge introduces a cutting-edge bridge smart contract that connects Polygon and Elysium. Users can send their PYR tokens from Polygon to the bridge contract. The bridge contract registers the request and begins the cross-chain transfer process.
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Step 2: Locking: Once a user sends PYR tokens to the bridge contract on Polygon, the bridge contract triggers a locking mechanism. This temporarily immobilizes the PYR tokens on Polygon, ensuring their supply is maintained during the cross-chain transfer.
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Step 3: Minting on Elysium: The bridge contract on Elysium monitors the cross-chain transactions and verifies the locked PYR tokens. Upon validation, the bridge contract on Elysium mints an equivalent amount of PYR tokens on the Elysium network. These newly minted PYR tokens are then deposited into the user's Elysium wallet.
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Step 4: Burning on Polygon: As users take advantage of Elysium's features using the minted PYR tokens, they might decide to move their assets back to Polygon. When a user on Elysium initiates a transfer back to Polygon, the same amount of PYR tokens are burned on the Elysium network.
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Step 5: Release on Polygon: Upon receiving the burn confirmation from Elysium, the bridge contract on Polygon triggers a release mechanism. This unlocks an equivalent amount of PYR tokens on Polygon, allowing users to access their tokens again.
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Benefits of Bridging and Minting/Burning: Elysium Bridge brings the best of both worlds to users. They can leverage Polygon's fast and affordable transactions with lock and release capabilities, allowing them to explore various DeFi opportunities. Simultaneously, they can tap into Elysium's minting and burning features, participating in Elysium's ecosystem and enjoying its unique benefits.
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Conclusion: The Elysium Bridge project effectively bridges Polygon and Elysium networks through a seamless combination of locking and releasing on Polygon and minting and burning on Elysium. This cross-chain interaction enhances the utility of PYR tokens and opens up new avenues for users to engage in decentralized finance activities on both networks.