How to Earn on Your Crypto Assets with no Impermanent Loss
Umbria Network’s Bridge Liquidity Protocol Explained
The Umbria Narni Bridge uses a novel liquidity-provision protocol to speed up and lower the cost of bridging cryptocurrency assets across chains facilitated by crowd-sourced liquidity. Those staking assets earn fee-based rewards for their liquidity provision.
Superior cross-chain bridging AND rewards for liquidity providers
Umbria Network’s Narni bridge represents a significant advancement in cross-chain asset migration and simultaneously provides opportunities for liquidity providers to earn fees on their crypto assets.
By leveraging liquidity pools on multiple networks, the Narni Bridge overcomes the challenges of cost and speed inherent in traditional cross-chain transactions
making it an essential component in the evolving landscape of decentralised finance (DeFi).
The Narni Bridge functions as a conduit for seamless asset transfer between different blockchain networks. It operates on the principle of holding liquidity on both the originating and target networks, effectively allowing assets to be received on one network and disbursed on another to the same wallet address. This innovative approach circumvents the limitations imposed by network validators, ensuring the efficient and cost-effective movement of assets across disparate blockchain ecosystems.
Rewarding liquidity providers
One of the key features of the Narni Bridge is its ability to incentivise liquidity providers (LPs) through earning fees. Users can contribute liquidity to the bridge, thereby participating in the facilitation of cross-chain transactions, whilst earning fees on the assets they have staked.
Unlike many traditional liquidity provision models where users have to provide liquidity for multiple assets (liquidity pairs), the Narni Bridge simplifies the process by allowing users to stake a single asset. This means there is no impermanent loss. There is also no lock in period (assets can be unstaked at any time). LPs get earn in the asset they provide; ie stake ETH earn ETH.
Whenever a user bridges assets between two cryptocurrency networks using the Narni Bridge, a nominal fee of 0.2% is charged, with a portion of this fee distributed proportionally among liquidity providers of the bridged asset.
The protocol offers flexibility to liquidity providers, allowing them to unstake their assets at any time. Fees earned by liquidity providers are automatically compounded, with earnings being added to their staked liquidity every five minutes, streamlining the process of earning passive income.
Users can add their liquidity either through Umbria Network’s website or send the funds directly to the appropriate Liquidity Address. Each liquidity address represents the liquidity pools for each bridge.
- Ethereum/Polygon bridge pool: 0x18C6f86ee9f099DeFe10b4201e48B2eF53BeAbd0
- Ethereum/Binance Smart Chain bridge pool: 0x862F84A7cD54c8EDF1aFc98a7a676B1eA6A27Df5
Umbria Network’s bridge liquidity protocol represents a significant advancement in enabling seamless cross-chain asset migration while empowering liquidity providers with opportunities to earn passive income. With its innovative approach and incentive model, the Narni Bridge is poised to play a pivotal role in driving the growth and adoption of decentralised finance in the blockchain ecosystem.
Interested in exploring partnership opportunities? Contact: Francesca De Franco — fran@umbria.network
