Understanding the process of utilizing the bridge into DeFi and how to stay safe in your journey.
December 23, 2022 · 3 min read
Are you ready to explore the world of decentralized finance with Divi? The missing element you’ll need is a bridge between the Divi and Ethereum blockchains, and is no longer a thing of the past! Keep reading to learn more about bridges and staying safe when interacting with them.
DeFi bridges are tools that allow users to transfer assets between different blockchain networks or protocols. These bridges enable users to access a wider range of dApps and services, such as lending, borrowing, and trading. Bridges can also facilitate cross-chain exchanges and swaps of different cryptocurrencies, allowing users to take advantage of different DeFi protocols and liquidity pools on different blockchain networks.
The Divi bridge will bring DIVI to the Ethereum blockchain, which is a huge step forward in our “Divi Everywhere” initiative.
Crossing the bridge
There are different ways that DeFi bridges can work, but we will look at the Divi-Ethereum bridge, as it may work a bit differently than other bridges you have used previously.
The user visits the bridge and provides the interface with the amount of DIVI they wish to swap and their ERC-20 address.
ChangeNow generates a unique DIVI deposit address for this transaction and supplies that address back to the user.
Next, the user deposits their DIVI to the address supplied by ChangeNow.
ChangeNow sends the same amount of DIVI(ERC-20)* to the user from eDIVI custody, and the user receives it in their ERC-20 wallet (MetaMask).
These assets are now available to be used on the Divi DeFi platform. If you wish to return your DIVI(ERC-20) to the Divi blockchain, the process works reversely.
DIVI to eDIVI
To access the Bridge visit this link: https://changenow.io/currencies/divi-erc20/divi.
For instructions on adding Divi (ERC-20) to your MetaMask, please visit the Metamask article.
The Divi Bridge
Unlike traditional bridges, the Divi bridge deposits the $DIVI into a staking vault, preventing them from being moved or spent. While your $DIVI is vaulted, it will earn staking rewards while continuing to secure the network. As staking rewards are generated in the vault, a proportional amount of DIVI(ERC-20) is minted on the Ethereum blockchain to ensure the 1:1 ratio is maintained.
Safety is Paramount
Do your own research: (DYOR) Make sure you understand how the cross-chain bridge works, what risks are involved, and how to use it properly.
Use a trusted bridge: Only use bridges that are widely used, well-respected in the community, and thoroughly audited.
Use small amounts: Start with small amounts of funds when you first use a bridge. This will allow you to test the process and familiarize yourself before committing larger transactions.
Follow best practices for secure transactions: Always double-check the address you are sending funds to, confirm the transaction details before signing, and use a secure internet connection when interacting with a bridge.
By following these guidelines, you can help to ensure the safety of your funds when interacting with a bridge in DeFi.
Bridges are used to move digital assets between different blockchains. The process is simple, as you deposit funds in and get different funds out. The Divi bridge will be the gateway to participating in the Divi DeFi platform. Hopefully, after reading this, you feel a bit more confident in how it works and excited about those layer-1 Divi staking rewards making the trip over to the Ethereum blockchain.
Next up in our journey, we will show you how to add Divi(ERC-20) to your web3 wallet. Things are getting serious, and you won't want to miss these next few articles…
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December 23, 2022 · 3 min read