Ruby Guest Post
Apr 20, 2022
With the rollout of the SKALE V2 upgrade, Ruby is enormously excited at the prospect of launching on a DeFi network with the capacity to host thousands of dApps and process millions of transactions—quickly, securely and with no gas costs for end users.
As highlighted in yesterday's post on the SKALE blog, Modular SKALE Chains and the new Hub architecture, this point in time also offers a one-off opportunity to optimize the user experience and shape the future direction of the network before it is populated with dApps and services. The Europa Proposal seeks to establish community-wide consensus around bridging and token mapping standards that will benefit every SKALE user and project.
The Problem Of Liquidity Fragmentation
Due to the open and permissionless nature of the SKALE network, every bridge from Ethereum mainnet will have its own token wrapping standards. This risks the evolution of an ecosystem with as many different and incompatible versions of popular tokens (USDT, USDC, BTC, ETH, etc) as there are bridges, with the result that liquidity could become fragmented; a version of USDC that worked with one dApp may not be supported by another.
The Europa Proposal suggests addressing this issue by creating a default mainnet bridge on a community-controlled SKALE Chain, thereby ensuring agreement around common token wrapping standards for the whole SKALE network without relying on any centralized services.
A Gateway And Liquidity Hub
Control of the bridge and administrative rights to the Europa SKALE Chain would be shared—initially on a multi-sig basis, with keys held by major network stakeholders, and later by a DAO. Thanks to this shared control and the chain's proximity to mainnet, there is also an opportunity to create the first SKALE Hub: A cluster of dApps that cater to a certain market sector or set of user needs. Hubs are a key part of SKALE's strategy for the network.
Since Europa will be the entry point to the SKALE network for most users and tokens, it makes sense to create a Hub consisting of several liquidity-related dApps, giving users everything they need to get started on their journey into the SKALEVERSE.