How Does Tonify Work
Tonify introduces a groundbreaking approach to cross-chain stablecoin transfers, eliminating the traditional wrapping mechanism through an innovative liquidity pool system. In detail, when the user sends tokens via the Tonify , the following happens:
Bridge exchanges incoming tokens into their dollar value in the token pool for this particular token
This value is sent via the underlying messaging protocol to the destination chain
The bridge contract on the destination chain swaps dollar value to the tokens from the liquidity pool and sends them to the recipient
Key Advantages
Instant cross-chain transfers
No token wrapping required
Native stablecoin settlements
Competitive fees
Token Reception
User deposits stablecoins (USDT) into source chain pool
Smart contract validates the deposit
Dollar value is locked in the pool
Cross-Chain Message Transmission
Dollar value information is encoded
Message is transmitted via secure messaging protocol
Destination chain receives validated message
Destination Chain Settlement
Equivalent value retrieved from destination pool
User receives native tokens directly
No unwrapping or claiming required
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