The Launch of Polygon- Arbitrum Cross-layer Transferral System: A Novel Proof of Concept
Composable intends for Mosaic to be the cross-layer liquidity solution underpinning Ethereum Union transfers. Meaning, it will solve the problem of there not being enough liquidity to facilitate transfers between any 2 EVM compatible chains. To do so, the fundamental paradigm of liquidity providing needs to be applied yet rethought.
They had announced a proof of concept transferral system between Polygon and Arbitrum, set to launch Tuesday, September 14th.
Their POC is intentionally simple and guarded in order to gather data on the idea that liquidity providing on L1, as a means for automated L2 transfer liquidity providing, and prove that it is a profitable model, as previously illustrated.
The POC will go live, and users will be able to swap between Polygon and Arbitrum and L1. This allows for:
- Cross L2 swaps
- Fast exits to L1 from Polygon
- Fast exits to L1 from Arbitrum
The Polygon-Arbitrum PoC will act as a fully experimental approach for them to gather information to augment their existing simulation results. This will be critical in providing them with more realistic data to help them determine the best approach to take in resolving the liquidity management hurdle that has arisen across L2. With this launch of cross-layer transferral infrastructure’s PoC, they will have the real-world data needed to further refine their model and determine the optimal means of liquidity balancing across L2s.
