User Trading Flow

1. Normal Swap Example: ETH on Ethereum → USDT on BSC

Route 1: Direct Swap on Ethereum

Process：

• User swaps ETH → USDT directly on Ethereum.

Factors to Consider:

• High Ethereum gas fees.

• Slippage due to liquidity conditions.

Route 2: Cross-Chain Swap via Axelar

Process:

• Step 1: User initiates a cross-chain swap from ETH on Ethereum to USDT on BSC.

• Step 2: Axelar bridges ETH from Ethereum to Binance Smart Chain (BSC) using its Interchain Messaging Protocol (GMP).

• Step 3: The platform executes a token swap (ETH → USDT) on BSC.

Factors to Consider:

• Lower gas fees on BSC compared to Ethereum.

• Bridging fees incurred via Axelar.

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2. Limit Order Example: BTC on THORChain → ETH on Ethereum

Route 1: Direct Limit Order on THORChain

Process：

• User sets a limit order to swap BTC → ETH on THORChain.

• THORChain’s native price feeds monitor the market price of BTC and ETH.

• Once the specified price condition is met, the limit order is executed.

Factors to Consider:

• Native asset support on THORChain (no need for wrapped BTC or ETH).

• Low slippage due to deep liquidity pools.

Route 2: Cross-Chain Limit Order via Axelar

Process:

• Step 1: User places a limit order to swap BTC on THORChain → ETH on Ethereum.

• Step 2: Axelar bridges BTC from THORChain to Ethereum once the price condition is met.

• Step 3: The platform swaps BTC → ETH on Ethereum.

Factors to Consider:

• Bridging fees and Axelar relayer costs.

• Ethereum gas fees for executing the final swap.

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3. Auto-DCA Example: USDT on BSC → ETH on Ethereum

Route 1: Periodic Swaps on BSC

Process:

• User schedules Auto-DCA purchases to buy ETH with USDT periodically on BSC.

• The platform swaps USDT → ETH on BSC.

Factors to Consider:

• Lower transaction fees on BSC.

• Potential price variations during each scheduled purchase.

Route 2: Cross-Chain Auto-DCA via Axelar

Process:

• Step 1: User configures Auto-DCA to purchase ETH on Ethereum using USDT on BSC.

• Step 2: On each interval, Axelar bridges USDT from BSC to Ethereum.

• Step 3: The platform swaps USDT → ETH on Ethereum.

Factors to Consider:

• Bridging fees and Axelar gas costs for each interval.

• Higher Ethereum gas fees for executing swaps.

• Execution intervals ensure cost-averaging but can accumulate gas costs over time.

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Cost Estimation & Execution

Normal Swap Cost Comparison

Route 1 (Direct on Source Chain):

• Swap Fee: Platform-specific fee, if any.

• Gas Fee: High Ethereum gas costs.

Route 2 (Cross-Chain):

• Bridging Fee: Gas costs for Axelar bridge + relayer fee.

• Gas Fee: Lower BSC transaction costs.

Limit Order Cost Comparison

Route 1 (Direct on THORChain):

• No additional fees for bridging or wrapping.

Route 2 (Cross-Chain):

• Bridging Fee: Axelar costs for cross-chain transfer.

• Gas Fee: Ethereum gas costs for executing the swap.

Auto-DCA Cost Comparison

Route 1 (Single-Chain):

• Gas Fee: Lower BSC transaction costs for each interval.

Route 2 (Cross-Chain):

• Bridging Fee: Axelar costs for each transfer interval.

• Gas Fee: Ethereum gas costs for executing swaps.

Execution:

• The platform calculates and ranks routes based on total costs, slippage, and speed.

• The best route is selected, and trades are executed seamlessly via the Smart Routing Engine.