Wormhole Settlement Suite Chooses Solana for Central Liquidity Layer

Wormhole, one of the crypto industry’s biggest cross-chain infrastructure providers, has unveiled a suite of intents protocols designed to optimize and simplify multichain transfers at an unprecedented scale.

Synthesizing three separate protocols into one cohesive solution, key players in the Solana ecosystem have already adopted Wormhole Settlement, including Phantom, Backpack, and Raydium.

What are ‘intents protocols’, and how does Wormhole Settlement leverage Solana to facilitate institutional-scale multichain transactions?

Wormhole Debuts Suite of Intents Protocols

Wormhole Settlement is a suite of three separate intents protocols that work together to optimize multichain transactions. Collectively, Wormhole Settlement’s three pieces improve cross-chain user experience, making transfers faster and more affordable.

Intents protocols are convenient solutions for abstracting and completing tasks based on intent. In traditional protocols, users are required to manually complete each transaction. For example, traders looking to swap tokens must navigate to a DEX, input the swap they’d like to perform and execute the transaction.

Meanwhile, in an intents protocol, users simply communicate their intent without specifying details, leaving the protocol to carry out the task. Through onchain auctions, 3rd-party operators bid for the right to complete tasks in the most efficient manner, taking a fee for completing the service.

Wormhole Settlement powers intents-based transfers across DeFi and emerging Fintech brands, giving institutional players a convenient, optimized method of managing liquidity flows across the industry’s leading networks.

With some of the world’s largest asset managers starting to launch tokenized funds, Wormhole argues that we are moving “toward a future where every asset, institution, and application is connected onchain.”

RWAs are quickly developing as a massive growth vertical within the crypto industry. However, poor interoperability between chains could stifle onchain RWA adoption and utility. Wormhole Settlement serves as a timely solution to this problem, allowing institutional funds to maximize liquidity flow between networks.

Solana to Serve as Wormhole Liquidity Layer

Wormhole Settlement is broken down into three separate protocols, with each playing a critical role in boosting composability and streamlining costs and speed.

• Mayan Swift - Introduces an on-chain auction mechanism on Solana, shifting competition among solvers (entities that fulfill orders) from speed-based to price-based, ensuring users receive the best possible rates.

• Liquidity Layer - Serves as the foundational infrastructure, allowing protocols across various blockchains to bundle actions together, enabling complex operations like cross-chain decentralized exchanges (DEXs) and lending platforms. 

• MCTP (Multichain Transfer Protocol) - Facilitates the transfer of assets across different chains, ensuring smooth and secure transactions.

While Wormhole is a multichain infrastructure provider, the protocol chose Solana to host the Wormhole Settlement liquidity layer. Wormhole argues that deploying its liquidity layer on Solana will improve capital efficiency and prevent cross-chain liquidity fragmentation.

$W Up 6.53% on Announcement

Despite trying conditions, markets have reacted well to Wormhole’s continued push toward providing institutional-scale services. 

Since the announcement of Wormhole Settlement, the protocol’s native token, $W, has surged 6.53%, running from $0.1347 to currently trade hands at $0.1345.

Wormhole Settlement comes following an industry-wide turn towards intents-based protocols. While intents-based protocols were originally shunned by many users, their popularity and adoption have steadily increased with the success of platforms like deBridge.

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