"#Explained How Bridge Smart Contract enables cross-chain transactions
When a user wants to transfer 100,000 USDT from ETH to MoonBeam chain, the user issues a request bridge transaction on the ETH blockchain by using the DTO bridge application. The transaction then locks the to-be-bridged amount in the DTO bridge smart contract on ETH.
Then, 99,750 dUSDT (wrapped/locked token) will be issued on MoonBeam chain.
If that user transfers 99,750 dUSDT from MoonBeam back to ETH
- 99,500 dUSDT will be burned on MoonBeam, and
- 99,500 USDT will be released on ETH by the bridge contract.
That explains for the 0.25% fee (0.05% for buying back DTO, 0.2% for rewarding liquidity providers)
In case the users don't transfer back to the genesis chain, the token will keep being wrapped for 2nd, 3rd time. Their value and liquidity will be the same as USDT.
bit.ly/DOT-crosschain
#DotOracle $DTO"
