Cross-Chain Flow
How native assets move through the protocol via Chain Key technology
Chain Key Technology
ICP's Chain Key allows canisters to:
- Hold assets on other blockchains (Bitcoin, Ethereum)
- Sign transactions using threshold cryptography
- Verify transactions from other chains
This eliminates the need for:
- Centralized bridges
- Trusted intermediaries
- Manual wrapped-token management
ckAsset Model
Liquidium pools use chain-key assets on ICP. You can enter a supported pool through either the native blockchain or the corresponding ckAsset ledger on ICP, depending on the route shown in the app. Native ICP stays on the ICP ledger and does not need a ckAsset conversion.
Native Asset | Chain Key Asset | Backing |
|---|---|---|
BTC | ckBTC | 1:1 backed by L1 BTC |
ETH | ckETH | 1:1 backed by L1 ETH |
USDT | ckUSDT | 1:1 backed by L1 Ethereum USDT |
USDC | ckUSDC | 1:1 backed by L1 Ethereum USDC |
ICP | ICP | Native ICP ledger asset |
Native-chain route: Send a supported native asset to the native-chain deposit address shown in the app. Chain Key infrastructure mints the corresponding ckAsset before the pool processes it.
ICP ckAsset route: If you already hold a supported ckAsset, send it directly over ICP to the ICRC-1 deposit address shown in the app. No additional ckAsset minting is required.
Deposit Routes (Native or ckAsset → Pool)
What you do
- Select the asset and deposit route shown in the app
- For a native-chain deposit, send the native asset to the Bitcoin or Ethereum address shown
- For a direct ckAsset deposit, enable ICP assets and send the ckAsset to the ICRC-1 address shown
- After the transfer confirms and Liquidium processes it, the funds appear in your profile
The destination is asset- and network-specific. Never send native ETH to a ckETH address on ICP or ckETH to an Ethereum address.
Withdrawal Flow (Pool → ckAsset → Native)
What you do
- Request a withdrawal to your Bitcoin address
- Lending canister validates health factor
- Pool processes withdrawal (standard or boosted)
- Receive native BTC
Borrow Flow (Cross-Chain)
You can supply BTC and borrow USDC across chains:
What you do
- Supply BTC as collateral
- Request to borrow USDT to your Ethereum address
- Protocol validates collateral covers the loan
- Receive USDT on Ethereum
Repayment Flow
Confirmation Requirements
Each chain has different finality characteristics:
Chain | Confirmations | Approximate Time |
|---|---|---|
Bitcoin | 4 | ~40 minutes |
Ethereum | 64 | ~13 minutes |
ICP | Ledger finality | Usually seconds, then Liquidium finalization |
The protocol waits for sufficient confirmations or ledger finality before crediting funds.
Cross-Chain Architecture Benefits
1. Native Asset UX
You can deposit and receive supported native assets without manually using a bridge. If you already hold supported ckAssets, use the direct ICP route shown in the app.
You do not need to understand the internal conversion process, and you do not need to convert ckAssets back to native assets before using Liquidium.
2. Unified Liquidity
All supported routes feed the same Liquidium pools:
- BTC from a Bitcoin wallet or ckBTC over ICP
- ETH from an Ethereum wallet or ckETH over ICP
- USDC/USDT from Ethereum or their supported ckAsset ledgers on ICP
- ICP from a supported principal, ICRC-1 account, or Account ID
- Single health factor across all positions
3. Fast Liquidations
ICP's sub-second finality enables:
- 15-second liquidation cycles
- Quick response to price movements
- Protocol solvency protection
Compare to:
- Bitcoin: 10-40 minutes per transaction
- Ethereum: 12+ seconds per block
4. Decentralized Security
Chain Key provides:
- No trusted intermediaries
- Threshold cryptography (many nodes)
- Cryptographic proofs of asset backing
Deployed Infrastructure
The protocol uses ICP's production Chain Key and native ledger infrastructure:
Component | Purpose |
|---|---|
ckBTC Minter | Mint/burn ckBTC ↔ BTC |
ckETH Minter | Mint/burn ckETH/ckERC-20 ↔ ETH/ERC-20 |
ckBTC Ledger | ICRC-1 ledger for ckBTC |
ckETH Ledger | ICRC-1 ledger for ckETH |
ICP Ledger | Native ICP ledger used by the ICP Pool |
ICP Pool Canister | Native ICP liquidity, deposits, repayments, borrows, and withdrawals |
Learn more about ICP's Chain Fusion technology at internetcomputer.org/chainfusion.