Catalyst Underwriting Open Beta
Catalyst Underwriting has now entered open beta! If you used our testnet, you may have been wondering: how come Catalyst swaps only take ~1 minute? And how can I get a piece of the Catalyst infrastructure pie?
Catalyst uses a solver network to improve every facet of its products:
- By designing a custom incentive system for relayers, we can support any AMB (like @WormholeCrypto) with the same excellent user experience.
- By selling certain system risks to solvers, we can reduce the apparent finality to users by up to 60x, from 30 minutes to 30 seconds!
Today, we will focus on Underwriters who will contribute the majority of the Catalyst Solver Network until Catalyst v2.
Underwriters buy finality risk from Catalyst in exchange for a portion of the swap output. The underwriter fronts the swap output along with some collateral, and executes the swap as if the messaging bridge had finalized the swap.
This also locks in the price for the underwrite, ensuring they only have to worry about the finality risk and not the price risk.
The Underwriting network allows Catalyst to offer the best of both worlds: full security for liquidity providers, alongside fast cross-chain swaps for the ultimate cross-chain swapping experience.
You may be wondering, what is the additional cost to you?
Underwriting is sustainable with even a 0.005% fee or even lower for some token and messaging bridge combinations.
How can you get a piece of the pie? 🍰
Until now, underwriting has been limited to a select number of operators. Underwriting has now entered Open Beta which means anyone can become an underwriter!
Learn more here: https://docs.catalyst.exchange/underwriter/setup/
About Cata Labs
Cata Labs is a software development company that contributes to open-source technology, including Catalyst Protocol. Cata Labs is backed by prominent investors such as Spartan Group, HashKey, Polygon and Circle.
Catalyst Protocol is an AMM purpose-built to connect all chains. Its mission is to empower individuals to acquire any asset on any chain. Using Catalyst, any chain can swap assets with major blockchains like Cosmos, Ethereum and its rollups. Catalyst Protocol is operated by Catalyst Foundation, based in the Cayman Islands. Find out more about the Catalyst Foundation at its Twitter.