The problem Off L1 solves
Fragmented liquidity across chains. With the rise of Ethereum layer 1 gas price, L1 is becoming less affordable. At the same time, many Uniswap clone started popping up on different EVM compatible chains such as QuickSwap(Matic), PancakeSwap(BSC), and HoneySwap(xDAI). Multiple AMMs provides opportunities for arbitrage trading but currently it is not easy to transfer tokens across different chains without paying high gas fee to cross bridges via L1. Off L1 solves this by maximising state channel technology developed by Connext.
Challenges we ran into
- Connext's documentation was fairly limited but Rahul from Connext team was super helpful in answering any questions.
- Pancake Subgraph became out of sync during the hackathon (and still it is) and took a while to figure out why it is. I am currently waiting until their reindexing complete.
- Portis assume that you connect to only one chain at the time so I have to write a special logic to pass different chain info as people navigate into different chains.
- Uniswap does not have direct pair for any combination so I was limited to offer only stable coins with many liquidities (USDT/USDC/DAI) which have direct pair. To support any pairs, I have to port a code that passes all the possible pairs but I decided not to include it in this hack due to the lack of time.
- Getting a transaction history from all 3 chains is hard. BitQuery supports BSC and Covalenthq supports Matic but I don't think neither supports xDAI hence xDAI has limited support.