Arcana’s Chain Abstraction (CA) enables instant, bridgeless transactions in Web3 apps. It solves the liquidity fragmentation in users’ EoA wallet caused by the proliferation of L2 chains.
The protocol is a trust-minimized, scalable system built on the Cosmos app chain infrastructure. It uses intent-based fulfillment for instant liquidity via simple, pluggable FCFS solvers—no auctions are required.
Developers can integrate the protocol into Web3 apps through the Chain Abstraction SDK.
This paper explains how Arcana’s solution lets users view and spend their unified balance across chains.
The emergence of L1 and L2 blockchains has fragmented liquidity, blockchain assets, and user states, presenting challenges for users seeking access to newer applications or chains. Users are forced to navigate complex blockchain processes, bridge funds, or acquire native tokens, assuming they know how to obtain the necessary assets efficiently using the available liquidity in their EOA wallets. This situation leads to increased user onboarding friction, reduced retention rates, and limited application growth for developers..
Arcana’s Chain Abstraction SDK enables Web3 developers to provide a unified balance for users. This simplifies onboarding, reduces drop-offs, and offers a more connected Web3 experience. Unlike other solutions, Arcana’s CA protocol does not require users to have a new address or a smart account. It works with EOA wallets and doesn’t require swaps, bridges, or custody risks, making it ideal for developers building chain-agnostic apps.
This section defines key terms to clarify the challenges, solutions, and Arcana’s chain abstraction architecture, ensuring readers are aligned with the concepts discussed in the following sections.
An intent is a problem statement that expresses the user’s transaction goals without specifying how to achieve them.
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Example: "In my EoA, I have 10 USDC on Optimism and 20 USDC on Arbitrum, and I want to send 25 USDC to the Polygon address 0xnnn.”
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Allowances enable users of the Web3 app to activate the unified balance feature for any cross-chain transaction. This feature unlocks fragmented liquidity across source chains and allows users to spend it on any destination chain, even if it lacks sufficient balance.
Users can set up allowances anytime before initiating a multi-chain transaction. By doing so, they permit Arcana Vault contracts on the source chains to collect the funds required to execute the transaction seamlessly on the destination chain.
Once a unified balance is available on the source chains, users can request funds on the destination chain.