Understanding Cross Chain Bridges: How to use the RSK Token Bridge - The Complete Guide to Stablecoins

In this section, we will cover what cross chain bridges are, how they work and how to use the RSK Token bridge to cross token between chains.

RSK-Ethereum Token Bridge

What is a Cross-Chain Bridge?

A cross-chain bridge or a blockchain bridge enables the transfer of token assets, smart contract instructions or data between blockchains. Two chains may have different protocols, rules and governance models, but a cross-chain bridge connects these disparate blockchains together by interoperating securely.

Why are cross-chain bridges important?

Cross-chain events are very important in the future of cryptocurrencies. Exchanging tokens between networks allows the token holders to use them in their favourite chain without being restricted to the network choice of the contract owner. Moreover, this also allows layer 2 solutions to use the same tokens on different chains. The combination of token bridges and stable coins creates a great way of payment with low volatility across networks.

How do cross-chain bridges work?

Different bridges work in different ways, however, the following diagram from the RSK token bridge illustrates the main concepts.

In a nutshell, federators sit between two blockchain networks, validating and voting on each request. They then allow tokens on one network to be locked on one network and unlocked on the other network.

Cross DAI to rDAI

Using Defiant

In this section, we will learn how to cross DAI on the ethereum network to rDAI on the RSK network using Defiant.

We are going to take DAI on the Ethereum network and lock it on the Ethereum network, then use a bridge with the RSK network, so you get the same amount but this time in rDAI.

This provides lower transaction fees when used on the RSK network.

Prerequisites

DAI
ETH (Min $30 - $50)
RBTC (Min $10)
Defiant Mobile Application

Watch the explainer video below to learn how to cross DAI to rDAI using the RSK Token Bridge:

Note: Estimated time to cross tokens on the bridge is 24hrs.

In the above explainer video, we were able to setup a Defiant Wallet, and cross DAI → rDAI using the Bridge via Defiant mobile app.

Using KriptonMarket

In this section, we will learn how to cross DAI on the ethereum network to rDAI on the RSK network using KriptonMarket swap service and the defiant wallet.

We are going to take DAI on the Ethereum network and lock it on the Ethereum network, then use a bridge with the RSK network, so you get the same amount but this time in rDAI.

This provides lower transaction fees when used on the RSK network.

Prerequisites

DAI
ETH (Min $30 - $50)
RBTC (Min $10)
KriptonMarket Swap Service
Defiant Mobile Application

Watch the explainer video below to learn how to cross DAI to rDAI using the RSK Token Bridge:

Note: KriptonMarket charges fees between 2-3% depending on the amount sent.

In the above explainer video, we were able to cross DAI to rDAI directly in defiant wallet using the KriptonMarket option.

Stablecoin Gas fee Comparison tool

This is a tool for comparing average gas fees paid for the last 200 transfer transactions of DAI and USDT Stablecoins on Ethereum and RSK blockchains. The tool makes a live request to the Covalent database, gets the information about the latest transactions of selected Stablecoin and displays the prices converted to USD using the latest rBTC - USD and Ether - USD exchange rate.

Stablecoin Gas Fee Comparison Tool

If you would like to delve deeper, here are some resources and tools that we recommend.

Resources: