How the XCVM works


​Virtual machines are abstracted away from activities required for cross-chain operations such as security, finality in different networks, fee calculation, and provide a simple interface for developers to build on. The security and finality are dependent on the bridging technology used and fees will vary according to network traffic.

how_the_xcvm_works

The XCVM combines different bridging protocols, such as IBC, XCM, and Mosaic Phase 3, and is capable of integrating new bridging technologies. For example, for a cross-chain transfer, we model it as a set of reversible state transitions with different approximate costs for each transition. The XCVM offers Picasso-based decentralized applications (dApps), different hooks, and updates on the status of any cross-chain transfers, as well as RBAC-based flow control for actively managing the execution of different stages. dApps incur transaction fees for calling into the XCVM.

For example, let’s say a user wants to borrow with USDC (collateral) on Angular Finance, a secondary pallet on Picasso, and invest into a liquidity pool on SushiSwap. Thanks to our technology, this process can occur cross-chain-and-layer. Upon instruction and orchestration by the Composable XCVM, the Routing Layer selects the optimal route for the user’s desired outcome, which propagates communication cross-ecosystem, and to our transfer availability layer, Mosaic, which then facilitates the transfer of the borrowed asset to a liquidity pool on SushiSwap, with settlement being recognized on our parachain. This process, as facilitated by Composable and the XCVM, is depicted below:

cross_chain_lending_example_composable_xcvm An cross-chain lending example using the Composable XCVM