Backend Transaction Flow

The Transaction Flow page outlines the step-by-step process of using the IMX Bridge by RFC on the Binance Smart Chain (BSC) to transfer assets between BSC and the Immutable X chain. The following steps provide a high-level overview of the transaction flow:

1. User Initiates Withdrawal: The user initiates a withdrawal request from their wallet using the IMX Bridge interface. They specify the asset and amount they wish to withdraw from the Immutable X chain to BSC.

2. Transfer to IMX Treasury: Upon receiving the withdrawal request, the IMX Bridge SDK initiates a link transfer fund call to move the funds from the user's wallet to the IMX Treasury. This action ensures that the funds are available for further processing.

3. Price Calculation and RFC Treasury Request: Simultaneously, the IMX Bridge initiates a request to the RFC Treasury on the BSC chain. The request calculates the withdrawal amount based on the price obtained from reputable sources such as CoinMarketCap or CoinGecko. This step ensures that the user receives an accurate and up-to-date conversion rate.

4. Short Position and Volatility Mitigation: To mitigate price volatility risks during the withdrawal process, the IMX Bridge's architecture incorporates a Watcher Service. This service monitors price movements and initiates short positions at a perpetual futures exchange. By doing so, the bridge hedges against potential price fluctuations, providing a more stable withdrawal experience.

5. Reconciliation and Withdrawal Execution: At the end of the day or based on predefined transaction counts, a reconciliation process takes place. This involves closing the short positions and executing the actual withdrawal through the IMX official bridge. The reconciliation process provides a buffer period, typically 24 hours, to ensure security and reduce potential price volatility risks.

6. Assets Available on BSC: Once the reconciliation process is complete, the assets are made available on the BSC chain, ready for the user to access and utilize within the BSC ecosystem. Users can trade, transfer, or cash out their assets as desired.

The Transaction Flow page provides a comprehensive overview of the process involved in transferring assets between the Immutable X chain and BSC using the IMX Bridge by RFC. By following these steps, users can seamlessly bridge their assets while benefiting from reduced price volatility risks and improved security measures.

Next, let's explore the governance and update mechanisms of the IMX Bridge, ensuring transparency and continuous improvement.