Overview

The Bridge Architecture page provides an overview of the unique architecture of the IMX Bridge by RFC on the Binance Smart Chain (BSC), highlighting its efficient and secure asset transfer mechanism. Unlike traditional smart contract-based bridges, the IMX Bridge operates on separate layers to ensure higher security for withdrawals and utilizes parallel processing to track transactions across chains.

1. IMX Treasury and RFC Treasury

The IMX Bridge operates with two main treasuries: the IMX Treasury and the RFC Treasury. When a user initiates a withdrawal, the IMX SDK triggers a link transfer fund call to move funds from the user's wallet to the IMX Treasury. Simultaneously, a request is sent to the RFC Treasury on the BSC chain to execute the withdrawal based on the price sourced from platforms like CoinMarketCap or CoinGecko.

2. Watcher Service and Reconciliation Service

Behind the scenes, the IMX Bridge employs a Watcher Service and a Reconciliation Service to manage price volatility risks. The Watcher Service monitors price movements and initiates short positions at a perpetual futures exchange, acting as a hedge against potential price fluctuations. This helps to mitigate the volatility risk during the withdrawal process.

3. Treasury Management and Reconciliation

The IMX Bridge's architecture involves managing three main treasuries: the user's wallet, the IMX Treasury, and the RFC Treasury. These treasuries handle deposits, withdrawals, and collateral for shorting purposes. Throughout the day or based on predefined transaction counts, a reconciliation process occurs where short positions are closed, and withdrawals are executed through the IMX official bridge. This reconciliation process, although taking 24 hours, provides a buffer to ensure security and reduce potential price volatility risks.

The IMX Bridge by RFC employs a unique architecture that leverages separate layers, treasury management, and a reconciliation process to enable secure and efficient asset transfers between BSC and the Immutable X chain. By incorporating the Watcher Service and Reconciliation Service, the bridge minimizes price volatility risks and enhances the overall user experience.

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