Demystifying ERC-7863: Cross-Chain Intents for Seamless Swaps

Introduction

Uniswap Labs, in collaboration with the Across protocol, has proposed a groundbreaking standard for cross-chain intents with the introduction of ERC-7863. This new Ethereum Request for Comment (ERC) aims to establish a unified framework for specifying cross-chain actions within intents-based systems. The proposal has been presented to the Ethereum Magicians forum and the CAKE Working Group for further discussion and review.

Why Cross-Chain Intent Standard?

Cross-chain interactions are becoming increasingly popular, but they can be complex and time-consuming. Traditional bridges often act as a single point of failure, and finding liquidity across multiple chains can be challenging.

Here’s where intent-based systems come in. They offer a more user-friendly experience by abstracting away these complexities. However, a lack of standardization has hampered their potential.

ERC-7863 proposes a solution by creating a common language for cross-chain intents. This allows different systems to interoperate, share resources, and ultimately, improve user experience.

The Problem

Cross-chain interactions, where users want to swap tokens between different blockchains, are becoming increasingly popular. However, existing solutions often suffer from:

Limited Liquidity

Finding enough assets to fulfil a swap across chains can be challenging.

Fragmented Infrastructure

Different bridges and protocols create a complex ecosystem for developers to navigate.

High Costs and Delays

Users might face higher fees and longer wait times due to inefficiencies.

What is ERC-7863?

ERC-7863 provides a standard API for cross-chain trade execution systems. At its core, it defines a generic CrossChainOrder struct and a standard ISettlementContract interface, enabling a consistent approach to cross-chain order management.

Motivation Behind ERC-7863

Intent-based systems simplify cross-chain interactions by abstracting the complexities and time constraints associated with traditional bridges. However, these systems often face challenges such as accessing sufficient liquidity and maintaining a network of active fillers across multiple chains. As the number of distinct chains increases, these challenges can lead to higher costs, longer wait times, and increased failure rates for users.

ERC-7863 aims to address these issues by allowing cross-chain intents systems to interoperate and share infrastructure, such as order dissemination services and filler networks. This interoperability can enhance user experiences by fostering competition among fillers, ultimately leading to more efficient order fulfilment.

How Does ERC-7863 Help?

ERC-7863 proposes a standardized approach to cross-chain intents. Here’s how it benefits developers:

Shared Infrastructure

By adopting this standard, different protocols can leverage the same infrastructure, like order dissemination services and filler networks. This increases liquidity and competition, ultimately leading to better user experiences.

Customizable Order Data

The orderData field within the CrossChainOrder struct allows developers to define specific swap details like tokens, amounts, and destination chains. This flexibility caters to various use cases.

Streamlined Approvals

The standard encourages the use of Permit2, a token approval mechanism that combines token transfer and order approval into a single signature. This simplifies the process for users and improves security.

Key Components of ERC-7863CrossChainOrder Struct

This core structure defines the parameters of a cross-chain swap, including details like the settlement contract, swapper address, deadlines, and the customizable orderData field serves as a standardized order format to be signed by users, disseminated to fillers, and submitted to settlement contracts. Here’s a breakdown of its key fields:

ResolvedCrossChainOrder Struct

The ResolvedCrossChainOrder struct offers a generic representation of an order, helping fillers compute the exact input and output information without specific knowledge of the orderData field.

ISettlementContract Interface

A compliant settlement contract must implement the ISettlementContract interface to standardize the initiation and resolution of cross-chain orders. This interface defines functions for initiating and resolving cross-chain orders. Settlement contracts implementing this standard ensure a consistent interaction pattern.

Usage of Permit2

While not specifically required by ERC-7863, the Permit2 standard provides an efficient way to streamline token approvals and order initiations. Using Permit2, swappers can approve token transfers and the order itself with a single signature, reducing the complexity and potential risks associated with separate approvals.

Key Considerations with Permit2:

• Use a Permit2 nonce for the order struct’s nonce field.
• Set the order struct’s initiateDeadline field to the Permit2 deadline.
• Use the full order struct, including parsed orderData, as the witness type during the Permit2 call to ensure transparency for the swapper.

Benefits for DevelopersSimplified Integration

The standard provides a clear framework for building cross-chain functionalities into your dApps.

Improved User Experience

By leveraging shared infrastructure and efficient order fulfillment, you can offer users faster and more cost-effective cross-chain swaps.

Enhanced Security

The use of Permit2 reduces the risk of accidental or malicious token approvals.

Further Considerations

• The orderData field allows flexibility but requires careful design to ensure clarity and security.
• Developers building settlement contracts should adhere to the ISettlementContract interface for seamless integration.

Conclusion

ERC-7863 marks a significant step forward in standardizing cross-chain trade execution within the Web3 ecosystem. By providing a unified framework for cross-chain intents, this new standard promises to enhance liquidity access, reduce costs, and improve user experiences. Developers are encouraged to explore and implement ERC-7863 to leverage its benefits and contribute to a more robust and interoperable cross-chain infrastructure.

Credits

This article is based on the original proposal by Uniswap Labs and Across protocol, as shared on the Ethereum Magicians forum.

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Demystifying ERC-7863: Cross-Chain Intents for Seamless Swaps was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.