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Explained: What is Bridging and How Does it Work? (Bridge ETH to Arbitrum, zkSync, etc.)

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by COINS NEWS 76 Views

I often see people asking how to sell their Moons, how to provide liquidity, or how to use the new Ethereum L2s.

These activities can all have separate explanations, but if you understand bridging to different networks, you won't need any hand-holding.

So, let's start at the beginning:

Networks Explained Simply

Most EVM compatible networks (those that you can use in MetaMask) support various assets.

The Ethereum network is one such example, where you can have ETH (to hold or pay for gas), but also you can hold USDC, AAVE, GRT, and much more cryptos.

When your assets are in your MetaMask wallet, you can connect to DEXes (decentralized exchanges, such as Uniswap) and swap between them.

Why would You Need a Bridge?

When you're connected to the Ethereum network, you can only swap and transact on that network.

But assets can "live" on different networks. You can have USDC on Ethereum, on Arbitrum, on Binance Smart Chain, etc.

If your (centralized) exchange only accepts USDC deposits on the BSC network, and you send USDC from your wallet connected to the Ethereum network, the funds may never arrive. Actually, this is a mistake that many newbies do before they understand networks/chains.

Another example, let's say there is a new token you're interested. For illustration purposes, let's say that's GMX, that's only available on the Arbitrum network. So you can't simply swap your ETH from Ethereum mainnet into it.

In both scenarios described above, you need a bridge.

What is Bridging (in Crypto)?

Bridging means transferring a digital asset from one network to another.

Once you understand the problems it solves, the explanation is much simpler. :)

How to Bridge Assets?

There are various bridges available and you'll need to use the one that suits your needs (supports the networks and the asset you want to bridge).

My top 2 picks for this moment are:

You simply connect your MetaMask and select:

  1. The network you're bridging from
  2. The network you're bridging to
  3. The asset you want to bridge

Click send and within 5 minutes, your assets will arrive on the other side.

Edit: Note: There are many other bridges, and most networks have their dedicated bridges, but the 2 above are general purpose.

One such example is zkSync - if you want to use their bridge, you can do it on https://bridge.zksync.io/. The only downside is that it might cost you $5-10 in ETH gas fees, but it might make you eligible for an airdrop worth multiples of that in the future.

Conclusion

If you've read so far, all your questions are now answered.

Now, whether you were confused about which network to initiate a withdrawal from a CEX, or how to use some coin on a network you're unfamiliar about, it should be clarified.

So, in the case for providing liquidity for Moons:

  1. Bridge your ETH to Arbitrum Nova using Orbiter Finance (link above)
  2. Go to SushiSwap and add to the ETH/MOON pool

It's as easy as that!

Edit: if you need a detailed instructions on providing Moon liquidity, I just published this post: https://www.reddit.com/r/CryptoCurrency/comments/12ff2bu/providing_liquidity_for_moons_made_easy_explained/

Happy DeFi adventures!

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