Architecture

The Universal Token Standard is built for seamless deployment, management, and cross-chain interoperability of omnichain tokens. Integrated with the Entangle Bridge protocol, UTS enables efficient, secure cross-chain transactions using a flexible framework of smart contracts and mechanisms like mint-and-burn and lock-and-unlock.

Each token has its own token pool, which simplifies cross-chain transfers by handling the necessary token actions. Token pools act as a secure layer that limits how often tokens can be transferred, adding extra protection. They are set up to either "lock" or "burn" tokens on the source chain and then "unlock" or "mint" them on the destination chain. This results in four possible combinations: Burn and Mint, Lock and Mint, Burng and Unlock, and Lock and Unlock.

Burn and Mint

The burn and mint model maintains token supply consistency by burning tokens on the source chain and minting an equivalent amount on the destination chain. This preserves total supply during cross-chain transfers and supports custom tokenomics.

Lock and Mint

In the lock and mint mechanism, tokens are locked on the issuing blockchain, and fully collateralized wrapped tokens are minted on the destination blockchain. These wrapped tokens, with burn-and-mint functionality, enable cross-chain transfers and extended functionality.