What Is Hop Exchange(HOP)? Complete Guide & Review About Hop Exchange

What Is Hop Exchange(HOP)?

Hop Exchange is a multichain bridge connecting Ethereum with Layer-2 networks. Using Hop, users can send tokens almost instantly across networks instead of having to wait multiple days. There are two core pieces to the protocol architecture that make this possible. A cross-network Hop bridge token that can be quickly and economically moved between L2’s or claimed on layer-1 for its underlying asset.

Automated Market Makers to swap between each Hop bridge token and its corresponding Canonical Token on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.

HOP Price Live Data

The live Hop Exchange price today is $0.079958 USD with a 24-hour trading volume of $2,705,770 USD. They update to USD price in real-time. This Exchange is down 11.35% in the last 24 hours. The current CoinMarketCap ranking is #2910, with a live market cap of not available. The circulating supply is not available and a max. supply of 1,000,000,000 HOP coins.

If you would like to know where to buy Hop Exchange at the current rate, the top cryptocurrency exchanges for trading in stock are currently MEXC, BitMart, LBank, Hoo, and Bibox. You can find others listed on crypto exchanges page.

Prior Work

Bridging assets across blockchain networks is not a new problem. Solutions used to bridge various layer-1 networks and variants thereof may be useful for bridging rollups as well.

Hop Protocol

The Hop Exchange provides a scalable rollup-to-rollup General Token Bridge using a two-pronged approach:

1. Create a cross-network bridge token that can be quickly and economically moved from rollup to rollup or claimed on layer-1 for its underlying asset.
2. Use Automated Market Makers to swap between each bridge token and its corresponding Canonical Tokens on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.
3. The combined approach allows users to quickly and trustlessly swap between
   layer-2 Canonical Tokens using the specialized bridge token as an intermediar
   asset.

Hop Bridge Tokens

Hop Bridge Tokens (e.g., ”Hop ETH”, ”Hop DAI” with symbols ”hETH”, ”hDAI” respectively) are specialized layer-2 tokens that can be transferred rollup-to-rollup in batches and act as intermediary assets in the Hop protocol. Each Hop Bridge Token represents a deposit in the layer-1 Hop Bridge contract. For example, if 4 ETH are deposited into the layer-1 Hop Bridge contract, 4 Hop ETH can be minted from a layer-2 Hop Bridge contract.

Inversely, a Hop Bridge token can be redeemed for its underlying asset on layer-1, which burns the Hop Bridge Token being redeemed on layer-2. When a Hop Bridge Token is transferred from rollup to rollup, it is burned on the origin rollup and minted on the destination rollup. As explained below, these immediate transfers are accomplished by allowing a ”Bonder” to front liquidity on the destination in exchange for a small fee.

Automated Market Makers

Each Hop Exchange Token represents a layer-1 token and can be quickly and economically moved from rollup to rollup. Under normal network conditions, each Hop Bridge Token is worth exactly 1 of its L1 counterpart because it can be redeemed on layer-1 at any time. However, third parties on each rollup are not likely to adopt Hop Bridge Tokens directly.

It is more likely that the Canonical Tokens they adopt are produced by the rollup’s Native Token Bridge or an Application-Specific Token Bridge as previously discussed. To complete the bridge between the layer-1 token and its Canonical layer-2 counterpart, an Automated Market Maker (AMM) can be deployed to enable swaps between each Hop Bridge Token and its corresponding Canonical Token.