Catalyst's Transaction Lifecycle
Here's a high-level overview of how Catalyst's components work together to facilitate cross-chain swaps:
- A user deposits assets into Catalyst in the origin chain.
- Catalyst calculates the units of liquidity from the deposit.
- Message containing the units of liquidity is sent from origin chain to destination chain, leveraging an interoperability protocol and its relayer ecosystem like IBC.
- Catalyst on the destination chain receives the cross-chain message and calculates how many assets to withdraw from the vault and send to the user.
- User receives assets on their designated wallet.
- Liquidity providers who contributed to the pool used in the transaction earn fees.