Tesseract Protocol

Tesseract Protocol facilitates fast, simple token swaps between Avalanche L1s (formerly known as subnets).

Target Features

• Cross-L1 swaps for curated L1s, DEXes, and tokens
• Sub-10 second round-trip transactions to/from C-Chain
• No RPC switching required from source L1

Prerequisites

• Home and Remote token deployments using ICTT
• L1 RPCs
• Cell(s) deployed across chains
• Cross-L1 message relayer

Architecture

Based on Yak Swap, using onchain quote and swap functions with adapters for different DEXes.

• Similar to Yak Swap, clients should gather quotes by querying the RPCs, compare prices, generate a swap using the best quote and post the transaction.
• Different to Yak Swap, clients should consider that swaps are nonatomic (settled over multiple blocks) and the best quote may pass through a sub-optimal route in case the swap fails and funds fall back to a chain where the user does not have gas.

Swap Failure Handling

• Single-hop rollback: sender receives tokenIn on sourceChain
• Multi-hop refund: tokenIn transferred to receiver on current chain (where the trade fails)

Important Notes

• Trust assumptions exist for L1 interactions
• tokenIn and tokenOut tokens used within a path must have ICTT deployments (for TokenHome and TokenRemote)
• Inherent risks in cross-L1 transactions, including relayer execution
• For full details on Avalanche's new L1 framework, refer to ACP-77.