Cluster Creation
What Is Cluster?
In Soul, each blockchain initially operates as an isolated environment, meaning users can only borrow based on the collateral they’ve supplied on that specific chain. To enable cross-chain borrowing, users can link a chain to a remote Controller by executing a "connect to chain" transaction. This forms a cluster: a group of chains that share a unified account and risk profile. For example, if Soul is deployed on Ethereum, Avalanche, and Arbitrum, and a user connects Avalanche to Ethereum, those two chains become a single cluster, while Arbitrum remains isolated. Each cluster functions independently from others, and by default, every chain starts as its own cluster. A cluster is defined as a set of chains connected to the same Controller and treated as a single entity for lending operations.
Through cluster creation, users can consolidate their positions on different blockchains, managing them as part of a unified global account. This provides greater flexibility, efficiency, and control over liquidity management while maintaining the integrity of each individual blockchain.
How It Works
1. Unified Market Management
A cluster groups all markets from selected blockchains. For example, users can pool collateral from Ethereum's and Polygon's markets into a single cluster. The unified account aggregates these markets, enabling borrowing and liquidity sharing across chains.
2. Replication, Not Bridging
Unlike traditional bridges that transfer assets between blockchains, Soul takes a more secure and efficient approach. Instead of moving assets, we replicate user positions across protocols using a unique cross-chain messaging system. Assets remain safely locked within their original chains, eliminating the risks associated with asset transfers and bridges.
3. Seamless Communication
Soul employs advanced cross-chain messaging technologies to synchronize user data across chains. This ensures that collateral and borrow positions are reflected in real time within the cluster, allowing users to take full advantage of their combined liquidity across blockchains.
Cross-Chain Messaging System
Our cross-chain messaging system is the backbone of cluster creation. It operates through secure and efficient communication between blockchains, enabling:
- Real-Time Data Synchronization
Updates to collateral, borrowing, or liquidations are communicated between chains to maintain accurate risk assessments and balances.
- Secure Operations
Messaging does not involve transferring assets but focuses on transmitting relevant data. This ensures that the underlying assets remain in their original chains, while user actions are mirrored across chains.
Soul integrates with cross-chain messaging providers like LayerZero, enabling low-latency and reliable communication between blockchains. The result is a robust and secure cross-chain experience without the need for traditional asset bridges.
Why Clusters Are Revolutionary
1. Enhanced Liquidity Management
Clusters enable users to maximize their borrowing power by combining liquidity from multiple chains into a single entity.
2. Cost Efficiency
By avoiding asset transfers, clusters eliminate the higher costs and complications associated with cross-chain bridging.
3. Security and Simplicity
Since assets remain in their original base chains, risks associated with bridging, such as asset theft or loss, are mitigated. Users benefit from a simplified yet powerful system to manage their DeFi operations.
Example Use Case
- Imagine Bob, a DeFi user:
Bob creates a cluster that combines his collateral in Ethereum, Polygon.
Using the cluster, he borrows assets on Polygon without ever moving his assets from Ethereum or Polygon.
All of Bob's collateral and borrowing positions are managed and tracked seamlessly through Soul's cluster system.
This approach revolutionizes cross-chain DeFi, offering unparalleled flexibility and efficiency.