Connect to Chain

What Is "Connect to Chain"?

The Connect to Chain operation is a foundational feature of Soul that enables users to link positions from different chains into a unified account. By connecting a chain, users consolidate their assets and borrowing power across blockchains, forming their first cluster or multi-chain account. This functionality embodies Soul’s vision: enabling seamless capital unification across multiple chains.

How It Works

By default, each supported chain operates as an independent account for the user. This means users can deposit and designate collateral in any protocol on any chain, but borrowing is restricted to the collateral available within the same chain. In this state, no cross-chain functionality is activated.

When a user triggers the Connect to Chain operation, they link their collateral and borrow positions from the selected chain with the positions from another remote chain, forming a unified cross-chain account. This allows users to borrow on one chain using collateral from another, consolidating their positions into a single risk profile.

The process of connecting a chain involves two key concepts:

• Connecting a chain enables cross-chain functionality for both the selected chain and the target chain, forming a unified multi-chain account.

• The user designates a remote chain to manage the connecting chain’s collateral and borrow positions.

• These positions are synchronized with the Controller smart contract on the chosen remote chain.

• The chosen Controller calculates the user’s risk profile as a unified multi-chain account, ensuring seamless cross-chain borrowing and collaterization.

Technical Explanation

• By default, all user accounts in Soul operate in Single-Chain Mode, meaning assets and borrowing are managed independently on each chain.

• When a user initiates the Connect to Chain operation, they execute the connectToChain function on the Controller smart contract of the chain they wish to connect from (source chain), specifying the chain ID of the remote Controller they want to connect to (target chain).

• The Controller on the source retrieves all relevant data (collateral and borrow balances) from the money market smart contracts on the chain being connected.

• Using Soul's cross-chain messaging system, this data is securely transmitted to the Controller of the remote target chain, allowing it to aggregate the user's positions into a unified risk profile.

• Once connected, the source chain becomes part of the user's targer cluster, enabling the unification of collateral and borrowing power across these two chains.

• All positions across the cluster are managed as part of a single account, with collateral on one chain contributing to borrowing capacity on another.

• Unlike traditional bridging solutions, Soul does not move assets between chains. Instead, it replicates user positions across chains, ensuring security, simplicity, and efficiency.

Example: Connecting a Chain

• Imagine Alice:

• Supplies 5 ETH as collateral on the Ethereum-Aave Soul market.

• Wants to use this collateral to borrow 3,000 USDC on Polygon-Compound through Soul.

• Steps:

• Alice executes the Connect to Chain operation for Polygon, linking her Polygon positions to the Ethereum Controller.

• Soul's Ethereum Controller aggregates her positions on Ethereum and Polygon, creating her first multi-chain cluster.

• With her ETH collateral on Ethereum, Alice borrows 3,000 USDC on Polygon, leveraging her unified capital without moving assets.

Benefits of Connecting Chains

• Users can leverage assets across blockchains, maximizing their borrowing capacity and capital efficiency.

• Connecting chains is straightforward, with all operations managed transparently by Soul's smart contracts and messaging system.

• By replicating positions instead of transferring assets, the protocol avoids the complications associated with traditional bridges.

• Users can connect as many chains as needed, tailoring their clusters to their specific strategies and goals.

Transparency and Monitoring

Soul provides users with full transparency during the Connect to Chain operation:

• Real-Time Updates: Users can track their newly unified positions and borrowing limits immediately after connecting a chain.

• On-Chain Validation: All data synchronization is visible and verifiable on-chain, ensuring trust and reliability.

The Connect to Chain operation is the gateway to unlocking the full potential of Soul. By enabling users to unify their capital across blockchains, Soul revolutionizes how liquidity is managed in DeFi, offering unmatched flexibility, security, and efficiency.