Introducing Tesseract: Revolutionising Cross-L1 Swaps on Avalanche

Announcing the upcoming launch of Tesseract, a new protocol set to transform swaps and tackle liquidity fragmentation within the Avalanche ecosystem. Developed by the team behind the successful Yield Yak platform, Tesseract is scheduled to go live in November, marking a new era of liquidity and efficiency for Avalanche users and builders alike.

What is Tesseract?

Built with Avalanche ICM and ICTT technology, Tesseract is a trustless, non-custodial, on-chain trading platform designed to connect liquidity across the C-Chain and Avalanche's growing network of L1s. By tapping into the entire Avalanche liquidity ecosystem, C-Chain and Avalanche L1 users will benefit by getting the best prices on their trades. Plus, with a simple integration, L1 operators can tap into Avalanche's deep liquidity without needing to deploy their own DEX or manage liquidity pools themselves.

Benefits for Users

1. Deeper Liquidity: Access liquidity across the entire Avalanche ecosystem, including the C-Chain and all integrated L1s.
2. Multi-Hop Routes Redefined: Tesseract automatically finds the most beneficial swap path, with potential to run multi-hop AND multi-L1 swaps to get you the best rates.
3. Simplified Experience: No need to manually bridge assets, switch RPCs, or search for the best liquidity – Tesseract handles it all behind the scenes and will deliver an easy to use front-end
4. Better Rates: By tapping into ecosystem-wide liquidity, users can receive better swap rates than on the C-Chain or any single L1.

What Does a Tesseract Swap Look Like?

When a user queries a swap, Tesseract checks both the C-Chain and Tesseract's registry of integrated L1s to see if a cross-L1 swap is beneficial. If so, it will display the cross-L1 swap route to the user for confirmation. Tesseract takes it from there.

Here is just one example of how Tesseract can be leveraged, from the point of view of an Avalanche L1 operator:

• <L1 token> is distributed to users as a reward.
• Users want to convert their rewards into USDC, however liquidity for the <L1 token> is on a DEX on the C-Chain
• With Tesseract available, users don't need to even be aware of the C-Chain, and can swap from <L1 token> to USDC while remaining on the L1. Tesseract bridges the token to the C-Chain, swaps it for USDC at the best rate, and bridges USDC back to the user.

Advantages for Avalanche L1s

1. Instant Ecosystem Access: Deploy Tesseract's smart contracts coupled with Avalanche's ICTT to tap into the liquidity of the wider Avalanche ecosystem.
2. Increased Liquidity: Your L1's liquidity becomes available for cross-L1 swaps, potentially increasing volume and activity.
3. Better User Experience: Offer your users seamless access to swap tokens without leaving your chain.
4. Focus on Core Features: Let Tesseract handle complex cross-L1 routing while you focus on building your L1's unique features.
5. Flexibility: Tesseract's design provides ultimate flexibility, allowing you to specify which L1s and tokens you want your users to interact with.

From the Creators of Yield Yak

Tesseract is being built by the team behind Yield Yak, one of Avalanche's most trusted and successful DeFi platforms. With a proven track record in creating user-centric DeFi tools, the team is bringing its expertise to solve the challenges of cross-L1 liquidity and swaps.

Tesseract follows the same open-source contributor model which encourages collaboration, and is being developed in alignment with Yield Yak whose evolution continues in parallel. Tesseract leverages DEX aggregator Yak Swap for key areas of its infrastructure (C-Chain routing), thus also supporting Yield Yak's growth.

Supported by the Avalanche Foundation

Tesseract is the recipient of a grant from the Avalanche Foundation. Grant funds are being used to fund development and most importantly secure the protocol with an extensive audit by industry-leading security firm OpenZeppelin.

Launch Details

Tesseract is planning to launch in November. Documentation for curious users and Avalanche L1 Developers is already accessible here:

Docs

GitHub

In the coming weeks, we'll be releasing more details including:

• Launch date
• Details on how Tesseract intends to reward user and L1 activity
• Publicising OpenZeppelin's protocol audit
• Role in Avalanche9000's incentivised testnet program
• Initial Supported L1s

Join our Discord channel and follow us on Twitter for the latest updates, and join us in ushering in a new era of interconnected liquidity on Avalanche.