Liquidity Network Based on Chain Abstraction: Cycle Network

Built upon the above principles, Cycle Network uses ZK-Rollup technology to build a secure communication infrastructure, achieving a seamless integration experience of the Omni Ledger without sacrificing security while greatly ensuring generality and scalability. The name “Cycle” signifies the cyclical process of infrastructure development, which will eventually lead to abstraction and integration, with application development becoming the core focus once again. Cycle is accelerating this process, defining a new paradigm of the Omni Ledger for developers and users, rescuing them from the current fragmented multi-chain dilemma.

Imagine a future where users can manage all their assets within a single account (or more specifically, a wallet address on a particular chain) and pay the underlying chain’s gas fees with any major asset without noticing. They can interact with applications across different chains, enjoying a seamless experience similar to Web2.

Developers, on the other hand, can use Cycle’s SDK to extend abstraction to the upper layers and develop various applications based on the full chain. They can easily achieve asset circulation within their applications across multiple chains without needing to deploy contracts separately on each chain, thereby serving users across different chains.

（1）Technical Architecture

To achieve ultimate security and trustlessness, Cycle’s omni-chain communication essentially deploys itself as a ZK-Rollup for all connected chains. The ZK-Rollup bridge provides trustless two-way verification. Cycle extends this feature from Ethereum to all external networks, anchoring multi-chain states to the Cycle state through an Aggregated Sequencer. This simplifies the state synchronization issue in distributed systems, creating a decentralized super ledger and liquidity hub for all blockchains.

Cycle Network’s overall architecture mainly consists of three components:

• Cycle Layer is the core layer of Cycle, serving as the Security Layer and Extend Layer of ZK-Rollup for unified cross-chain state management. Core modules include:

-Verifiable Aggregate Sequencer is the core module of Cycle’s transaction management, relying on Omni State Channel Indexer (OSCI) to aggregate transactions;

-Omni-Ledger is the global ledger on Cycle, storing all transaction states on Cycle Network, including omni-chain transactions and internal transactions of Cycle Layer.

• Extend Layer connects other blockchains outside the existing networks, including all L2 and other major L1 (Solana, TON, and Bitcoin). Core modules include:

-Bridge contract is used to lock original chain assets in the Rollup contract;

-ZK Verifier validates the ZK proofs generated by Cycle, ensuring the legality of the Rollup state;

-Extend DA provides data availability, ensuring data immutability and security.

• Security Layer ensures the security of transaction states, selecting Ethereum, the most secure programmable network. The core modules include:

-Omni State Channel Indexer (OSCI): A decentralized multi-chain indexer that records the rules for Sequencers packaging multi-chain Rollin and Rollout transactions;

-As a special Extend Layer, it also includes bridge contracts, a ZK Verifier, and DA modules.

（2）Communication Protocol

The essence of Rollin is that Cycle reads and locks the state updates of the connected chains through the bridge contract:

-Users initiate a Rollin transaction on L1 / LE, where the bridge contract deployed on L1 / LE executes the transaction, updating the Merkle tree root that records all cross-chain transactions between the source chain and Cycle and emits relevant events;

-Cycle receives and records the emitted events, updating the Merkle tree in the bridge contract when the next batch is generated, and the Rollin transaction is confirmed on Cycle.

The essence of Rollout is that the connected chains read Cycle’s state updates by verifying the ZK Proof submitted by Cycle:

-Users initiate a Rollout transaction on Cycle. Cycle packages the transaction and submits it to L1/LE for data availability (DA), executes the transaction, and generates a ZK Proof, which is submitted to the bridge contract on L1/LE for verification;

-Users on L1/LE send a confirmation transaction to the bridge contract to verify the proof, which includes Rollout metadata and a Merkle proof.

The following case illustrates how to use Rollin and Rollout interfaces. Alice from Arbitrum transfers 2U to Bob from Optimism through Cycle, and the status changes of their full-chain accounts is depicted in the top right corner:

-Initially, Alice holds 5U in Arbitrum, and Bob holds 4U in Optimism. Both Rollin their assets into Cycle.

-After Cycle confirms the state update of the bridge contract, Alice and Bob can freely transfer their assets across multiple chains. Alice transfers 2U to Bob.

-Bob can then roll out a total of 6U from Cycle to Optimism. If initiating a 3U Rollout transaction back to Optimism, then Bob will have 3U remaining and claim the assets on Optimism after the transaction is verified.

（3）Performance Advantages

By achieving secure full-chain state synchronization, developers can easily integrate their applications with omni-chain functionality using the SDK and API provided by Cycle Network. This allows them to retain maximum flexibility in application design while integrating multi-chain liquidity and application interoperability amidst the trend of multi-chain and multi-application chains.

• Security: Cycle starts from the most fundamental block construction, using mathematical proofs to verify cross-chain communication on the target chain, and ultimately verifying on Ethereum without relying on any trusted third party;
• Scalability: Cycle can serve as a Rollup for any Layer 1 blockchain;
• Programmability: Cycle itself is a Turing-complete Rollup, allowing developers to directly deploy omni-chain Dapps;
• Low Latency: Built on ZK-Rollup, Cycle ensures instant finality, improving cross-chain communication speed and user experience;
• High Capital Efficiency: No need for wrapping or pre-funding liquidity pools, with real-time burning and minting, thus enhancing capital efficiency.

Final Goals

Cycle provides application developers with a Core SDK that includes Rollin and Rollout interfaces. Based on the Core SDK, Cycle has also developed application-specific SDKs like Liquid Faucet. By integrating these SDKs, Dapps can access liquidity and users from all chains connected to Cycle.

Based on Cycle Network as the foundational layer, components for chain abstraction can be stacked upwards:

• Full-Chain Accounts: Cycle has successfully deployed the full-chain yield protocol Piggy Bank, allowing users to create full-chain assets (such as PiggyBox) on any network and interact with them, achieving multi-chain asset aggregation, generation, purchase, and gas fee payments.
• Liquidity Aggregation: Cycle can issue native tokens on any target chain. Dapps can quickly deploy on Cycle, accessing full-chain liquidity, increasing market depth, creating more trading opportunities, and reducing transaction costs. Liquidity providers integrate their liquidity into Cycle’s unified liquidity pool, which seamlessly allocates liquidity across all chains.
• Multi-Chain Gaming/Investment Trading: TapUP is a GameFi project developed by Cycle on Telegram, establishing a full-chain DeFi bot in a gamified manner. Users can trade assets from different chains within the game, and in the future, they can participate in game asset trading on the original chains like TON and other ecosystems.
• Other Applications: Cycle can support scenarios requiring full-chain data, such as AI, DePIN, payments, etc.

Cycle Network’s ultimate goal is to become the trustless liquidity infrastructure for all public chain infrastructures and applications, ensuring the security for asset, protocol, and governance. It strives to enable Web 3 mass adoption reaching billions of users.

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About Summer capital

Summer Ventures is an institutional VC aiming to empower Web3 builders and connect blockchain ecosystem with real world mass markets. Since 2018, it has invested in 40+ companies as lead and strategic investors across CeFi, DeFi, fintech, RWA, interoperable infrastructure, DePIN, and consumer applications. With its team’s strong network and experience in fintech, consumer, and hardware infrastructures, Summer Ventures is dedicated to supporting the future blockchain-enabled inclusive finance and data interoperability layer.

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