Aayush pfp
Aayush
@aayush
🧵 Rebalancing in Cross-Chain Bridges & Intent Networks - why it matters more than ever: Every time users bridge assets across chains, someone has to make sure there's liquidity on the other side. That "someone" is often a market maker or LP.
1 reply
0 recast
0 reaction

Aayush pfp
Aayush
@aayush
But this setup doesn’t scale unless we talk about rebalancing. Let's break it down👇
1 reply
0 recast
0 reaction

Aayush pfp
Aayush
@aayush
Imagine you're a bridge LP with $1M on Ethereum and $1M on Arbitrum. If everyone keeps bridging ETH --> Arbitrum, your Arbitrum side will get drained. You’ll be stuck with ETH on L1 and no liquidity to serve new users on L2 / Arb. That’s where rebalancing comes in.
2 replies
0 recast
0 reaction

Aayush pfp
Aayush
@aayush
Rebalancing = moving assets across chains in the background to restore balance and keep the bridge running smoothly. It’s like refilling a vending machine: users don’t see it, but it’s what keeps the experience seamless.
0 reply
0 recast
0 reaction