Gasp: A DeFi Application Specic Rollup as a Consolidation Layer for All Assets
Cryptography and Security
Summary
The authors present Gasp, a special kind of decentralized exchange built as a Layer 2 rollup that connects many blockchains. They use a technique that avoids fees for swapping tokens across chains while keeping the original security of the tokens. Gasp also has systems to protect users’ funds, reduce unfair profit taking, and make staking more efficient by combining it with liquidity provision. The paper explains how Gasp solves common problems in moving assets between blockchains and improves decentralized finance.
Authors
Stanislav Vozarik, Mateusz Nowakowski, Shoeb Siddiqui, Elliot Hill, Gleb Urvanov, Peter Kris
Abstract
Gasp is a decentralized exchange designed as an application-specific Layer 2 (L2) rollup with omnichain connectivity, leveraging EigenLayer's restaked ETH for computation correctness and finalization. With a goal of being a consolidation layer for all crypto assets, the Gasp platform employs optimistic rollup technology to facilitate gas-free, native cross-chain swaps without reliance on traditional bridges, ensuring tokens retain their original L1 grade security. By combining an app-chain architecture with escape hatch mechanisms, Gasp guarantees withdrawal, while MEV minimization through Themis architecture reduces value extraction risks. Gasp's proof-of-liquidity framework unlocks staked liquidity, enhancing capital efficiency and liquidity depth by integrating staking with liquidity provisioning. Additionally, the protocol introduces a time-based reward mechanism, incentivizing long-term liquidity commitment via an asymptotic reward curve. This paper examines the current challenges in cross-chain communication, delineates Gasp's architectural innovations and security guarantees, and examines novel approaches to optimizing DeFi ecosystems.