What Is Hop Exchange (HOP)? Complete Guide & Review About Hop Exchange

What Is Hop Exchange (HOP)?

Hop Exchange is a multichain bridge connecting Ethereum with Layer-2 networks. Using Hop, users can send tokens almost instantly across networks instead of having to wait multiple days. There are two core pieces to the Hop protocol architecture that make this possible.

A cross-network Hop bridge token that can be quickly and economically moved between L2’s or claimed on layer-1 for its underlying asset. Automated Market Makers to swap between each Hop bridge token and its corresponding Canonical Token on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.

Important Points Table Of HOP

How to Buy the Continental & Trade On Exchange?

HOP Price Live Data

The live Hop Exchange price today is $0.142164 USD with a 24-hour trading volume of $6,483,844 USD. They update HOP to USD price in real-time. The Exchange is down 0.03% in the last 24 hours. The current CoinMarketCap ranking is #2834, with a live market cap of not available. The circulating supply is not available and a max. supply of 1,000,000,000 HOP coins.

Canonical Tokens

A bridge may create a new layer-2 token representation of the layer-1 token being bridged, or the bridge may allow users to convert to an existing layer2 representation. Even if multiple layer-2 token representations of a layer-1 token exist, applications will likely gravitate towards a single representation of the layer-1 token.

This is because it’s in each application’s best interest to be composable with the other applications on the rollup. Therefore, each application will choose to use the version of each token that is most compatible with the other applications. The version most widely adopted is the canonical version for that rollup (e.g., ”Canonical ETH”, ”Canonical DAI”).

Prior Work

Bridging assets across blockchain networks is not a new problem. Solutions used to bridge various layer-1 networks and variants thereof may be useful for bridging rollups as well.

Proof of Authority Bridges

Proof of Authority (PoA) bridges rely on a set of authorities to attest that a token has been locked up in its native environment and then mint a representation of that token in the destination environment. This method is efficient but introduces a new trust assumption: the authorities will remain honest. A dishonest majority of the authorities can steal the locked funds and flood the destination environment with tokens that are no longer collateralized.

Hop Protocol

The Hop protocol provides a scalable rollup-to-rollup General Token Bridge using a two-pronged approach:

1. Create a cross-network bridge token that can be quickly and economically moved from rollup to rollup or claimed on layer-1 for its underlying asset.
2. Use Automated Market Makers to swap between each bridge token and its corresponding Canonical Tokens on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network. The combined approach allows users to quickly and trustless swap between layer-2 Canonical Tokens using the specialized bridge token as an intermediary asset.

Hop Bridge Tokens

Hop Bridge Tokens (e.g., ”Hop ETH”, ”Hop DAI” with symbols ”hETH”, ”hDAI” respectively) are specialized layer-2 tokens that can be transferred rollup-to-rollup in batches and act as intermediary assets in the Hop protocol. Each Hop Bridge Token represents a deposit in the layer-1 Hop Bridge contract. For example, if 4 ETH are deposited into the layer-1 Hop Bridge contract, 4 Hop ETH can be minted from a layer-2 Hop Bridge contract.

Inversely, a Hop Bridge token can be redeemed for its underlying asset on layer-1, which burns the Hop Bridge Token being redeemed on layer-2. When a Hop Bridge Token is transferred from rollup to rollup, it is burned on the origin rollup and minted on the destination rollup. As explained below, these immediate transfers are accomplished by allowing a ”Bonder” to front liquidity on the destination in exchange for a small fee. The Bonder’s liquidity is returned.