Contents

1. What are xTokens?
2. How do xTokens work?
3. Requirements to Set Up your xToken
4. Why Connext?
5. Additional Resources

TL;DR: Connext is the most secure and efficient way to create crosschain tokens: no infrastructure is required, and the smart contracts are easy to implement. Tokens can then be moved almost instantly across any of the connected chains with 0 slippage (there is a 5bps for liquidity providers) and the highest security possible.

What are xTokens?

Crosschain (xchain) Tokens are erc-20 tokens that can be transferred with no slippage across chains without compromising on security.

Today, when you want to make your token available on multiple chains, you have to either:

1. Provide significant liquidity to a bridge on each chain (and require users to take slippage when transferring across chains); or
2. Mint a new representation of your token through the bridge, locking yourself into that bridge and its security model forever.

Connext provides a new approach to making your token natively crosschain without compromises. This makes your xToken:

• Transferrable across chains with no slippage.
• Deployed and fully controlled by you, the token issuer.
• Secured fully by Ethereum L1 and the canonical bridges of each chain.
• [Coming Soon] Fungible against the token representations minted by canonical bridges (rollup bridges, Polygon PoS bridge, etc.)

How Do xTokens Work?

Connext works by batching data associated with crosschain interactions (transfers and arbitrary messages) into merkle roots. These roots are passed to Ethereum L1 from each chain through canonical bridges, further batched on L1, and then passed back to each other chain. This forms a cheap, trust-minimized message highway through which you can communicate between chains.