Token issuers today face a number of problems when attempting to take their tokens across chains:
- Liquidity: Token issuers must continuously incentivize liquidity for each new bridge/chain AND require all end users to take slippage when transferring.
- Fungibility: Each time new bridges transfer a token, they each deploy their own version of the token, fragmenting liquidity and creating a broken user experience.
- Sovereignty: Whenever a bridge mints their version of a token, the token issuer loses control over the token contract on that chain.
- Lock In: Other proposed solutions to this problem require you to lock yourself into a single bridge and its security model forever.