LayerZero V2 Part 4: OFT Token Bridging
This is Part 4 of a series on LayerZero V2. Part 1 covers the basics.
OFT (Omnichain Fungible Token) is the most common application built on LayerZero. It moves ERC20 tokens between chains.
The Lock-and-Mint Model
Ethereum (Home Chain) L2 Chains (Arb, Base, Opt)
┌──────────────────┐ ┌──────────────────┐
│ Your ERC20 Token │ │ OFT Contract │
│ (real token) │ │ (synthetic token) │
└────────┬─────────┘ └────────┬─────────┘
│ │
┌────────┴─────────┐ │
│ OFTAdapter │ ◄── LayerZero ──────► │
│ LOCKS tokens │ message │ MINTS tokens
│ when bridging out│ │ when receiving
│ UNLOCKS tokens │ │ BURNS tokens
│ when bridging in │ │ when sending
└──────────────────┘ │Bridge OUT (Ethereum → Arbitrum):