Interoperability

Seamless Interoperability Across DeFi Protocols

Torch Finance is designed with interoperability in mind, facilitating efficient interactions not only between internal pools but also enabling seamless integration with external DeFi protocols.

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Efficient Interactions Between Internal Pools

Torch Finance pools are capable of direct communication and collaboration, minimizing the need for repeated asset transfers between contracts, which reduces additional costs and delays.

• Asset transfers occur only after all cross-pool calculations are complete, significantly saving on gas fees for users.

• Current cross-pool operations include interactions between Base Pools and Meta Pools, allowing liquidity to flow smoothly between pools and improving capital efficiency.

• More details: Refer to the Cross-Pool section for a detailed explanation of the processes

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Flexible Integration with External DeFi Protocols

Torch Finance supports interaction with external DeFi protocols through a payload mechanism designed for deposit and swap operations.

• Fulfill Payload: Upon successful transactions, Torch Finance packages user-defined parameters or data into a fulfill payload and sends it to the user’s specified contract or address. The receiving contract can execute follow-up actions, such as depositing assets into another protocol or executing custom logic.

• Reject Payload: In case of failed or incomplete transactions, Torch Finance sends a reject payload containing custom rollback parameters or recovery data. The receiving party can use this information to manage assets or trigger rollback procedures.

This design allows users to customize payload parameters during asset swaps or deposits, enabling Torch Finance to interact flexibly with other DeFi protocols. This not only enhances transaction versatility but also positions Torch Finance as a more scalable liquidity solution.