SWEEP is a single fungible asset on all blockchains that implement the Sweep protocol. Savers can buy SWEEP on the blockchain of their choice. Borrowers can mint SWEEP on blockchains where they prefer to record their assets.
This mechanism brings deposits from one blockchain to invest on a different blockchain. The investment blockchain might have access to different DeFi strategies, or it might be preferred as a ledger for off-chain investments because of factors such as reliability or investor credentials.
Movement of funds is an important source of assets for L2s and new L1 platforms. As of this writing, 92% of fiat-redeemable stablecoins are recorded on three blockchains - Ethereum, Tron, and BNB.
SWEEP coins on different chains will have different asset lists that point to approved Stabilizers on the local chain. Borrowers can use local Stabilizers to mint SWEEP when conditions are favorable.
Each chain that implements the SWEEP protocol will have a local AMM with local supply and demand.
Minting on one chain, and buying on a different chain, will produce price differences and arbitrage opportunities. Marketmakers will move SWEEP to correct the price differences.
The protocol will implement weekly rebalancing on the highest volume blockchain, currently Ethereum.
The protocol uses LayerZero Omnichain Fungible Tokens. This system improves security by burning tokens that are sent from one chain to another, rather than holding them in bridge custody.
The protocol uses the LayerZero Omnichain governance to manage the asset allocations on remote chains.