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docs/concepts/ca/unified-xcs-balance.md

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root_rel_path: ..
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---
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# Unified Cross-Chain Swap
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# Cross-Chain Swap (XCS)
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{% include "./text-snippets/ca/xcs_feature.md" %}

docs/img/an_ca_xcs_feature.webp

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docs/web3-stack/ca_stack.md

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The {{config.extra.arcana.ca_sdk_name}} supports [[concept-unified-balance|unified balance]] and [[concept-ca|chain-abstracted transactions]] for the chains and tokens^*^ listed below.
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To execute a chain-abstracted transaction, you need enough unified balance of the token type on the source chain. This balance must cover both the gas fee and the transaction amount on the destination chain.
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>>>>>>> main
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^*^ *Every chain may not support all tokens. The list of supported chains and tokens may differ for the Coral and the Folly testnet. The chains supported by the SDK and those supported in the standalone, CA wallet used in the demos may not always be the same.*
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includes/text-snippets/ca/generated_chainlist.md

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!!! an-note "Unified Balance (XCS)"
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Cross-Chain Support (XCS) enhances unified balance by allowing users to spend any supported token (e.g., USDT, USDC) from any source chain on any destination chain—provided the chain and token contract support the EIP-2612 `permit` function.
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[[concept-xcs|Cross-Chain Support (XCS)]] enhances unified balance by allowing users to spend any supported token (e.g., USDT, USDC) from any source chain on any destination chain—provided the chain and token contract support the EIP-2612 `permit` function.
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For chains or tokens without `permit/EIP-2612`, the protocol reverts to the older unified balance, which only combines the same token type across source chains.
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For chains or tokens without `permit/EIP-2612`, the protocol reverts to the basic unified balance, which only combines the same token type across source chains.
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### Ethereum
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Unified balance shows the total liquidity in a user's EOA account across multiple chains and tokens.
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Unified balance shows the total liquidity in a user's EOA account. It
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combines the token balance across multiple chains. This lets users spend
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the available liquidity on any destination chain via chain
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abstracted transactions.
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Chain abstraction lets users spend available liquidity on any destination chain. No bridges or pre-provisioned gas are needed. All cross-chain complexity is handled behind the scenes. Users approve just once for a seamless experience.
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No bridges or pre-provisioned gas are needed. All cross-chain complexity is handled behind the scenes. Users approve their intent to spend just once for a seamless experience.
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**Unified Balance Levels**
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!!! an-example "Example"
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Balance unification works at two levels, depending on chain and token support:
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- **Baseline Chain Cbstraction (CA):** Combines a single token type from source chains. Users spend the unified balance of that token on any destination chain.
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- **Cross-Chain Swap (XCS):** Combines multiple token types from source chains. Users spend as any token on any destination chain. This advanced feature requires chains and tokens to support `permit/EIP-2612`.
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Consider a wallet balance:
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- *Optimism:* 0.1 ETH, 0 USDT, 0 USDC
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- *Arbitrum:* 0 ETH, 12 USDT, 0 USDC
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- *Base:* 0 ETH, 10 USDT, 0 USDC
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- *Scroll:* 0 ETH, 0 USDT, 0 USDC
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!!! an-example "Example"
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With no unified balance or chain abstraction, user *cannot spend any USDT on Scroll* unless
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they use a bridge to convert tokens.
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With basic unified balance and chain abstracted transaction, user **can spend 18 USDT on Scroll**.
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| CA | XCS |
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|:---|:---|
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| User wants to spend **18 USDT** on *Scroll*.| User wants to spend **18 USDC** on *Scroll*.|
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| The wallet balance is:| The wallet balance is:|
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| | |
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| *Optimism:* 0.1 ETH, 0 USDT, 0 USDC | *Optimism:* 0.1 ETH, 0 USDT, 0 USDC |
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| *Arbitrum:* 0 ETH, 12 USDT, 0 USDC | *Arbitrum:* 0 ETH, 12 USDT, 0 USDC |
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| *Base:* 0 ETH, 10 USDT, 0 USDC | *Base:* 0 ETH, 10 USDT, 0 USDC |
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| *Scroll:* 0 ETH, 0 USDT, 0 USDC | *Scroll:* 0 ETH, 0 USDT, 0 USDC |
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| | |
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| CA allows user to use unified USDT balance on Arbitrum | XCS allows user to use unified USDT balance and
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| and Base and spend 18 USDT on Scroll. | spend it as USDC on Scroll. |
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Both types let users spend assets on any chain, even without prior liquidity on the destination chain. Cross-chain swap also allows combining multiple supported assets across chains, solving liquidity fragmentation.
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| Intent | No Unified Balance / CA | Unified Balance |
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|:---|:---|:---|
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| Spend 18 **USDT** on Scroll | ❌ | ✅ |
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<figure markdown="span">
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<img alt="With CA" src="{{config.extra.arcana.img_dir}}/ca_unified_balance.{{config.extra.arcana.img_png}}"/>
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<figcaption>Single chain liquidity vs. Unified Balance with Chain Abstraction</figcaption>
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<figcaption>Basic Unified Balance with Chain Abstraction</figcaption>
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</figure>
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**Cross Chain Swap (XCS)**
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Balance unification works at two levels, depending upon whether single token type is combined from source chains or can multiple token types be combined from source chains. The capability is subject to whether the chain and tokens supports `permit/EIP-2612':
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* Unified Balance (Basic)
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* Unified Balance with Cross-Chain Swap (XCS)
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{% include "./text-snippets/ca/xcs_feature.md" %}
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includes/text-snippets/ca/xcs_feature.md

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The Arcana chain abstraction protocol has evolved to a cross-chain swap
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enabled unified balance.
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**Unified Balance**
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**Basic Unified Balance**
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- Users could combine the same token type (for example, USDT) held across
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multiple source chains into a single, unified balance.
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chains combined, or had no liquidity on the destination chain, they
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could not complete the transaction.
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??? an-example "Example"
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User wallet balance:
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0 USDT on Scroll,
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0.25 USDC and 0.5 USDT on Arbitrum
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0.75 USDT on Base
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To spend 0.8 USDT on Scroll is not possible considering balance
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on Scroll.
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Unified balance (Arbitrum + Base) allows the chain
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abstracted transaction, but only with USDT.
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User cannot make a larger transaction, say 1.0 USDT and also
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utilize the 0.25 USDC available on Arbitrum.
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**Unified Balance + XCS**
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**Unified Balance with Cross-Chain Swap (XCS)**
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- The new improved unified balance approach allows cross-chain swaps.
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- Users can now spend any supported token (for example, USDT, USDC) from
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sufficient balance in a single token or on the destination chain.
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- This significantly increases the available liquidity and flexibility,
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enabling larger transactions and covers gas fee.
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- This advanced feature requires chains and tokens to support `permit/EIP-2612`.
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- The chain abstraction protocol falls back to the basic unified balance if the chains
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and tokens do not support `permit/EIP-2612`.
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!!! an-example "Example"
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??? an-example "Example"
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Consider a wallet balance:
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- *Optimism:* 0.1 ETH, 0 USDT, 0 USDC
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- *Arbitrum:* 0 ETH, 12 USDT, 0 USDC
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- *Base:* 0 ETH, 10 USDT, 0 USDC
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- *Scroll:* 0 ETH, 0 USDT, 0 USDC
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User wallet balance:
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0 USDT on Scroll,
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0.25 USDC and 0.5 USDT on Arbitrum
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0.75 USDT on Base
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With no unified balance or chain abstraction, user cannot spend any USDT on Scroll unless
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they use a bridge to convert tokens.
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To spend 1.0 USDT on Scroll is not possible considering balance
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on Scroll.
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With basic unified balance and chain abstracted transaction, user can spend 18 USDT on Scroll.
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XCS feature lets user spend 18 USDC on Scroll which is not possible with basic unified balance.
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Unified balance (Arbitrum + Base, USDT+USDC) allows the chain
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abstracted transaction.
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| Intent | No Unified Balance / CA | Unified Balance | Unified Balance + XCS |
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|:---|:---|:---|:--- |
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| Spend 18 **USDT** on Scroll | ❌ | ✅ | ✅ |
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| Spend 18 **USDC** on Scroll | ❌ | ❌ | ✅ |
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<figure markdown="span">
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![Intent Explorer]({{config.extra.arcana.img_dir}}/an_ca_xcs_feature.{{config.extra.arcana.img_png}}){ .an-screenshots }

mkdocs.yml

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- Concepts:
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- Chain Abstraction: concepts/ca/chain-abstraction.md
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- Unified Balance: concepts/ca/unified-balance.md
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- Unified Cross-Chain Swap Balance: concepts/ca/unified-xcs-balance.md
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- Cross-Chain Swap (XCS): concepts/ca/unified-xcs-balance.md
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- Allowances: concepts/ca/allowances.md
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- Intent: concepts/ca/intent.md
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- Intent Explorer: concepts/ca/intent-explorer.md

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