Explore Bridged (Portal)

Understanding bridged tokens

Bridged tokens refer to tokens that are not native to the blockchain they are on. They are transferred from their native chain via a bridge and in the process made compatible with other chains. When you see Bitcoin and Ethereum on Solana for example, these are bridged versions of the native asset.

What's a bridge?

Just like the name suggests a bridge in crypto is a way of connecting different blockchains that are usually incompatible together. They are often used to transfer tokens from one chain to another.

Portal Bridge

The tokens in this category are bridged to Solana via Portal. Portal is a bridge built on Wormhole Protocol (a decentralized, universal messaging protocol connecting multiple blockchains). Amongst other things, Wormhole enables users to move tokens from one blockchain to another while ensuring the safety and security of the assets.

How it works

Imagine you want to transfer 1 ETH from Ethereum to Solana. When you bridge via Portal, the 1 ETH on Ethereum is locked in a smart contract to ensure security, and 1 Wrapped ETH is minted on Solana. You'll see ETH listed on Mango as ETH (Portal) so you know it's a wrapped token and where it came from.

Portal Bridge uses specialized validators called Guardians to facilitate cross-chain transfers. These validators are responsible for ensuring the legitimacy of each transfer and preventing bad actors from successfully sending unauthorized or fraudulent transactions.

The risks of bridging

Some of the largest hacks in crypto history have resulted from bridges being exploited. Even with extensive audits, smart contract code can be vulnerable to an unknown attack vector. It's important to understand this before interacting with bridges or any smart contract for that matter.

The value of bridged tokens relies on the collateral on the original chain remaining secure. If the tokens locked in the smart contract on the original chain are lost then the wrapped tokens are essentially worthless. The only way out is for the bridge to swallow the loss and redeem the value of the wrapped tokens.