Data Flow

Deposits and Repays

When a user deposits assets on a Spoke chain (e.g., Optimism), Wormhole monitors the deposit confirmation on Optimism. When the finality threshold is met, it relays the message to the Base Hub to record the deposit. The user can then utilize the deposited assets as collateral.

Simplified information flow from Spoke to Hub for Deposit and Repay functions

Borrows and Withdrawals

Borrow and withdrawal transactions on Pike are initiated on the Base chain. When a user initiates a transaction, such as borrowing USDC to the Optimism network, the Base Hub verifies the user's collateral and confirms the borrow action. Once the finality threshold is met, Wormhole relays the message to Optimism, and the Spoke deposits funds into the user's wallet.

Simplified information flow from Hub to Spoke for Borrow and Withdrawal functions

Borrows using CCTP

Users' deposits from any network are accounted for on the Base Hub. It maintains one unified account of USDC deposited on all Spoke chains. Users can withdraw and deposit USDC to and from any supported networks using Circle's natively issued USDC, without the need for token wrapping.

Simplified information flow for borrows of USDC to Optimism via CCTP (via liquidity on Arbitrum Spoke)

When a user wants to borrow USDC on Optimism but there is insufficient liquidity available, Pike steps in to transfer USDC from other chains. For example, if a user wants to borrow USDC on a chain with insufficient USDC (e.g., Optimism), the Hub relays a message to another Spoke (e.g., Arbitrum) to transfer USDC to the user's wallet on Optimism.