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Bridging Assets

City Chains leverage Arbitrum's native bridge infrastructure to enable secure asset transfers across layers. This canonical bridge provides the most secure path for moving assets between Ethereum, Locale Network (L2), and individual City Chains (L3).

Bridge Architecture​

Multi-Layer Bridge Flow​

Asset Bridging Layers
City Chain A (L3)
Local stablecoinLock tokens
Arbitrum Bridge Layer (L2)
Canonical bridgeState verification
City Chain B (L3)
Mint wrappedLocal stablecoin

Token Locking Model​

DirectionSourceDestinationMechanism
DepositL1L2Lock on L1 → Mint on L2
DepositL2L3Lock on L2 → Mint on L3
WithdrawL3L2Burn on L3 → Unlock on L2
WithdrawL2L1Burn on L2 → Unlock on L1

Supported Assets​

Native Bridge Support​

Asset TypeL1 → L2L2 → L3Notes
ETHNativeNativeGas token on all layers
USDCGatewayGatewayPrimary stablecoin
USDTGatewayGatewayTether stablecoin
ERC-20Custom GatewayCustom GatewayPer-token configuration

Local Stablecoins​

City Chains can mint local stablecoins backed by bridged assets:

AssetOriginUse Case
KCD (KC Dollar)Kansas CityLocal commerce, micropayments
USDCEthereumBacking for local stablecoins
Bridged ETHEthereumGas, collateral

Gateway Contracts​

L1GatewayRouter​

The L1 Gateway Router manages deposits from Ethereum to Locale Network:

FunctionDescription
outboundTransferInitiates deposit to L2
getGatewayReturns gateway for specific token
setGatewayRegisters new token gateway (admin)

L2GatewayRouter​

The L2 Gateway Router handles the Locale Network side:

FunctionDescription
finalizeInboundTransferCompletes deposit from L1
outboundTransferInitiates withdrawal to L1 or deposit to L3
getGatewayReturns gateway for specific token

L3GatewayRouter​

Each City Chain has its own gateway router:

FunctionDescription
finalizeInboundTransferCompletes deposit from L2
outboundTransferInitiates withdrawal to L2
mintLocalMints local stablecoin against bridged assets

Bridge Timelines​

Deposit Times​

RouteTypical TimeNotes
L1 → L2~10-15 minutesIncludes L1 block confirmations
L2 → L3~2-5 minutesFaster L2 block times
L1 → L3~15-20 minutesCombined journey

Withdrawal Times​

RouteTypical TimeNotes
L3 → L2~7 daysStandard optimistic rollup window
L2 → L1~7 daysStandard optimistic rollup window
L3 → L1~14 daysSequential withdrawal periods

Fast Withdrawals​

For faster withdrawals, users can utilize:

OptionTimeTrade-off
Third-Party BridgesMinutesLiquidity fees
Fast Exit ProvidersHoursService fees
Native Bridge7+ daysNo fees beyond gas

Security Model​

Trust Assumptions​

LayerSecurity Source
L1 BridgeEthereum consensus
L2 BridgeArbitrum fraud proofs
L3 BridgeLocale Network validation

Bridge Security Features​

FeatureProtection
Fraud ProofsChallenge invalid state transitions
Timelock7-day window for challenges
Multisig GuardianEmergency pause capability
Rate LimitingPrevents large-scale exploits

Bridge Operations​

Depositing to City Chain​

  1. Approve — Approve token spending on L1
  2. Deposit to L2 — Call L1GatewayRouter.outboundTransfer
  3. Wait for Confirmation — L2 processes the deposit
  4. Deposit to L3 — Call L2GatewayRouter.outboundTransfer
  5. Receive Tokens — Tokens appear on City Chain

Withdrawing from City Chain​

  1. Initiate Withdrawal — Call L3GatewayRouter.outboundTransfer
  2. Wait for L3 → L2 — ~7 day challenge period
  3. Claim on L2 — Execute withdrawal on Locale Network
  4. Initiate L2 → L1 — Call L2GatewayRouter.outboundTransfer
  5. Wait for L2 → L1 — ~7 day challenge period
  6. Claim on L1 — Execute withdrawal on Ethereum

Integration with Local Currency​

Stablecoin Minting​

Bridged assets can back local stablecoins:

Local Stablecoin Backing
RESERVE BACKING
60%
USDC
Stable backing
30%
ETH
Growth asset
10%
Local RWA
Community assets
100%+ Collateralized
Verifiable on-chain reserves

Reserve Management​

MetricTransparency
Total SupplyOn-chain, real-time
Backing RatioOn-chain, auditable
Reserve AddressPublic, verifiable
Mint/Burn EventsIndexed, queryable

Cross-City Transfers​

Via Locale Network​

For transfers between City Chains:

  1. Withdraw to L2 — Bridge assets to Locale Network
  2. Route — Locale Network coordinates transfer
  3. Deposit to Target — Bridge to destination City Chain

Optimized Routing​

Future implementations will enable:

  • Direct L3 ↔ L3 — Atomic cross-city swaps
  • Batch Processing — Reduced fees for bulk transfers
  • Liquidity Pools — Instant swaps via shared liquidity

Learn More​