When a user intends to perform a cross-chain bridging operation, the cross-chain protocol first provides the user with a quote. After the user confirms and accepts the quote, they initiate a transfer to the cross-chain protocol. The cross-chain protocol then verifies the transaction. Once verified, the corresponding funds are sent to the user’s account on the target chain. To ensure smooth execution of various transactions, the cross-chain protocol maintains a certain balance of funds across all involved blockchain networks and regularly performs rebalancing operations to ensure adequate liquidity on each chain. For the cross-chain protocol, direct transfers are secure. This is because the cross-chain protocol deposits collateral into an escrow account. If the cross-chain protocol fails to fulfil its obligations, users can withdraw the collateral from the escrow account to protect their interests.