Connext vs. Simple Atomic Swaps
Typically, htlcs is utilized for atomic swaps which are a model for crosschain swapping. In this framework, the funds between two parties on different chains are atomically locked and unlocked.
The Connext protocol is more suited for generalized crosschain transactions rather than being utilized for the exchange of assets. This introduces tradeoffs for generality as well as high uptime/reliability, at the cost of reaching the absolute best price.
Connext’s core locking mechanism is borrowed from atomic swaps while extending the principle behind it to arbitrary contract transfers and interactions
The utilized pricing mechanism is an AMM-based route auction by means of which liquidity is sourced from a network of routers
Free options in the system are mitigated by explicitly providing only 1:1 asset interactions across blockchains (for example USDC on ETH to USDC on Polygon)
External mechanisms are added to penalize LPs trying to grief users