Why it works
Gravity bridge chain will act as neutral ethereum to cosmos bridge. Through IBC(Interblockchain communication), many different cosmos based projects can connect and use the bridge to access ERC20 assets, like dai or usdc, without having to operate the gravity orchestrator on their own chain.
Gravity will be able to bring ERC20 assets from Ethereum into Cosmos, as well as Cosmos assets to Ethereum ERC20 representations. ATOM, and any other asset in the Cosmos ecosystem, will be able to trade on Uniswap and other Ethereum AMMs, and interact with Ethereum DeFi like any ERC20 token.
Cosmos, Ethereum, and Gravity
Gravity is a secure and highly efficient bridge between EVM and Cosmos SDK-based blockchains. At a high level, Gravity enables token transfers from Ethereum to the Cosmos Hub and back again, by locking up tokens on the Ethereum side and minting equivalent tokens on the Cosmos side.
Gravity is completely non-custodial. Control of the bridge mirrors the active validator set on the Cosmos SDK-based chain, and validator stake on Cosmos can be slashed for misbehavior involving the Gravity bridge.
The Gravity Ethereum contract is highly optimized, utilizing batches to dramatically reduce the cost of Cosmos → Ethereum transfers. Sending funds from Cosmos back to Ethereum can be up to 50% less costly than a normal ERC20 send.