[Temp Check] Make crvUSD Cross Chain into Cosmos
This proposal seeks feedback on potentially making crvUSD to be available within the Cosmos ecosystem. The goal is to expand the utility of crvUSD and tap into new markets and opportunities, enhancing its presence and adoption in the broader DeFi landscape.
The Cosmos ecosystem has shown significant growth and potential in the DeFi sector. Introducing crvUSD to this ecosystem will not only benefit crvUSD holders by providing new opportunities for usage and yield generation but also aid in the development and maturation of the Cosmos DeFi ecosystem. This integration will further strengthen the ties between Ethereum and Cosmos, showcasing the power and necessity of interoperability in the DeFi space.
Utilize Composable Finance’s infrastructure to bridge a certain amount of crvUSD from Ethereum to Cosmos.
Work with key Cosmos DeFi protocols such as Osmosis and Astroport to integrate crvUSD into their platforms, ensuring seamless functionality and utility.
Implement monitoring and management strategies to oversee the performance and integration of crvUSD within the Cosmos ecosystem.
Collaborate with the Cosmos community for feedback and continuous improvement of crvUSD integration.
IBC Technical Overview:
The Inter-Blockchain Communication Protocol (IBC) is a protocol designed to facilitate the authentication and transportation of data between two blockchains. It operates with a minimal set of functions defined in the Interchain Standards (ICS). Importantly, IBC does not limit the network topology or consensus algorithm of the blockchains it connects, making it versatile and adaptable for use with a wide range of blockchains and state machines. The following features highlight key benefits to utilizing IBC:
Permissionless and Secure: IBC offers a permissionless way to relay data packets between blockchains, unlike most trusted bridging technologies. The security of IBC relies on the security of the participating chains.
Modularity and Composability: IBC separates the transport layer (TAO) responsible for secure connections and data authentication from the application layer, which defines how data packets are packaged and interpreted. This modularity enables composability and the ability to design applications on top of IBC.
Light Clients and Relayers: IBC relies on light clients and relayers to ensure the validity of cross-chain transactions. Relayers are responsible for scanning the state of participating chains, constructing datagrams, and executing them on the receiving chain. Light clients efficiently verify the relevant state of the counterparty blockchain.
Security: IBC’s security is based on trusting the consensus of the connected chains. It also implements fault isolation mechanisms to limit damage in case of malicious behavior.
Our vision is for the Composable ecosystem to become a transaction-processing locale for chain-agnostic transactions. To facilitate such transactions, we are deploying new features and connections on our Cosmos SDK Chain.
Composable’s Cosmos SDK chain is at the core of our extension of the IBC protocol for trust-minimized cross-chain communication. The IBC protocol previously was limited to trust-minimized bridging and message passing between Cosmos SDK chains. We are the first to extend IBC to other ecosystems, with the Composable IBC connection between Polkadot and Cosmos going live on June 29, 2023. At present, Composable’s bridge connects Polkadot, Kusama, Cosmos, and Ethereum (the lattermost of which is in testnet). Moreover, we are dedicated to building more IBC solutions and exploring many other ecosystems.
Voting for this proposal will:
Enhance the utility and demand for crvUSD across different blockchain ecosystems.
Open up new avenues for yield generation and liquidity provision for crvUSD holders.
Foster stronger collaboration and interoperability between Ethereum and Cosmos.
Contribute to the growth and diversity of the Cosmos DeFi ecosystem.
Possible reasons for voting against this proposal may include concerns about:
The risks associated with cross-chain bridging and asset security.
The potential impact on the liquidity and stability of crvUSD on its native Ethereum platform.
The readiness of the Cosmos ecosystem to integrate and efficiently utilize crvUSD.