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ETH <> BTC DEX on Layer 2 with Uniswap-like price discovery

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Community Scalability

MATCH ROUND 6

1 DAI

MATCH ESTIMATE

ROUND

356 DAI
2 contributors

Description

{"ops":[{"attributes":{"background":"transparent","color":"#000000"},"insert":"Grant goal:"},{"insert":"\n\n"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"Create a "},{"attributes":{"background":"transparent","color":"#000000","link":"https://twitter.com/VitalikButerin/status/1242553658195271681"},"insert":"“trustless, serverless, maximally Uniswap-like UX ETH<->BTC decentralized exchange”"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"."},{"insert":"\n\n"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"We will facilitate payments between the 2 networks with "},{"attributes":{"background":"transparent","color":"#000000","link":"https://github.com/interledger-rs/interledger-rs/"},"insert":"Interledger"},{"attributes":{"background":"transparent","color":"#000000"},"insert":", using "},{"attributes":{"background":"transparent","color":"#000000","link":"https://github.com/lightningnetwork/lnd"},"insert":"Lightning"},{"attributes":{"background":"transparent","color":"#000000"},"insert":" and "},{"attributes":{"background":"transparent","color":"#000000","link":"https://github.com/ConnextProject/indra"},"insert":"Connext"},{"attributes":{"background":"transparent","color":"#000000"},"insert":" for BTC and ETH settlement respectively on Layer 2, while leveraging constant product formulas (like Uniswap's x*y = k) for price discovery."},{"insert":"\n\n"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"Details:"},{"insert":"\n\n"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"Interledger is a chain-agnostic interoperability protocol model after the Internet stack. It can be thought of as a network of bilateral credit agreements. Trust is minimized by setting credit limits to low amounts. Settlement is cleanly separated from the credit network and can be either over Layer 2, a Layer 1, or even ACH. We prefer to use Layer 2 because it gives us high performance and trust guarantees. The settlement architecture is explained in depth "},{"attributes":{"background":"transparent","color":"#000000","link":"https://interledger.org/rfcs/0038-settlement-engines/"},"insert":"here"},{"attributes":{"background":"transparent","color":"#000000"},"insert":" "},{"insert":"\n\n"},{"attributes":{"background":"transparent","color":"#000000"},"insert":"The grantee is specialized in Layer 2 solutions and "},{"attributes":{"background":"transparent","color":"#000000","link":"https://github.com/interledger-rs/interledger-rs/"},"insert":"has written a large part of the Interledger protocol’s implementation in Rust"},{"insert":" as well as settlement in "},{"attributes":{"link":"https://github.com/interledger-rs/settlement-engines"},"insert":"ETH and ERC20 tokens"},{"attributes":{"background":"transparent","color":"#000000"},"insert":". "},{"insert":"\n\nThis grant will be used to create the following:\nInterledger Settlement over Lightning, so that we can settle with Bitcoin"},{"attributes":{"list":"bullet"},"insert":"\n"},{"insert":"Interledger Settlement over Connext, so that we can settle with Ether or any ERC20 token"},{"attributes":{"list":"bullet"},"insert":"\n"},{"insert":"Adjust the "},{"attributes":{"link":"https://github.com/interledger-rs/interledger-rs/tree/master/crates/interledger-rates"},"insert":"price discovery mechanism"},{"insert":" of an Interledger node to work with a constant product formula, similar to Uniswap, instead of an external API"},{"attributes":{"list":"bullet"},"insert":"\n"},{"insert":"\n"}]}

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