Author(s): Nick Odio
Recipient(s): Ironworks BVI LTD (DBA Ferrum Network)
Asking Amount: $20K USDT/USDC/BUSD, $80K USD worth of POKT
Pocket Network has committed to launching a wPOKT product with the aim to bring liquidity from Ethereum ecosystem to and from the POKT ecosystem. The documentation for the initiative can be seen here and here. As part of this product, an inter-chain bridge is a key component to maintaining a 1:1 value between the wPOKT Erc20 token and the POKT native token. We propose to build a bridge in this vein, but in a more expansive manner with multiple chains that accurately reflects the current Multi-chain universe reality.
Bridges are an important tool that allow assets to be ported from one ecosystem to another. At present, Pocket Network Foundation has worked on bringing POKT to the Ethereum ecosystem and for good reason: it frees up liquidity, taps into a larger set of applications, and brings additional legitimacy. Pocket Network has publicly declared this strategy and even has a live wPOKT website showing its commitment to the project.
Bridges are also an additional attack vector if done incorrectly. Users must rely upon bridges to utilize interoperability between different blockchain, and this will be no different than with POKT users. There have been multiple exploits of assets due to different bridges between blockchains and being reliant on a single bridge can make a blockchain vulnerable.
Ferrum Network has built bridges between Ethereum, BSC, and Polygon blockchains. They are currently building compatibility with Moonriver, Algorand, and Avalanche as well and will be continuing to integrate more chains in the coming months. With this expertise, we would like to do with Pocket Network for the POKT token and blockchain. The bridge would be beyond Ethereum and POKT, and would include other chains such as, but not limited to BSC, Polygon, Avalanche, Algorand, Moonriver, and more. It would also complement other bridges that Pocket Network Foundation have already started working on.
Ferrum Network shares a similar ethos as Pocket Network and is deeply invested in a multi-chain universe. We plan to integrate Pocket Network service to support our own application and would like to use the distributed POKT to stake our apps. Ferrum Network and Pocket Network have been in talks to collaborate throughout the year, and we see this as a natural extension of our mission to help others become more cross-chain compatible today.
- $80k USD worth of POKT token at date of proposal passing
- The value of USD/POKT will be determined as the weighted average settled rate for the previous 7 days of completed transactions on the Thunderhead OTC market tracked here
- $20k USDT/USDC/BUSD
Grant to be paid in 2 installations:
- 20k USDT and $30k in POKT to be paid in advance
- Remaining $50k in POKT to be paid upon completion of the integration
This is the market rate for our service. Our white label solutions power crypto and traditional projects, enabling them to get their core products to market faster. The numbers speak for themselves as we handle and all time high TVL of over $100 million and >600 ETH protected against bot dumps. We are offering this service as a considerable discount given the interest we have from other projects that we have put in queue after Pocket Network.
Isn’t Pocket Network already building a bridge for wPOKT?
We are not privy to Pocket Network Foundations exact plans for a bridge in wPOKT. However, this bridge can be complementary to other bridges; doing so would only bring more resiliency to the ecosystem. Further, we believe that our bridge would be superior because of the following:
- Speed- Currently the Ferrum bridge is able to bridge assets between BSC, Ethereum, and Polygon in under 3 minutes
- Intuitiveness- The user experience is outlined in a simple 5 step process. This is an extremely simple UX and the UI is quite appealing aesthetically as well.
- Architectural Advantages- Because of the fact that Ferrum used a 2-way bridge liquidity to pool as opposed to the standard “burn and mint” type of bridge, they are able to allow POKT to have control over the token contract that gets deployed on the other side. Any token that is being withdrawn on the destination chain will be one that is authorized by the POKT team.
- Security- Ferrum’s bridge is quite a bit more secure than others on the market currently for 2 main reasons:
- Architectural Security- Due to the fact that the Ferrum Cross-Chain Token Bridge runs on a two-way bridge liquidity system as opposed to a “Lock/Burn and Mint” protocol, the bridge contract never interacts directly with the token contract. Therefore, control over the token contract is never given to an outside smart contract, which is the case with many bridges on the market today.
- Operational Security- From the OpSec point of view, the Ferrum bridge is quite a bit more secure as well. Projects are encouraged to keep only enough liquidity on the origin and destination chains to suffice for the volume that project anticipates to run through the bridge. With such a limited supply of liquidity, hackers are deterred from even attempting to exploit bridge liquidity pools as opposed to the AnySwaps and PolyNetworks on the market where millions of dollars in liquidity sits idle… basically begging to be exploited.
- Token Utility - Ferrum designs white label products that add utility to tokens from their early stages and beyond. More often than not, when a project launches, their product is not fully complete. Oftentimes, this causes investors to grow impatient and sell the token prematurely. Unique to the Ferrum token bridge, they give projects the ability to become cross-chain compatible while adding additional token utility through their bridge swap fee mechanism. They can choose to burn these fees and become a deflationary asset, treat it as a revenue stream, consider them token buybacks, or use it as a reward mechanism for their community just to name a few.
- Adoption - One of the other major challenges that non EVM compatible L1 chains face in regards to adoption is the difficulty in which interoperability is achieved. EVM compatible bridging solutions are a dime a dozen. However, the architectural differences between Ferrum’s bridge and the others on the market make bridging to non EVM compatible chains a reality.
Pocket Network Foundation already budgeted for a bridge, why ask for more funds?
This offer is for a bridge that would be outside of the strict Ethereum to Pocket blockchain specifications. The mandate of this bridge is much wider and we feel it warrants its own PEP.
This is an expensive PEP.
As outlined in the rationale section above, this is market rate. Building bridges across assets is a risky endeavor and we propose investing in a secure solution up front rather than negotiating the cost of lost funds later on.
Contingent on the speed of this proposal process, we believe we can have Pocket’s white label cross chain token bridge built by the end of Q4 on the aggressive side or sometime in Q1 on the more conservative side.
We like to give ourselves some leeway in terms of timelines since development can always have its unforeseen circumstances. Q1 of next year is very conservative. You can expect more along the lines of Q4.
We will deliver the capability for POKT to include (but not be limited to) the following chains as the destination chain:
Here are additional resources that help Pocket DAO learn about Ferrum Partners:
- An overview of the bridge in which we outline the problem/solution and our reasoning for creating it.
- An article outlining the architectural differences and OpSec measures that we take to ensure the security of the bridge.
- The link to our audit from Zokyo.
- Below is the link to one of the white label versions of the bridge that we built for a client.
Copyright and related rights waived via CC0.