Title: Proposal for Integrating Magic Internet Money (MIM) into Cosmos and Polkadot
This proposal outlines a strategic plan for integrating Magic Internet Money (MIM) into the Cosmos and Polkadot ecosystems, leveraging their unique interoperability features to expand MIM’s utility and accessibility. By making MIM cross-chain compatible, we aim to enhance liquidity, user base, and integration possibilities with various DeFi protocols operating within these ecosystems.
Objective: To enable MIM’s integration into the Cosmos and Polkadot networks, allowing it to be used seamlessly across different blockchains within these ecosystems. This move is aimed at capitalizing on the growing DeFi sector in these networks, increasing the adoption of MIM, and offering users broader capabilities in terms of collateralization options and liquidity.
- Cosmos and Polkadot are leading platforms in promoting blockchain interoperability and scalability.
- Expanding into these ecosystems will expose MIM to a wider range of DeFi applications and users.
- Increased liquidity and utility for MIM as users across multiple chains can access and use the stablecoin.
- Utilize Composable Finance’s Picasso Network, a hub on the Polkadot ecosystem, as the primary platform for cross-chain integration. Picasso’s unique infrastructure is designed to facilitate seamless interoperability and application-specific blockchains.
- Implement robust security measures, including comprehensive testing and audits, in collaboration with Composable’s security teams to ensure the safe cross-chain transfer and use of MIM.
- Convert MIM into ICS token standard and get whitelisted functionalities across DeFi protocols
Partnerships and Collaboration:
- Partner with Composable Finance to leverage their expertise and infrastructure for bridging assets across various blockchains, including the integration of MIM into the Picasso network.
- Engage with key DeFi protocols already present on Composable’s Picasso network for initial liquidity provision, integration support, and to create synergistic relationships that enhance the utility of MIM across ecosystems.
- Collaborate with wallet providers and user interface platforms compatible with the Picasso network to ensure that users can smoothly access and manage their wMIM tokens.
Risks and Mitigations:
- Assess and address potential smart contract risks, cross-chain communication errors, and liquidity concerns.
- Plan for ongoing monitoring and support to adapt to changes in Cosmos, Polkadot, or Abracadabra ecosystems.
Integrating MIM into the Cosmos and Polkadot ecosystems presents an opportunity to significantly broaden its usability and enhance its position in the DeFi market. By carefully planning and executing this cross-chain expansion, we can ensure that MIM remains a competitive and valuable stablecoin in the rapidly evolving DeFi landscape. We invite all stakeholders, including the Abracadabra community, Cosmos and Polkadot developers, and potential partners, to collaborate on this exciting venture to drive forward the future of decentralized finance.
Composable IBC is designed to be trust-minimized and does not rely on third-party intermediaries or centralized control. This eliminates the potential risks associated with trust assumptions and enhances the overall security of cross-ecosystem bridging. Users can confidently transfer assets and data between different blockchains while maintaining control and security. However the potential risks always linger and for an IBC bridge to be compromised there’d have to be a 51% on either of the connected chains. Fortunately, Cosmos, Ethereum, and Polkadot have huge staked budgets that fortify their security.
Detailed IBC 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:
i) 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.
ii) 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.
iii) 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.
iv) 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.
Composable was the first company to connect a non Cosmos chain through IBC. This was through a custom mechanism to connect Polkadot and Cosmos. Our goal is to bring IBC everywhere, hence connecting to all chains. Connecting to Ethereum will be a major push in the terms of secure interoperability as we are moving away from centralized solutions and empowering users.