FIO Token and Domain NFT wrapping
- Pawel Mastalerz
- Emily Mader
- Eric Butz
In Progress
This project is in progress, see:
Document below for current scope and requirements
FIP-17 for FIO Chain modifications: fips/fip-0017.md at master ยท fioprotocol/fips
Technical progress: Token Wrapping Project Plan
Go-to-market plan: FIO Token/Domain wrapping go-to-market
Discussion: Discord token-wrapping channel
Committee
@Pawel Mastalerz @Luke Stokes @Casey Gardiner @Todd G @EOSUSA Michael @Michael Yeates
Overview
Wrapping is a process of taking a token from one chain and making it available on another chain. For example a wrapped Bitcoin is an ERC-20 representation of a Bitcoin token on the Ethereum chain.
It is believed that the ability to wrap FIO Tokens and Domain NFTs will be beneficial to the FIO Community. It will open up new use cases for FIO Tokens and Domains such as:
Enable FIO Domains to be traded on NFT trading sites such as Open Sea as ERC-721s.
Enable FIO tokens to be used in a rapidly growing Defi Ecosystem such as Uniswap which rewards token holders for providing liquidity to decentralized exchanges.
Wrapping is typically accomplished in the following way:
Alice transfers a token on Chain C to a designated address which is controlled by a centralized or decentralized Oracle O.
Oracle O, then issues a new token on Chain D and transfers it to an address designated by Alice.
Token on Chain C is now โlockedโ and not usable on Chain C until it is redeemed.
When Alice or new owner wants to redeem the token, they transfer it on Chain D to a designated address which is controlled by Oracle O.
Oracle O, then โunlocksโ the token on Chain C and transfers it to a designated address.
The objective of this project is to:
Build into FIO Protocol ability to โlockโ tokens and designate target blockchain and address. This would allow anyone to build oracle solutions for any blockchain
Build or engage an oracle solution which will monitor FIO and Ethereum, enabling wrapped FIO Tokens and Domain NFTs on Ethereum.
Sample flow diagram
Solution Specification
FIO Chain wrapping functionality
System smart contract on the FIO Chain.
It will be owned by eosio (controlled by BPs) who will register and unregister oracles using regoracle and unregoracle actions.
Users will
SEND: User will send FIO Domain using wrapdomain or FIO Tokens using wraptokens actions and pay Oracles fee they obtained using get_oracle_fees.
Oracles will:
Specify fees (in FIO) they want to be paid by user for wrapping services using setoraclefee action. These fees should cover gas fees on another chain.
TRANSFER: Once Oracles detect that a user on another chain wants to unwrap FIO Domain or FIO Tokens, they will submit their observation using unwrapdomain or unwraptokens actions. Once all Oracles have submitted their observation, the FIO Domain or FIO Tokens will be transferred.
See FIP-17 for details.
Ethereum Chain wrapping functionality
Smart contract on:
FIO Token wrapping
Ethereum L1 Chain
FIO Domain Wrapping
Polygon, Ethereum L2 Chain.
Due to high fees on Ethereum L1, the FIO Domain wrapping will be deployed on Polygon exclusively.
Custodians
The smart contract owner key will be destroyed after deployment
Starting set of 10 custodian keys will be hard-coded into contract
Custodians will be able to:
Register Oracle
Request
Ethereum public address
Processing
Oracle is added after 2/3 + 1 custodians have registered the same public address
Unregister Oracle
Request
Ethereum public address
Processing
Oracle is removed after 2/3 + 1 custodians have unregistered the same public address
Register Custodian
Request
Ethereum public address
Processing
Custodian is added after 2/3 + 1 custodians have registered the same public address
Unregister Custodian
Request
Ethereum public address
Processing
Custodian is removed after 2/3 + 1 custodians have unregistered the same public address
Oracles will
MINT: Once Oracles detect that a user on FIO Chain wants to wrap FIO Domain or FIO Tokens, they will submit their observation to this Ethereum smart contract. Once all Oracles have submitted their observation, the wrapped FIO Domain or wrapped FIO Tokens will be minted and transferred to designated Ethereum public address.
Oracle can trigger minting of wrapped tokens
FIO tokens: mint WFIO ERC-20 token
FIO Domains: mint ERC-721 token
Must be compatible with OpenSeas
BURN: Once Oracles detect that a FIO Domain has been burned on the FIO Chain, they will submit their observation to this Ethereum smart contract. Once all Oracles have submitted their observation, the wrapped FIO Domain will be burned.
Oracle can trigger burning of ERC-721 tokens
Users will
SEND: Send ERC-721 FIO Domain or WFIO ERC-20 to this Ethereum smart contract without additional fee other than Ethereum gas passing:
ERC-721
ERC-721 Domain - previously minted on Ethereum
FIO Address where FIO Domain should be delivered on FIO Chain
Basic regex validation should be enforced
ERC-20
Amount of WFIO - previously minted on Ethereum
FIO Address where FIO Tokens should be delivered on FIO Chain
Basic regex validation should be enforced
Automatic generation of ERC-721 metadata
ERC-721 requires that a url to a json file be provided.
The metadata should be served by a service hosted by the Foundation, which will dynamically generate it based on the query parameter in the url, e.g. https://metadata.fioprotocol.io/domainnft/sampledomain.json
Response meta data:
{
"name": "FIO Domain: sampledomain",
"description": "Owners of FIO Domains can create unlimited number of human-readable FIO Addresses to be used to receive or request crypto using FIO Protocol.",
"image": "https://metadata.fioprotocol.io/domainnft/sampledomain.svg"
}Automatic generation of NFT image
The NFT image should be dynamically generate it based on the query parameter in the url, e.g. https://metadata.fioprotocol.io/domainnft/sampledomain.json
Response image will include the base image with text overlay as follows:
TBD
Oracle functionality
Customized solution based on Alien Teleport developed by @Michael Yeates.
Oracle code will be ran by designated FIO Chain BPs with access to:
Oracle will:
FIO Chain
Monitor specific account by inspecting every block and looking for wrapdomain or wraptokens action
TRANSFER FIO Domains or FIO Tokens
Ethereum Chain
Monitor Ethereum smart contract for inbound transfers of ERC-721s or ERC-20s
MINT ERC-721 or ERC-20
Possible exceptions (exception handling should not be automated at this stage):
FIO Chain
Chain passed to wrapdomain or wraptokens actions is not Ethereum (this restriction is not enforced on the FIO Chain level to allow for wrapping chain expansion without deployment of code)
Oracles can trigger unwrapdomain or unwraptokens actions to originating address
Public address passed to wrapdomain or wraptokens actions is not a valid Ethereum address (this restriction is not enforced on the FIO Chain level to allow for wrapping chain expansion without deployment of code)
Oracles can trigger unwrapdomain or unwraptokens actions to originating address
Ethereum Chain
FIO Address passed in with ERC-20 is not valid or does not exist
Oracles can trigger a refund deducting amount to cover gas
FIO Address passed in with ERC-721 is not valid or does not exist
Oracle can at their discretion trigger a refund or manually resolve the issue with sender
Other options considered
FIO Chain wrapping functionality | Oracle functionality | Ethereum Chain wrapping functionality |
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