Perun-X: Efficient Cross-Chain Infrastructure for ONTOCHAIN

ABOUT THE PROJECT

Perun-X: Efficient Cross-Chain Infrastructure for ONTOCHAIN

The Perun-X framework is employed to build a decentral and trustless channel network in which transactions from one ledger to another can be performed at minimal cost. In addition to this feature, the framework allows for arbitrary logic to be executed within a channel, leading to potential cross-chain contracts and more advanced applications for industry and finance. In this setting, the trust assumptions are minimized and incentives for node operators are carefully designed.

Website: https://perun.network

Use case

Motivation for the project:

Blockchain systems become more popular and diverse. Multiple systems emerge and solve different problems. However, they can barely interoperate. With the Perun-X project, PolyCrypt has made it its mission to connect decentral systems in a trustless way using our self-developed frameworks.

Generic use case description:

As an investor willing to exchange funds on-chain or as a company trying to build smart contracts to automate the interactions with several decentralized infrastructures, you require a trust-free and efficient infrastructure.

Essential functionalities:

Creating the software for users and nodes willing to gain revenue for liquidity provision or transfer funds between systems. Moreover, provably secure execution of the transactions from every angle.

How these functionalities can be integrated within the software ecosystem:

Due to the nature of the software at hand, a well-usable interface for users will be accessible with a suitable wallet (i.e. Metamask) and the DApp. Node operators will have a high degree of customizability of their setup. A complex interaction between software other than the respective blockchains will not be needed.

Gap being addressed:

Currently, there is no trustless and efficient option to perform more complex interactions across different blockchain ecosystems.

Expected benefits achieved with the novel technology building blocks:

With Perun-X as our suggested technological choice, we believe that we can realize a system that aligns both the vision of ONTOCHAIN and our vision of a decentralized, open, secure and extendable cross-chain layer.

Potential demonstration scenario:

With the help of the ecosystem, we expect to achieve exposure, allowing innovative applications to be built on top of our interoperability solution which will help us to refine it. There will be a simple demonstrator showcasing cross-chain transfers between two DLTs by utilizing a semantic API.

PROJECT OUTCOMES

Users can move funds from one chain to another, performing an atomic swap between their currencies. They are then enabled to participate in the network’s activities.

Demo:

Repositories:

Fabric Backend
- https://github.com/perun-network/perun-fabric (Currently private)
Go-Perun Multi-Chain
- POC: https://github.com/perun-network/go-perun/tree/draft/multi-backend
- Multi-ledger PR in Perun core: https://github.com/hyperledger-labs/go-perun/pull/337
- Multi-ledger PR in Perun Ethereum contracts: https://github.com/hyperledger-labs/perun-eth-contracts/pull/29
- Multi-ledger branch in Perun Ethereum backend (work in progress): https://github.com/perun-network/perun-eth-backend/tree/multi-backend
Perun Swap Web Demo is closed source at the moment.

Documentation:

More details:

Customer engagement

Our DApp is used as an interactive interface. There, the customer gets to customize as much as they like about their swap. They can offboard this DApp on the other side of the cross-chain transfer. Node operators use a script to install the Perun-X client.

Monetization

Fee-based model

Users are charged a fee for a cross-chain transfer and liquidity and infrastructure providers can earn their individual share of that fee.

Liquidity providers can specify their own fee terms.

Scenario

Scenario 1 - How it works for users

Let’s assume you are the user and are willing to partake in PiSwap’s prediction market for their favorite Ethereum-based NFT. But their funds are mainly on the iExec Bellecour chain.

Step 1: The user selects his source currency and the wanted amount.
Step 2: The user selects the desired currency and amount.
Step 3: Complete the trade.

Scenario 2 - How it works for liquidity providers

Let’s assume you are the liquidity provider. It is your goal to earn revenue by enabling decentralized infrastructure.

Step 1: You receive a request for a swap of tokens that you are providing.
Step 2: Your API / algorithm / predefined logic sends a proposal containing swap conditions

Semantic content and content transfer

Cross-chain transactions can include particular tokens as well as conditional transfers (payment for a piece of information).

For the cross-chain transactions, the following content is required:

Own wallet with funds
Desired amount and cryptocurrency

Ownership

The application will be owned by the network of nodes and the DApp (and therefore also its creator, PolyCrypt). The user owns their funds for the entirety of the process.

Existing similar solutions/services

Similar steps can be performed using a centralized exchange but these require KYC and AML, making these steps far less efficient and confidential. Moreover, the possibility exists to use HTLCs. This requires a counterparty. One of our possible competitors could be AnySwap Router, which enables transfers of value across chains using a protocol that employs a sidechain.

Quality proofs

The user is able to adjudicate if they believe they have been scammed in any way, moving their transaction back to the first layer of the respective decentralized ecosystem.