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With the completed message plumbing for EVM <-> Cardano (#45 and #28),
the next logical step is to utilize the connectivity of the EVM and Cardano for the Khalani protocol.
USDC on Cardano
We'll start with the design and implementation of a USDC token on Cardano, supporting the following user stories:
"As a Cardano user, I want to bridge my Ethereum USDC to Cardano USDC"
"As a Cardano user, I want to exit my Cardano USDC tokens to Polygon USDT."
USDC token is a mint/burn token residing on Cardano:
When user bridges USDC from chain xyz, the USDC.xyz token is first traded to klnUSDC via CCLP pool (USDC.xyz/klnUSDC) or is aggregated with Liquidity Aggregator (USDC.eth -> klnUSDC). Then klnUSDC token is locked on Khalani chain, and the same amount of USDC token is minted on Cardano.
When user exits Cardano USDC to another chain, USDC on Cardano gets burned, klnUSDC token on Khalani chain gets unlocked, then klnUSDC is traded to any chain's USDC.xyz via CCLP and CALP pools. Then USDC.xyz is burned and the same amount of USDC tokens is minted on the target chain.
The Khalani protocol complexity resides on the Khalani chain. The end chains (Ethereum, Arbitrum, ... Cardano) only have "asset reserves" (to lock/burn or unlock/mint tokens). The actionable trading "payload" (swaps to be executed) is encoded to a message dispatched from an end chain to the Khalani chain via Khalani SDK.
Overview
With the completed message plumbing for EVM <-> Cardano (#45 and #28),
the next logical step is to utilize the connectivity of the EVM and Cardano for the Khalani protocol.
USDC on Cardano
We'll start with the design and implementation of a
USDC
token on Cardano, supporting the following user stories:USDC token is a mint/burn token residing on Cardano:
USDC.xyz
token is first traded toklnUSDC
via CCLP pool (USDC.xyz/klnUSDC
) or is aggregated with Liquidity Aggregator (USDC.eth
->klnUSDC
). ThenklnUSDC
token is locked on Khalani chain, and the same amount ofUSDC
token is minted on Cardano.USDC
to another chain,USDC
on Cardano gets burned,klnUSDC
token on Khalani chain gets unlocked, thenklnUSDC
is traded to any chain'sUSDC.xyz
via CCLP and CALP pools. ThenUSDC.xyz
is burned and the same amount ofUSDC
tokens is minted on the target chain.The Khalani protocol complexity resides on the Khalani chain. The end chains (Ethereum, Arbitrum, ... Cardano) only have "asset reserves" (to lock/burn or unlock/mint tokens). The actionable trading "payload" (swaps to be executed) is encoded to a message dispatched from an end chain to the Khalani chain via Khalani SDK.
Breakdown
Technical debt EVM <-> Cardano
console.log
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