Abstract

Inverter Network proposes a long-term partnership with a two-phase roadmap to innovate on Connext to drive up its interoperability protocol’s adoption with a positive-sum incentive design.

Motivation & Rationale

Our objectives with this proposal are three-fold, in short:

1. Integrate Connext's Cross Chain technology as a functionality to Inverter's Module Library.

• Enable every application deploying on Inverter to go cross chain on day 1.

1. Deploy a cross-chain staking workflow using Connext's Cross Chain module integrated into the Inverter module library.

• Enable xERC20 technology to facilitate rapid cross-chain implementations, including cross-chain staking, cross-chain airdrops, and bolstering initiatives for public goods.
• Enable cross chain staking rewards to be distributed based on KPI metrics that are on and off-chain, utilizing oStake.

1. As a proof of concept, partner with an LSD protocol to build Inverter's Public Goods Staking plugin.

• Rather than donating current funds to support a project, users can allocate a percentage of their future earnings to the projects they want to support.

Specifications

Inverter Network is formed with a vision that tokens, from the way they are created to the larger system they are connected to, can make modular money and programmable institutions possible on the blockchain by enabling issuing and distributing tokens in a programmable and dynamic way.

To realize its vision, Inverter built three novel technologies:

Inverter Protocol

Inverter protocol v.1 was designed as a modular infrastructure to ensure the extendability and upgradability of protocol capabilities, as well as the dynamic operability of embedded business logic and token economies via customizable admin panels to offer a comprehensive back-office solution.

This allows for the configuring and conditioning of token issuance and distribution logic without the need for custom development, thereby enabling their protocol stack to be operational right from the start:

1. Customizable Admin Panel Customizable Admin Panel provides an interface for Inverter’s protocol stack to enable a streamlined and no-code configuration, deployment, and operation of token economies via Inverter workflows and a set of out-of-the-box integrated solutions.

2. Drag & Drop Functionalities Inverter protocol is designed to enable drag and drop smart contract functionalities, such as staking, streaming, KYC/B services, oracle services, and so on to build new protocol technologies without additional manual development.

3. Module Registry On-chain registry of reusable, upgradable, and interoperable modules that can be assembled into custom workflows to perform a specific function and can be integrated or removed without affecting the system’s overall integrity.

4. Audited with a Security Standard Inverter Security Standard is a set of security measures that range from extensive testing to security reviews with established auditing partners for maintaining the Inverter Module registry, thus allowing all the projects utilizing Inverter to build on quality-assured smart contracts without needing to finance an audit themselves.

Inverter poAMM

On top of Inverter protocol, Inverter introduced a novel poAMM technology that enables projects to deploy their token economy with conditional issuance and extendible utility management, utilizing a user-friendly, no-code issuance panel to easily set up and customize their token economy.

Inverter’s poAMM technology enables projects to:

1. Capture Trading Fees Primary issuance markets enable projects to capture the trading fees on their exchange volume.

2. Generate Yield with Idle Treasury Reserve Assets A percentage of the idle reserve that is sitting in the primary issuance market can be utilized across DeFi to generate yield or offer utility, while being able to be called back to the reserve when required.

3. Capture Arbitrage Opportunities via Inverter’s piMEV Arbitrage Bot Library The arbitrage bot will arbitrage the price differences between the secondary and primary markets, generating a new source of recurring revenue for the token from the price volatility.

Steps to Implement

Phase 1: Module Development & Integrations

1. Integrating Connext as an Inverter Module

Objective

1. To enable Connext as the Cross Chain module for all Inverter workflows

Overview

Inverter will develop a cross-chain module to enable new workflows that can support cross-chain operations such as cross-chain payments, staking, or airdrops. This will ​​enable new design space for experimenting with novel cross-chain mechanisms and token models for projects as well as expanding existing mechanisms to have cross-chain capabilities more efficiently than the current Chain Abstraction Kit.

2. Cross Chain Staking Workflow Configuration

Objective

1. Making it easy for developers to integrate cross-chain staking functionality into their dApps

Overview

Cross Chain Staking will significantly enhance the DeFi ecosystem by boosting interoperability, diversifying asset utilization, and improving liquidity across multiple chains by enabling developers to build new DeFi products and services. It allows for accessing assets and yields without the limitations of one chain while simplifying the user experience by abstracting the complexities and limitations of manually bridging assets across chains.

3. Configuring oracleStake Workflow with Connext Cross-Chain Module

Objective

1. To enable cross-chain staking for the oStake Workflow.
2. Enable users to participate in staking-based incentive mechanisms from any EVM-compatible chain and Layer 2 solutions

Overview

oStake (oracleStake) is a KPI-based staking contract that dynamically adjusts staking rewards according to set KPIs to create more dynamic, engaging, and efficient incentive mechanisms while still maintaining the UX simplicity of traditional staking contracts. With the integration of UMA Oracles, any on/off-chain metric can be verified as long as it is publicly accessible.

Phase 2: PGS Development

What is Public Goods Staking (PGS)?

Essentially, rather than donating current funds to support a project, users can allocate a percentage of their future staking earnings to the projects they want to support.

How does it work?

1. Unicef integrates our widget into its website and easily sets up a wallet just with an email login.
2. Supporters who may not have liquid assets to donate outright can instead support the initiative by staking their ETH through the project’s website.
3. This is achieved by connecting their wallet via the widget and selecting the percentage of their staking rewards to donate to the project.
4. The widget automatically stakes the ETH through a chosen ETH staking platform (such as Lido or Stader), seamlessly integrating this process.
5. Later, based on the percentage the user has chosen, the staking rewards will be shared with Unicef.

This framework enables individuals to earn while supporting others, all through a very basic process.

1. Deploying PGS (Public Goods Staking) Workflow with Connext Cross-Chain Module

Objective:

1. To integrate Connext Cross-Chain Module into the PGS Workflow, enabling users to support NGOs by staking ETH across different blockchains without manual bridging or token transfers.
2. Users can seamlessly stake ETH to NGOs from any EVM compatible chain and L2 solutions.
3. Enable the staking process to work smoothly with integrated partners such as Stader, Lido, and Rocketpool.

Overview

Please check forum post.

2. Integrate PGS Workflow to a UI Plugin

Objective

1. To implement a “one-click” staking feature that allows users to stake their tokens to a chosen NGO or project without navigating through multiple steps.
2. Reducing the whole process of “stake to support” to less than 30 seconds.
3. Enable the NGOs and projects to have branded experiences with white-label widgets that they can easily integrate to their websites.

Overview

Please check forum post

Timeline & Overall Cost

Phase 1 Milestones

Milestone 1: Integrating Connext as an Inverter Module

Timeline: 1 Month

Budget: 45,000 $NEXT

• Technical Specifications Document for the Cross-Chain Module
• Development of Cross Chain Module
• Security Review of the Cross Chain Module

Milestone 2: Cross Chain Staking Workflow Configuration

Timeline: 1 Month

Budget: 45,000 $NEXT

• Configuration of the Cross Chain Staking Workflow
• Integration of Cross Chain Staking Workflow into the Starter SDK

Milestone 3: Public Audit Competition

Timeline: 2 Weeks

Budget: 90,000 $NEXT

• Open a public bounty competition for open source hackers on Hats Finance

Milestone 4: Configuring oracleStake Workflow with Connext Cross-Chain Module

Timeline: 1 Month

Budget: 20,000 $NEXT

• Integration of Cross Chain Module into oStake Workflow

Phase 2 Milestones

Milestone 1: Deploying PGS Workflow with Connext Cross-Chain Module

Timeline: 2 Weeks

Budget: 20,000 $NEXT

• Development of PGS workflow
• Integration of Cross Chain Module into it

Milestone 2: Integrate PGS Workflow to a UI plugin

Timeline: 2 Weeks

Budget: 20,000 $NEXT

• Building a user-friendly widget for the PGS workflow

*Milestones can proceed concurrently.

Cost Breakdown

Please check forum post

Payments will be per milestone. For the public audit competition, it will be upon initiation of the milestone as we plan to use that budget to organize the event.

Multisig addy: 0xAe5A7B344D2D85991ffD9e845e90765D14d0FF76

Signers:

Ministro: 0x1723cA992E66ef02a541ee09503F21Ef4029271A

Stefan: 0xc1Fff07cB5A7b4F65a1Fde2cb881Ba5aeFFb0c29

Inverter team: 0x4282A4Fc7Cf468b6128c9aCBfdE7a98F3836A107