zkBridge NEP-1: Integrate Lorenzo with zkBridge

Category: Technical Proposal

I. Abstract:

Polyhedra currently supports integration of zkBridge with a number of third party blockchains and ecosystems such as AltLayer, Alchemy Bridge, Arbitrum, and others. Polyhedra Network’s zkBridge represents a significant advancement in the blockchain industry, offering a trustless, efficient, and secure interoperability protocol across different Layer-1 and Layer-2 networks. Central to its security model is the integration of zero-knowledge proofs, which offer robust security that is not dependent on external factors and significantly reduce the complexities and costs associated with on-chain verifications. Other assets could be supported and utilized to grow the utility of the network.

II. Background:

On April 4, 2023, zkBridge launched on ten layer-1 and layer-2 blockchain networks including Polygon, Ethereum, Binance Smart Chain, and Cosmos. zkBridge is the first trustless, efficient, secure, and universal cross-chain bridge with advanced zero-knowledge proof technology. zkBridge uses zkSNARKs to enable a prover to efficiently convince the receiver chain that a certain state transition happened on the sender chain. zkBridge consists of a block header relay network and an updater contract. zkBridge uses a 2-layer recursive proof system to achieve fast proof generation and low on-chain proof verification cost to support cross-chain applications. As of June 2024, zkBridge has supported more than 30 layer-1 and layer-2 networks, and successfully verified more than 20 million cross-chain transactions.

III. Rationale:

zkBridge provides users with a range of options and greater asset diversity to bridge across various L1s and L2s. By expanding the supported blockchains, it allows more users worldwide to be able to access the functionalities and features of, and participate in the growth and development of, the Polyhedra Network. Candidates for future integrations will be selected by the community. Based on feedback received from ecosystem members, the community will consider multiple criteria, including:

1. Global reach, recognition from major industry players, and community interest
2. Focus on adhering to regulatory standards and ensuring security,
3. Interest in zero-knowledge proofs
4. Potential for enhancing the network functionality, applications, and user interactions to set a new standard for secure, efficient, and user-friendly cross-chain transactions
5. If this would foster greater participation and collaboration within the blockchain ecosystem
6. Enhanced flexibility and efficiency, decentralization and system integrity across these blockchain networks.

IV. Proposal:

This is a proposal to integrate the following project with zkBridge:

Project Name: Lorenzo

Reasons to pursue integration include:

1. Lorenzo has established itself as a leader in the Bitcoin ecosystem
2. Lorenzo has a growing ecosystem of applications that could benefit from interoperability
3. Lorenzo has expressed significant interest in zero-knowledge and the advantages it brings to interoperability
4. Lorenzo has a strong and growing community that would be additive to the Polyhedra community

Description: Lorenzo Protocol is building the first Bitcoin liquidity finance layer, complete with the world’s first Bitcoin liquid restaking protocol, to achieve the goal of becoming the premier platform for yield-bearing token issuance, trading, and settlement through Babylon(https://babylonchain.io/). On its platform, Lorenzo connects Bitcoin stakers—regardless of the size of their holdings—with top-tier projects needing liquidity and security, thus unlocking the liquidity of staked assets and capturing world-class yields for stakers. It offers streamlined Bitcoin management and user protections such as staking insurance, node operator credit scores, anti-slashing mechanisms, and validator permits.

This foundation facilitates seamless integration and interoperability for Bitcoin across the Web3 ecosystem, providing a pathway for significant liquidity and yield generation across networks. By issuing liquid principal tokens (LPTs) and yield accruing tokens (YATs), Lorenzo not only enhances liquidity but also establishes a foundation for a DeFi ecosystem built on these token standards. This enables the creation of more complex DeFi products utilizing stBTC (Lorenzo’s native LPT) and YATs, further exploring the possibilities of Bitcoin finance.

Project’s Social Media: X (Twitter): https://twitter.com/LorenzoProtocol Medium: https://medium.com/@lorenzoprotocol Telegram: @lorenzoprotocol Discord: https://discord.com/invite/fybK7C4gMH

V. Threshold to Approve:

1. More than 50,000 of total Staking Power (SP) cast as votes, and
2. More Yes votes than No votes.