Skip to content

Latest commit

 

History

History
135 lines (73 loc) · 5.81 KB

USDC Cross-Chain.md

File metadata and controls

135 lines (73 loc) · 5.81 KB

📝 Trustless Architecture Cross Chain Bridge

🚀 1. Proposed Solution for USDC Cross-Chain Integration Using Albridge (Stellar Asset Bridge).

Overview

The proposed solution leverages Allbridge, a decentralized bridging protocol, to enable seamless transfer of USDC between other blockchain networks (e.g., Ethereum, Solana, XRPL, Tezos) and Stellar’s Soroban smart contracts. Using Allbridge’s lock-mint/burn-release mechanism and validator network, the architecture ensures secure and scalable cross-chain communication while maintaining decentralization.

Alignment with Trustless Work.

Allbridge is a stellar asset bridge that connects Stellar with multiple blockchain networks. It supports various asset types, it is used by projects like Chrysalis for cross-chain functionality and it has an excellent developer support system. This makes Allbridge an excellent choice to be used with Trustless work.

This solution aligns with Trustless Work’s vision by:

  • Enabling trustless multichain capabilities.
  • Reducing complexity by leveraging Allbridge’s established infrastructure.
  • Supporting scalability and seamless integration with future blockchain ecosystems.

Core Components.

Using Allbridge Classic provides the following options:

  • lock USDC on BNB Chain and unlock abUSDC on Stellar.
  • lock cUSD on Celo and unlock acUSD on Stellar.
  • lock USDC on Ethereum and unlock aeUSDC on Stellar
  • lock USDC on Polygon and unlock apUSDC on Stellar
  • lock USDC on Solana and unlock asUSDC on Stellar

If the interest of a developer is a backward transfer, there will be a need to get abUSDC, acUSD, aeUSDC, apUSDC, and asUSDC on Stellar first, this is in case of working with native USDC on Stellar.

Lock & Mint Mechanism:

🚀 Lock & Mint Contract (Source Blockchain):

Original Asset (Chain A) -> Locked in Bridge -> Wrapped Asset (Stellar)

It's a simple transfer to the bridge muxedAccount . Attached is a link to the different bridge address. Learn more here & this too.

For other blockchains (EVM ) :
function lock(uint128 lockId, address tokenAddress, bytes32 recipient, bytes4 destination, uint256 amount)

Burn & Release Mechanism:

🚀 Burn & Release Contract (Stellar via Soroban):

Wrapped Asset (Stellar) -> Burned -> Original Asset (Chain A)

At this time of research, currently the functionality for Allbridge to send tokens to a smart contract and not an address is still under development. What Allbridge currently has is the ability to send it directly to a stellar address. To know more about how it is being done, kindly check this out.

PS:

  • It is important to note that if this is to be done, a trustline for the bridge token needs to be set for the stellar address before sending it.

To study more about sending into the soroban smart contract, this is a link to Allbridge soroban smart contract

PS: encodeEd25519PublicKey and decodeEd25519PublicKey from StellarSdk are used to encode and decode stellar addresses.

Security Considerations:

  • Multi-signature validation
  • Oracle-based verification

More Resources:

🚀 2. Proposed Solution for USDC Cross-Chain Bridge Using Circle (Stellar’s Anchor).

Overview

Circle provides cross-chain USDC transfer capabilities through their Cross-Chain Transfer Protocol (CCTP), allowing users to move USDC between supported blockchains. Circle is a steller's anchor.

How Circle Cross-Chain Works:

Transfer Process:

Source Chain (Burn) -> Circle Attestation -> Destination Chain (Mint)
  • Source Chain: User initiates transfer
  • Message Transmission: Circle's attestation service validates transfer
  • Destination Chain: USDC is minted on target network

Technical Limitation

Currently, circle only works with API endpoints, it provides several key endpoints for cross-chain transfers:

  • Transfer initiation
  • Status checking
  • Attestation verification
  • Destination minting

Resource:

Next Steps

Upon acceptance:

  • If required, I will Design architecture diagrams to illustrate blockchain-specific workflows.