ErgoPlatform $ERG <-> $1ERG xClaim BRIDGE
An Ergo Foundation x Harmony Core-Team Limited Partnership centered around creating support for an Ergo Blockchain Bridge to bring $ERG to/from the Harmony ONE Network as $1ERG.
Ergo is an Energy Efficient, Proof-of-Work blockchain based on the Extended Unspent Transaction Output (eUTxO) architecture similar to what is used by Bitcoin, but it also has native smart contract and native assets support.
The Ergo Platform has many things in common with the Harmony Protocol.
It has a shared mission in empowering humanity with affordable and effective infrastructure for safely exchanging value with each other, all over the world (rich and poor).
The Ergo Foundation has been setup to help guide and develop the Ergo Platform:
I am proposing that the Harmony Core Team create a Limited Partnership with the Ergo Foundation, in order to work together to fund and discuss how the 1BTC bridge architecture can easily be ported to deploy a 1ERG Bridge.
This would include retooling the 1BTC bridge to allow support for a 1ERG bridge.
With support from the Ergo Foundation, @harmony_dev_dao, and the members of the team which helped build the 1BTC bridge, there could be bounties defined to help complete this tasks required for deploying an 1ERG xClaim bridge.
I have spoken with several members of the Ergo Foundation via their discord, all of which seem very open to further discussions on the possibility of a partnership.
I have spoken with a staking protocol on Ergo called ergopad.io
they have had success as a launch-pad, and fund raiser on Ergo and seemed open to helping with creating liquidity for this endeavor. https://ergopad.io/ and are very excited to bring Ergo to a EVM compatible chain.
I have spoken with @ganesha about the feasibility of this project and he believes it should be fairly easy to implement technically.
Ergo has had active community growth over the past year. Both in developers and in Community members and like Harmony is both looking for partners and excited to build.
Technically, we’re just getting started with this project but because this should actually be, in some ways, easier to accomplish than the 1BTC bridge, because it’s been done before with a similar technology and Ergo has native smart contract support, I believe this work is in many ways very far along.
Additionally, because Ergo has native assets, unlike BTC, we should be able to setup an $eONE & $1sigUSD (an algorithmic stable-coin on Ergo) token on the Ergo and Harmony blockchains respectively, so as a follow up for this project, we’ll be able to bring $ONE and all Harmony HRC-20/HRC-721/HRC-XXX Tokens to the Ergo Blockchain.
Which means 2 ways vaults! Which is a great follow up but is beyond the scope of this initial Limited Partnership.
Non-technically, this project needs a good amount of community support to do well from here.
Both from the Harmony Community and the Ergo Community.
$ERG holders would need to bring and use their $ERG to Harmony.
$ONE holders would need to stake their $ONE in order to provide liquidity for the bridge.
$ERG Holders would hopefully use their $1ERG to transact, provide liquidity, and use/play within the Harmony Ecosystem.
Additionally, $ONE Holders would hopefully use the privacy features which are present on the Ergo Blockchain if we can extend the functionality present in this partnership to create an Ergo Wrapped $ONE tokens.
There would need to be some mechanism for providing rewards for for those that stake liquidity.
From speaking to ErgoPad.io, the Ergo Foundation and from my experience working with the Ergo community at large, I believe there is a large interested in using the utility of Ergo as a privacy focused store of value, to bridge to chains like Harmony.
I believe this project, if given even moderate attention from required parties could be up and running within 3-4 months.
75,000 USD in $ONE fo Development Incentives (bounties)
75,000 USD in $ERG fo Development Incentives (bounties)
I believe these funds could actually be given to some kind of 1BTC DAO or xClaim Bridge DAO (@lij) so that it could formulate a process for any bridge project like this to come online, which would be based off of the 1BTC bridge.
To create a stable return for Vault deposits ( helping pay a flat APY to cover the 0.05% fees over 10 years)
150,000 USD in $ONE for Vault Rewards
50,000 USD in $ERG for Vault Rewards
1,500,000 USD in $ONE for Vaults on Harmony
From the Harmony (+Ergo) Community
From the Harmony Core Team
From the Ergo Foundation
1,125,000 USD in $ERG for Deposits on Ergo
From the Ergo (+Harmony) Community
From the Ergo Foundation
From the Harmony Core Team
xClaim Ergo Implementation (~15k USD)
xClaim Harmony Implementation (~15k USD)
Harmony Vault System Implementation (~15k USD)
Harmony 1ERG Bridge Front End Implementation (~15k USD)
Ergo ERG->Harmony Bridge Front End Implementation (~15k USD)
1ERG Bridge deployed to Testnet (~15k USD)
1ERG Bridge audited, tested & validated (~40k USD)
1ERG Bridge deployed to Mainnet (Beta) (~10k USD)
1ERG Bridge deployed to Mainnet (Launch) (~10k USD)
115,000 $ONE Staked in Vaults (~150,000 USD) 1/4
230,000 $ONE Staked in Vaults (~300,000 USD) 2/4
5,750,000 $ONE Staked in Vaults (~750,000 USD) 3/4
11,500,000 $ONE Staked in Vaults (~1,500,000 USD) 4/4
(More total bridged, less liquidity in Vaults; Max 75% of target Liquidity ($ONE) )
37,000 $ERG Locked in Vaults (~112,500 USD) 1/4
73,500 $ERG Locked in Vaults (~225,000 USD) 2/4
183,000 $ERG Locked in Vaults (~560,000 USD) 3/4
367,000 $ERG Locked in Vaults (~1,125,000 USD) 4/4
(More bridging, healthier vault incentives)
1,000 $ERG Locking/Unlocking in Vaults per Month 1/4
2,500 $ERG Locking/Unlocking in Vaults per Month 2/4
5,000 $ERG Locking/Unlocking in Vaults per Month 3/4
10,000 $ERG Locking/Unlocking in Vaults per Month 4/4
100 Bridge Transactions per day 1/4
250 Bridge Transactions per day 2/4
500 Bridge Transactions per day 3/4
1000 Bridge Transactions per day 4/4
Based on the growth of both Harmony and Ergo over the past year, the mutual benefit that both ecosystems can provide to each other and the overall messaging of Ergo gaining access to $ONE as their initial EVM Over-Collateralized/Trustless/xClaim Bridge, I believe this project has the ability to benefit both ecosystems as a whole more than any of the contributions required individually.
I would very much appreciate comments about the amounts I’m suggesting, This is honestly to get the conversation going, and while I tried to be realistic with my developer estimates, I believe it is possible to complete this project with much less developer funding, and believe the 1BTC DAO or xClaim Bridge DAO could play a huge role in streamlining these costs.