IIP-21: Bridge IOTX from IoTeX to Ethereum

Governance Proposals
#1

Abstract

This proposal outlines a plan to bridge the IOTX coin from IoTeX network to Ethereum and implement CIOTX (Crosschain IOTX) token on Ethereum, with the aim of improving its utilization and demand in DeFi protocols on Ethereum and exchanges.

Motivation

While IOTX has been successfully bridged to Binance Smart Chain and Polygon using ioTube and used on those chains for over two years, its legacy ERC-20 version, IOTX-E, has limited supply and low circulating availability on Ethereum. This restricts its usage and potential in DeFi protocols on Ethereum, as well as circulating on some centralized exchanges, with listing of IOTX-E, such as Coinbase, Bittrex. Therefore, we propose introducing CIOTX on Ethereum via ioTube bridge. CIOTX will be fully backed by the circulated IOTX on IoTeX network, thus having enough supply for use in any DeFi app on Ethereum and CEX circulating.

Specification

Bridge IOTX from IoTeX network to Ethereum using ioTube

CIOTX is a wrapped IOTX on IoTeX network, which can be burnt and minted by ioTube bridge. CIOTX can be burnt on ioTube and minted on Ethereum, thus enabling its circulation on Ethereum. When there is more demand on Ethereum, CIOTX can be bridged from IoTeX network to Ethereum, and when there is more demand on IoTeX network, CIOTX can be bridged back from Ethereum to IoTeX network.

As a standard ERC-20 token, CIOTX can be used in any protocol on Ethereum

CIOTX can be used in popular DeFi protocols on Ethereum, such as Uniswap, Curve, Aave, Compound, etc.

Swap between CIOTX and IOTX-E

CIOTX can be paired with IOTX-E on DEX like Uniswap, Curve to allow users to swap between the two at a market price - As CIOTX and IOTX-E may have different values based on demand, they can possibly be paired on DEX like Uniswap, Curve to allow users to swap between the two tokens at a market price, thus enabling the market to determine their respective prices.

iip-21-flow
iip-21-flow1234×674 61.3 KB

Easier Listing Process by Centralized Exchanges

Cryptocurrency exchanges that prefer to utilize ERC-20 tokens now have the exciting opportunity to list CIOTX on Ethereum, which is fully backed by native IOTX coin. The listing will be an easy and simple process.

More details could be found here: IIP-21: Bridge IOTX from IoTeX to Ethereum by ququzone · Pull Request #20 · iotexproject/iips · GitHub

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16 Likes
#2

Depending on how much thought you may have given this topic, this is a deceptively important proposal for the future of the IoTeX token in its various forms. Read on to see why. Then let us know your thoughts and how you’re inclined to vote.

IIP-21 proposes to bridge the IOTX coin from the IoTeX network to Ethereum and create a new token called CIOTX (Crosschain IOTX) on Ethereum. The goal is to improve its utilization and demand in DeFi protocols and exchanges. Currently, the legacy ERC-20 version of IOTX, called IOTX-E, has limited supply and low circulating availability on Ethereum, hindering its usage and potential in DeFi protocols on Ethereum and some centralized exchanges. Therefore, this proposal will introduce CIOTX on Ethereum via the ioTube bridge to enable its circulation on Ethereum.

CIOTX will be a wrapped IOTX on IoTeX network, which can be burnt and minted by ioTube bridge. CIOTX can be burnt on ioTube and minted on Ethereum, allowing its circulation on Ethereum. It will also be a standard ERC-20 token that can be used in any protocol on Ethereum and in DeFi protocols.

When CIOTX is paired with IOTX-E on DEXs like Uniswap and Curve, you will be able to swap between the two at a market price. As CIOTX and IOTX-E may have different values based on demand, pairing them on DEXs will enable the market to determine their respective prices.

Passing this proposal will create a more comprehensive ecosystem of IOTX-backed tokens that can be used across different blockchains, increasing their overall utility and value. Plus, cryptocurrency exchanges that prefer to utilize ERC-20 tokens will now be able to list CIOTX on Ethereum, which is fully backed by the native IOTX coin, making the listing process easy and simple. This solves a pain point that’s been widely discussed.

The result? Bridging IOTX to Ethereum and introducing CIOTX on Ethereum will improve its utilization and demand in DeFi protocols and exchanges, thus expanding the ecosystem of IOTX-backed tokens across different blockchains. This is a good thing.

What do you think? Let us know in the comments below.

7 Likes
#3

Very exciting proposal

2 Likes
#4

Super idea, nice popular

2 Likes
#5

Sounds interesting, hard to tell how that will impact the value of the native token but I think it could cause it to crash if exchanges decide to stop listing the native and list only the ERC20 version

3 Likes
#6

We think that’s a very unlikely scenario. (de-listing the Native token)

2 Likes
#8

It’s an excellent idea :bulb:

2 Likes
#9

we simply need it… great proposal.

2 Likes
#10

Thanks - we think it will be very useful.

1 Like
#11

Great proposal, my only question is when will it be implemented after it is passed?

1 Like
#12

Instead of this can you simply migrate/retire E-IOTX into CIOTX and airdrop CIOTX to all E-IOTX holders?
Keeping both E-IOTX and CIOTX I think is a very bad idea and will create the same no-liquidity problem we have between native and E-IOTX where nobody wants to exchange a token that is worth more for a token that is worth less.

1 Like
#13

Im not knowledgeable enough to know or understand what effects this would have but trust the team. This is the way.

#14

Recently, there’s been a 1 - 2 month time period for the development work / testing to be done. But that would depend on what other work is ahead of this. I’ll follow up on this question as well as for IIP-13 (Liquid Staking Derivatives) and IIP-14 (Account Abstraction). It’s a good thing to keep the community informed so they can have a realistic set of expectations.

1 Like
#15

In case it helps, this is a comparison of past price behavior between native IOTX (red line, binance price reference), IOTX-E (green line, coibase reference) and CIOTX (white line, pancakeswap reference). As can be seen CIOTX does a better job of tracking the price of IOTX.
As it is said in the CIOTX proposal, it is an IOTX wrap “fully backed by the circulated IOTX on IoTeX network”, so for me the proposal will allow prices to be better unified between different exchanges. All advantages I think.

IOTX vs CIOTX vs IOTX-E
IOTX vs CIOTX vs IOTX-E2332×875 94.5 KB

4 Likes
#16

Thanks @JoeGoodman - it’s great to have data to back up your take on this topic. It’s reassuring to be able to refer to historical precedent when saying how we think this will play out.

1 Like
#17

I personnally disagree with this idea, because for me the value of the token is on the native chain, by doing this, you’ll crave the native token value to the ground, and virtually create liquidity in the Ethereum Iotex pool from Native iotex pool, how to track correctly circulating supply after that ??

I maybe don’t fully understand this like I should, but it seems like you’re moving circulating supply from one chain to another (and where is the Ethereum chain value for iotex ??).

Furthermore, I would prefer the airdrop version discussed by @Mister_Punk

1 Like
#18

Same liquidity bucket as Native Iotex, increase in ciotx = increase in native iotex.

1 Like
#19

@Mister_Punk - Our plan is to do a variant on what you suggest. He’s what one of the core team relayed to me, “. … we will actively work with CEX [Centralized Exchanges] to do the migration if they opt in. When most CEX switch, IOTX-E liquidity will switch to IOTX or CIOTX. People can convert their IOTX-E to IOTX on some CEX all the time, such as Binance.” Am I right that this is pretty much what you suggest?

#20

I would support this

1 Like
#21

I think to make something which benefit to real world is to smart contract with people… Connection and only connection