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