ChainX’s XBTC 2.0 was completed and the testnet will be launched at the end of March. The X-Association and the PolkaX development team have some details and possible issues that the community needs to pay attention to, should they want to participate.
The name of the new XBTC 2.0 module is CXBridge, for those of you digging in our Github from time to time. CXBridge is used for cross-chain deposit and withdrawal of BTC and is integrated into ChainX as a functional module. Compared with the 1.0 trust method, 2.0 uses an Asset Vault for asset management and collateral for risk control.
There are three roles in CXBridge: ordinary users (just users), Asset Vaults, and supervisors. Any user can apply to become an Asset Vault by locking PCX as collateral. Each Asset Vault will be bound to an associated Bitcoin address. Users can obtain the corresponding amount of XBTC by transferring money to the address of the matching Asset Vault. The same applies in reverse where users destroy XBTC to receive the corresponding amount of BTC. The address associated with each Asset Vault is supervised. When an abnormal transaction is found, CXBridge will force the liquidation of the Asset Vault and its PCX collateral.
Benefits of this system
The PCX used as collateral to become an Asset Vault will receive 10% of the mining income of XBTC in addition to the regular PCX staking income. We are still discussing whether the Asset Vault should also receive BTC transaction fees. When a PCX holder participates in staking, the extra income of being an Asset Vault will Incentivise the creation of more Asset Vaults.
The user initiates a BTC deposit request and needs to mortgage a small amount of PCX to prevent malicious attacks. For those attackers who initiate a deposit request but do not actually deposit, the mortgaged PCX will be slashed. When users receive XBTC, they can get PCX as XBTC mining income to subsidize the transaction fees.
More details about the XBTC 2.0 custody solution will be further announced when the testnet is launched, so stay tuned.
Below we have already answered some common questions from the community.
1）It is often seen in the community that project X or Y is also a BTC cross-chain project of the Polkadot ecology. It is the same as ChainX? What impact will it have on ChainX and XBTC?
It can be said that this is a problem that everyone is worried about, but I don’t think there is any need to worry about it. All BTC cross-chain projects are like a seat axis between BTC and Polkadot. Users can choose which bridge to cross the river. To meet the market demand, even multiple projects together can hardly meet the market demand. ChainX has its own unique advantages, and XBTC will be more competitive in the Polkadot ecosystem.
2）After the release of the XBTC 2.0 custody plan, will the 1.0 plan stop?
At present, the XBTC 1.0 custody solution is working well. At the same time, due to the size that XBTC 2.0 can accommodate is limited by the collateral (PCX, DOT, etc.) of the Asset Vault, in order to ensure the supply of XBTC, the 1.0 custody solution is likely to available together with 2.0. The solutions exist at the same time, and users can choose freely.
3）Can DOT dual mining still be realized?
- In theory, when DOT can be used as collateral for Asset Vaults, DOT dual mining can be realized, which is worth looking forward to.
- How to determine the mortgage rate, liquidation threshold and other parameters in the future?
- PolkaX calibrates these parameters for initial settings. In the future, the community can set and update specific parameters through on-chain governance.