OIP-2: OKExChain & FIBOS Partnership proposal

Author FIBOS (@FIBOSIO)
Status Draft
Type Standard Track
Category Core
Created May 26, 2020

Introduction

FIBOS Ecosystem and OKExChain Ecosystem have announced here that we have partnered with each other to establish a deep cooperative relationship.

Both FIBOS Ecosystem and OKExChain Ecosystem will jointly promote decentralized ecological cooperation and integration in the area of public chain including building technical infrastructure, exploring advanced technology, improving community governance, developing blockchain business applications, modeling DeFi scenarios, etc.

As a vital part of the blockchain industry, OKExChain Ecosystem has attracted widespread attention since it has its code open-sourced. FIBOS community also conducted a full-scale investigation and analysis of OKExChain. OKExChain Ecosystem draws a broad vision of “decentralization”, “the rights and governance of community” and “DeFi”, which is sync with the belief which FIBOS holds – communalization, frictionless value flow and “discover value everywhere”.

For this purpose, FIBOS Ecosystem and OKExChain Ecosystem have decided to establish deep cooperative partnership after continuous discussions. FIBOS community could make great contributions to build technical infrastructures, accumulate technical experience and expand developer community in an opening, inclusive and decentralized environment provided by OKExChain Ecosystem. This move will empower the growth of both FIBOS Ecosystem and OKExChain Ecosystem. At the same time, we also look forward to according more benefits from the long-term cooperation between the two parties.

As for the joint efforts put in IBC (inter-blockchain communication), asset multi-chain circulation, decentralized exchange protocols, DeFi, media resources and many other areas, the cooperation must be complementary, reciprocal and multi-win. FIBOS is committed to being major arteries of IBC infrastructure, DeFi applications and advanced technology exploration. This cooperation will definitely contribute to the development of the blockchain industry.

FIBOS (斐波 in Chinese) is a public chain project launched by developers and industry members of blockchain, is also a platform cultivating blockchain applications. FIBOS has the largest community of blockchain developers, which is focus on business applications and cutting-edge technology exploration of blockchain area. FO, which is fundamental circulation token of FIBOS blockchain, also the gas of the on-chain resource model of FIBOS.

Including heterogeneous decentralized IBC protocol, DEX decentralized asset exchange protocol, many original DeFi fundamental facilities have been launched on FIBOS. Many underlying digital currencies issued on Ethereum, such as ETH, USDT, DAI, have also been circulated on FIBOS which is benefited from the robust IBC protocols. FIBOS DEX is a basic protocol for decentralized exchange with the characteristics of providing depth and liquidity with combined algorithmic trading and manual limit order, no KYC, supporting any trading pair transaction between tokens on FIBOS.

As the world’s leading cryptocurrency exchange platform, OKEX has developed and launched OKExChain Ecosystem which is also has industry-leading technical strength. OKExChain has its source code fully open-sourced on GitHub since Apr. 16th, 2020. OKExChain Ecosystem aims to promote the implementation of large-scale commercial applications based on blockchain technology. It grants every participating node the equal rights in this whole decentralized system. Users could publish and run varieties of dApps, issue their own cryptocurrencies, create their own trading pairs between tokens, and exchange cryptocurrencies freely on OKExChain. Through the IBC infrastructure, the blockchain intercommunication of value flow and application scenarios can be implemented simply and efficiently.

OKExChain: https://www.okex.com/okexchain

FIBOS:

  • https://fibos.io

  • https://github.com/FIBOSIO

Partnership proposal

1. IBC Infrastructure of FIBOS & OKExChain

1.1 Overview

As the relay chain of the OKExChain heterogeneous IBC infrastructure, FIBOS will link the asset issued on Ethereum and EOS to OKExChain Ecosystem which makes it possible to accomplish value flow through these chains.

1.2 More Details

1.2.1 Current IBC solution of OKExChain (based on Cosmos)

Implemented based on Cosmos-sdk, OKExChain follows the heterogeneous IBC strategy presented by Cosmos which is basically structed as a “federal architecture”. This kind of IBC formula is essentially implemented by collecting the voting from relay chain verifiers, which leads to more trust issues. The validation of IBC transactions is strongly depending on the degrees of the verifiers.

Its strategy takes a detour to avoid technical challenge by implementing community governance mechanism instead of cryptographic engineering. This brings the next problem; the system risk will be increased with the growing IBC asset.

FIBOS believes that current solution is not perfect and safe for the promising OKExChain Ecosystem, which will lay hidden dangers for the future development of the public chain ecology.

Problems:

  1. Current solution causes problems in assets security and system stability.

  2. Low efficiency and high cost.

  3. Complex architecture leads to poor risk tolerance.

1.2.2 FIBOS’s Solution

Plenty of investigations and verifications proves that it is feasible to use a fusion strategy – for non-predominant public chain (except for Bitcoin, Ethereum, EOS, etc.), OKExChain could use federal IBC solution; for Ethereum or EOS, OKExChain could use FIBOS as a trusted relay chain.

The IBC solution currently implemented by FIBOS does not rely on any individual verifier or any group of verifiers. Instead, it ensures IBC security and asset transferring through public chains by cryptographic engineering.

FIBOS’s scheme has a simple and straightforward architecture. It is currently the most secure and robust strategy in terms of operation, asset cross-chain cost and cross-chain transaction transmission. The only problem is that it is not a universal protocol and cannot be quickly and cost-effectively compatible with other public chain. But it can be solved by the relay chain solution of Cosmos architecture.

FIBOS have already built a decentralized heterogeneous IBC protocol through FIBOS and Ethereum. After cooperating with OKExChain Ecosystem, FIBOS will design heterogeneous decentralized IBC architecture with OKExChain and EOS and will become a general IBC parallel relay chain for OKExChain, Ethereum, and EOS.

At the same time, the OKExChain Ecosystem can also become a block producer of FIBOS chain, just like HelloPool, EosAsia, Starteos, EOS Gravity, Slowmist and other EOS block producer, would be responsible for witnessing OKExChain IBC assets and attracting developers of FIBOS and EOS community to OKExChain Ecosystem.

1.2.3 Draft IBC Solutions for Bitcoin

Limited by the creation era and technical architecture of Bitcoin, the IBC for Bitcoin is hard or impossible. FIBOS proposes that OKExChain could solve the heterogeneous decentralized IBC with BTC through the following solutions: A. Members and other institutions of OKExChain Ecosystem could issue anchored BTC assets based on the Ethereum through multi-signatures, which is consistent with the current WBTC / HBTC / imBTC solutions. B. OKExChain Ecosystem could use the multi-signature scheme to increase the number of IBC verifiers from 3 to multiple, enhancing the decentralized properties and asset security. FIBOS could provide technical support.

2. Eco-assets IBC Transferring of OKExChain

2.1 Value

Ethereum is currently the largest market for DeFi application. It will continue to become the most valuable public chain aggregating considerable amount of developers, users, and assets for the foreseeable future. Nevertheless, markets on DPoS chains such as FIBOS or EOS - due to its weak decentralized property - needs “strong” assets from the Ethereum urgently.

2.2 Solutions

Transferring ecological assets including USDK / OKB to FIBOS is simple and efficient by utilizing FIBOS decentralized IBC protocol. USDK / OKB on FIBOS could be used in FIBOS DEX and DeFi applications and could also be made use of community developers and DApps. After the official launch of the OKExChain Mainnet, it will provide USDK / OKT with OKExChain / Ethereum / EOS / FIBOS multi-chain circulation and enable developers adopt USDK / OKB / OKT as a basic value medium on their own DApps.

3.DEX Protocol

3.1 Cooperation Framework

FIBOS DEX is a protocolized solution, that is, as a fundamental infrastructure, is fully open and integratable. For users or traders, anyone could complete the initiation of a trading pair of any of two tokens on FIBOS, make a transaction on any trading pairs with no KYC regulations. For developers, integrating display of front-end page with data of the on-chain transactions of DEX is also simple and flexible.

The OpenDEX program of OKExChain shares the same idea with the DEX protocol of FIBOS, both of which are aiming at minimizing transaction friction and promoting circulation efficiency.

FIBOS could also provide DEX solutions for OKExChain with standardized integration of front-end UI and API, exchange trading algorithms, etc.

3.2 Optimization

Uniswap / Bancor is currently the most mainstream Automated Market Maker (abbr. AMM) algorithm, which can provide users with no-counterparty transactions and excellent performance in depth and liquidity of exchange.

However, the AMM protocol of Uniswap / Bancor has defects in transaction slippage, loss on exchange transactions, K-line display, readability, poor user experience.

For this purpose, FIBOS DEX adopts a fusion solution, combining Uniswap trading algorithm with the traditional order book transactions, so that DEX protocol could serve users and assets with different needs simultaneously. Through order integration, non-specific transaction direction and other solutions, DEX protocol is taking automated market making and user experience into account, which could contribute to a better formula of the OKExChain DEX protocol.

4.Products of Public Chain and Community of Developers

4.1 Products of Public Chain

A sophisticated public chain ecosystem requires corresponding products and infrastructure services for users and developers.

For instance, users need varieties of tools to enjoy blockchain technology for a better experience including cryptocurrency wallet, blockchain explorer, data visualization toolkits, governance tools (vote for block producers, propose a proposal, etc.), community forum and so on. In the meantime, developers require development documentation, integrated SDKs, develop containers for DApps and starter courses to take a quick start and diminish the learning curve.

4.2 FIBOS’s solution

FIBOS could provide cryptocurrency wallet, blockchain explorer, data visualization toolkits, governance tools, community forum, development documentation, integrated SDKs, develop containers for DApps and starter courses mentioned above to help OKExChain with ecosystem development.

FIBOS can provide the above wallet, blockchain browser, on-chain data visualization, governance tools (super node data, voting, proposals), community forums, basic development document system, supporting sdk for OKExChain ecology under the OKExChain ecological incentive framework , Wallets and plug-in open containers, developer courses and other products to help ecological development. In addition, developers of both FIBOS and EOS community could also join the OKExChain community and promote a better development atmosphere.

5. Medium of DeFi.cn

5.1 Introduction

DeFi.cn aims to disseminate DeFi information, integrate industry resources, unite media platform and publish public opinions. DeFi.cn could also serve as a member of the OKExChain Ecosystem and provide aggregated media / content and DeFi resources for the OKExChain community, including contributions to industry influence, make greater say in blockchain world.

6. OKChain Hackthon

6.1 Design of FIBOS IBC Protocols with OKChain

https://wallet.fo/okchain.pdf

6.2 Demonstration Video

https://youtu.be/PWukFWsiF9Q