Bridge Circuitbreaker for bridged assets

Inspiration

Inspired by Nomad bridge hack, its impact on the Moonbeam ecosystem and capabilities of Axelar Network

What it does

Bridge Circuitbreaker smart contracts allow DeFi usage of bridged tokens that are distributed among multiple blockchains and can be offloaded if native bridge is hacked. For example, crosschain cirtcuitbreaker assets are wrapped on multiple chains (e.g. Avalanche, Fantom, Polygon), are sent via Axelar Network to Moonbeam and afterwards can be used as a collateral in DeFi apps, like Moonwell Artemis. The bridge circuitbreaker contracts use Axelar GMP to monitor amount of tokens in native contracts and bridged contracts and if a discrepancy is found, an emergency sale of tokens on multiple chains will be initiated in a decentralized and permissionless way. Therefore initial collateral of DeFi users would be protected and would prevent toxic debt for lending platforms.

There are multiple possible upgrades and considerations including MEV frontrunning, selection of multi-chain routers for token sales, different protection modes which would significantly increase the utility of the Bridge Circuitbreaker asset.

How we built it

This is a limited proof of concept.

Challenges we ran into

Found this hackathon only three days ago, had an idea two days ago, too little time.

Deployments

As it is quite complex to deploy and run a demo of this project on multiple testnets so it uses a local dev env by Axelar Network.

Built With

• elixir
• phoenix
• react
• solidity
• typescript