I wanted to accomplish the following:
- Provide a stablecoin pegged to the U.S. dollar for the Lisk ecosystem.
- Allow Lisk to be deposited on sidechains and act as as a fiat on-ramp.
What it does
Implements several custom transactions to:
- Create, issue, and transfer custom tokens.
- Issue/burn Wrapped Lisk.
- Create/liquidate CDPs.
What is asset wrapping?
Wrapped Lisk is inspired by Wrapped Bitcoin. There is currently no mechanism for transferring LSK to a sidechain similarly to how there is no mechanism to transfer Bitcoin to an Ethereum ERC-20 contract. Wrapped Lisk provides a transparent and verifiable approach in which:
- A user sends Lisk to a wrapping provider for a sidechain who holds it and issues WLSK.
- The user receives WLSK on that sidechain.
- That WLSK can be exchanged back for LSK at any time.
This requires an authority to hold LSK and issue WLSK, but is a decent solution until cross-chain functionality comes to Lisk.
What's next for MUSD stablecoin and wrapped LSK
There are two things I hope to accomplish in the coming week:
- Hooking the CDP liquidation and issuing system up to an actual price oracle.
- Adding the ability to pay back loans to the UI.
Over the next few months I want to:
- Deploy Wrapped Lisk and MUSD to production.
- Improve the UI.
- Replace naive CDP logic with more robust logic inspired by Dai.
- Add a cross-chain deposit transaction type to make it easy for other sidechain developers to use Wrapped Lisk and MUSD.