FIO Token and Domain NFT wrapping

Published on: 18.09.2022
FIO Token and Domain NFT wrapping

FIO Token and Domain NFT wrapping is in progress. Wrapping is the process of taking a token from one chain and making it available on another chain. For example, a wrapped Bitcoin is an ERC-20 representation of a Bitcoin token on the Ethereum chain.

It is believed that the ability to wrap FIO Tokens and Domain NFTs will be beneficial to the FIO Community. It will open up new use cases for FIO Tokens and Domains such as:

  • Enable FIO Domains to be traded on NFT trading sites such as Open Sea as ERC-721s.

  • Enable FIO tokens to be used in a rapidly growing Defi Ecosystem such as Uniswap which rewards token holders for providing liquidity to decentralized exchanges.

Wrapping is typically accomplished in the following way:
  • Alice transfers a token on Chain C to a designated address which is controlled by a centralized or decentralized Oracle O.
  • Oracle O, then issues a new token on Chain D and transfers it to an address designated by Alice.
  • The token on Chain C is now “locked” and not usable on Chain C until it is redeemed.

  • When Alice or the new owner wants to redeem the token, they transfer it on Chain D to a designated address which is controlled by Oracle O.

  • Oracle O, then “unlocks” the token on Chain C and transfers it to a designated address.

The objective of this project is to:
  • Build into FIO Protocol ability to “lock” tokens and designate target blockchain and address. This would allow anyone to build oracle solutions for any blockchain

  • Build or engage an oracle solution that will monitor FIO and Ethereum, enabling wrapped FIO Tokens and Domain NFTs on Ethereum.

FIO Chain wrapping functionality

  1. System smart contract on the FIO Chain.

  2. It will be owned by eosio (controlled by BPs) who will register and unregister oracles using regoracle and unregoracle actions.

  3. Users will:
    SEND: User will send FIO Domain using wrapdomain or FIO Tokens using wraptokens actions and pay Oracles fee they obtained using get_oracle_fees.
  4. Oracles will:
    • Specify fees (in FIO) they want to be paid by the user for wrapping services using setoraclefee action. These fees should cover gas fees on another chain.
    • TRANSFER: Once Oracles detect that a user on another chain wants to unwrap FIO Domain or FIO Tokens, they will submit their observation using unwrapdomain or unwraptokens actions. Once all Oracles have submitted their observation, the FIO Domain or FIO Tokens will be transferred.

The Foundation for Interwallet Operability (FIO) is an industry consortium, consisting of leading wallets, exchanges, crypto payment processors, and various other entities and community members dedicated to the pursuit of blockchain usability through the FIO Protocol.

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