Cross-Chain Deposit Module (CCDM)

The Cross-Chain Deposit Module (CCDM) is a sophisticated system built on Royco, designed to facilitate cross-chain deposit campaigns. IPs can incentivize APs to commit liquidity on a source chain towards agreed-upon actions (supplying, LPing, swapping, etc.) on a destination chain. Royco provides efficient price discovery for protocols trying to acquire liquidity for a desired timeframe. CCDM handles safely transporting this liquidity to the intended protocol in a trust minimized manner. A single CCDM instance can facilitate cross-chain deposit campaigns from a single source chain to a single destination chain.

CCDM consists of two core components: the Deposit Locker on the source chain and the Deposit Executor on the destination chain. All incentive negotiation and liquidity provision is powered by Royco Recipe IAMs that live on the source chain. Visit the following documentation for a comprehensive explanation of how each CCDM component operates:

• CCDM Enabled Recipe IAMs - Source Chain
• Deposit Locker - Source Chain
• Deposit Executor - Destination Chain

Technical Components

1. RecipeMarketHub: A hub for all recipe IAM interactions between APs and IPs on Royco. Deployed on the source chain.

   • Permissionless market creation and offer creation, negotiation, and filling
   • Atomic Weiroll Wallet creation and execution of deposit recipes upon an offer being filled.
   • Allows APs to execute withdrawal recipes to reclaim their funds.

2. WeirollWallet: Smart contract wallets used to execute Weiroll Scripts/Recipes

   • Used on the source chain to deposit funds for liquidity provision on the destination chain and to withdraw funds (rage quit) from the DepositLocker prior to bridge.
   • Used on the destination chain to hold multiple depositors' positions from the same market, execute the destination campaign's deposit recipes, and hold the receipt tokens for depositors to withdraw after an unlock timestamp.

3. DepositLocker: Deployed on the source chain

   • Integrates with Royco's RecipeMarketHub to facilitate deposits and withdrawals.
   • Accepts deposits from depositors' Weiroll Wallets upon an offer being filled in any CCDM integrated market.
   • Allows for depositors to withdraw funds until deposits are bridged.
   • Relies on a verifying party (green lighter) to flag when funds for a specific market are ready to bridge based on the state of the DepositExecutor on the destination chain.
     • The green lighter will maintain a wholestic view of the entire system (locker and executor) to deem whether or not the funds for a given market are safe to bridge based on the destination campaign's input tokens, receipt token, and deposit recipe in addition to the causal effects of executing them.
     • After the green lighter gives the green light for a market, depositors have an additional 48 hours to "rage quit" from the campaign before they can be bridged.
   • Bridges funds and specific depositer data (addresses and deposit amounts) to the destination chain via LayerZero V2.
     • Each bridge transaction has a CCDM Nonce attached to it. Multiple LZ bridge transactions can have the same CCDM Nonce, ensuring that the tokens end up in the same Weiroll Wallet on the destination chain.

4. DepositExecutor: Deployed on the destination chain

   • Maintains a mapping of source chain Royco markets to their corresponding deposit campaign's owner, unlock timestamp, receipt token, and deposit recipe on the destination chain.
   • Relies on a verifying party (campaign verifier) to validate that the deposit recipe will work as expected given the currently set campaign parameters.
   • Lets the owner of the deposit campaign set its unlock timestamp, receipt token, and deposit recipe.
     • The unlock timestamp is immutable after it is set once.
     • The receipt token is mutable until the first deposit recipe successfully executes for a campaign, but changing it unverfies the campaign.
     • Deposit recipes are eternally mutable, but changing it unverfies the campaign.
   • Receives the bridged funds and depositor data via LayerZero V2 and atomically creates one Weiroll Wallet per CCDM Nonce and stores the depositor data.
     • The DepositExecutor holds the Weiroll Wallet's deposits until the campaign owner executes the deposit recipe.
   • Allows owners of deposit campaigns to execute deposit recipes for wallets associated with their campaign.
   • Allows depositors to withdraw their prorated share of receipt tokens (if the deposit recipe has executed) or their original deposit (if the deposit recipe hasn't executed) after the unlock timestamp has passed.

CCDM Flow

1. IP creates a Royco Recipe Market on the source chain.
   • The market's deposit recipe will approve the DepositLocker to spend the amount of tokens deposited (fill amount) and then call the deposit() functions on the DepositLocker.
   • The market's withdrawal recipe will call withdraw() on the DepositLocker.
2. IP initializes their Deposit Campaign corresponding to their Royco Recipe market on the destination chain by setting the following parameters:
   • Unlock Timestamp
     • The ABSOLUTE timestamp that all deposits in your campaign will be locked until.
     • Note: This value can only be set ONCE.
   • Receipt Token
     • This is the ERC20 token that your protocol/DApp will return (as a receipt of the depositor's position) upon executing the deposit recipe.
   • Deposit Recipe
     • This is the Weiroll Script/Recipe that will deposit the tokens into your protocol/DApp and return the receipt tokens to the Weiroll Wallet executing the deposit recipe.
     • The deposit script must also enforce that the Weiroll Wallet executing the recipe gives maximum allowance to the Deposit Executor to spend the receipt tokens.
3. IPs and APs place and negotiate the terms of offers through Royco.
4. Upon an offer being filled:
   • The Recipe Market Hub creates a fresh Weiroll Wallet owned by the AP.
   • The Recipe Market Hub automatically executes the market's deposit recipe through the wallet, depositing the liqudiity into the DepositLocker.
   • The deposit is withdrawable by the AP any time prior to their funds being bridged.
5. Once green light is given for a market, its funds can be bridged to the destination chain from the DepositLocker after the rage quite period (48 hours).
6. After the rage quit period ends, IP bridges depositors for their market to the destination chain.
7. The DepositExecutor receives bridged funds belonging to a market on the source chain and creates a Weiroll Wallet for the CCDM nonce associated with the bridge transaction if it hasn't aleady.
   • The DepositExecutor stores granular accounting for each bridged depositor to facilitate prorated withdrawals.
   • The DepositExecutor holds the deposits until the owner executes the deposit recipe for the Weiroll Wallet.
8. The destination deposit recipe is executed (if verified) by the campaign's owner for the Weiroll Wallets associated with their campaign on the destination chain.
9. Steps 6,7, and 8 are repeated until all depositors have been bridged and deposited into the protocol/DApp on the destination chain.
10. APs can withdraw funds through the DepositExecutor after the campaign's unlock timestamp has passed.