Ethereum, Bitcoin, and Tezos to Zcash Atomic Swap Protocol

AtomicDEX Protocol for ZCASH to ETH, BTC, and XTZ

Recently, Vitalik Buterin called for collaboration in order to bring serverless, easy to use Atomic Swap bridges between ZEC, ETH, and BTC. https://twitter.com/VitalikButerin/status/1242553658195271681

This proposal aims to expand Komodo's AtomicDEX protocol to allow on-chain atomic swaps between Zcash and Tezos. It will allow users to swap in a fully decentralized environment and developers to use the protocol to build different De-Fi services on top of the AtomicDEX protocol.

Komodo's AtomicDEX protocol already supports ZEC to Ethereum, all ERCs, and Bitcoin atomic swaps. We propose an expansion to include Tezos compatibles.

Applicant background

Komodo's AtomicDEX is the leading decentralized exchange protocol. The Komodo project is also one of the pioneers in atomic swap technology. In 2014, Komodo’s lead developer wrote the code that would allow for some of the very first peer-to-peer swaps to be made. At first, the swaps could only be made between NXT assets, but the code was eventually extended to fit any SHA-256 cryptocurrency. As the AtomicDEX protocol was expanded and optimized, the team added the ability to swap any Bitcoin compatible against ETH, ZEC, and other protocols in a serverless environment.

Komodo also pioneered atomic swaps using Electrum servers (lite nodes) which allowed the development of light-weight mobile apps to complete atomic swaps. You can download Komodo's premium AtomicDEX app on iOS and Android. The app is just one example of the types of applications that can be built by using the open-source AtomicDEX protocol.

Download links: https://atomicdex.io/

Motivation and overview

It's necessary to develop solutions that allow users to trade without the need for centralized parties. More importantly, these solutions need to be streamlined and easy to use. Komodo has developed the most advanced atomic swap protocols available in the blockchain space. It's time that we leverage the AtomicDEX's full potential to decentralize finance and realize cross-chain interoperability.

There are dozens of projects working on solving something that was solved by the Komodo team a long time ago. Instead of working against each other, blockchain projects need to work in tandem to bring to the market real-world solutions.

Technical approach

The Komodo team has already done most of the heavy lifting and ZEC is fully supported on the AtomicDEX protocol. Users can swap Zcash to Bitcoin or Ethereum on-chain using a serverless mobile or desktop app or the command line. Any users can also provide liquidity to the DEX using a Liquidity Provider node setup. All that is missing is the integration with Tezos compatibles.

Technical documents: AtomicDEX cross-chain atomic-swap protocol description: https://developers.komodoplatform.com/basic-docs/start-here/core-technology-discussions/atomicdex.html#taker-and-maker-are-committed Github repository: https://github.com/komodoplatform/atomicDEX-API AtomicDEX Documentation: https://developers.atomicdex.io Etomic Swap Smart Contracts: https://github.com/artemii235/etomic-swap

Execution risks

At this point in time, we don't expect any obstacles to implementing Zcash to Tezos atomic swaps. Zcash to BTC, ETH, and all ERCs are already supported.

Evaluation plan

Once we're successful, users and developers will be able to use the AtomicDEX protocol to exchange Zcash to Bitcoin on-chain as well as Ethereum, ERCs, and Tezos.

Tasks and schedule

3 Months Development time maximum.

Budget and justification

$50,000 is a reasonable grant for all of the work that the Komodo team has put into implementing Zcash to the AtomicDEX. Currently, developers can use the protocol to build decentralized trading apps for Zcash without the need for proxy-tokens or off-chain order matching and settlement. That includes Zcash cross-chain interoperability to any Bitcoin and Ethereum compatible. Soon, that will include Tezos compatibles.

Tipping

Tips Received
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ZEC

Campaign

Requested Funding
$50,000
Open for Public Review