Proposal for a different and new Aave Money Market: The RSK Market

We propose to incorporate The RSK Market.

This work will completely be done by RSK devs. We will only ask Aave to be close to the RSK team to incorporate their experience. RSK already has done an integration with Chainlink, and we use the TokenBride to link both blockchains using LINK to pay Chainlink´s Node Operators.

We will intensively work first on testnet, and once quality/security is done, will move it to production. This could be done in a short period of time.

Now that Aave aTokens can be exported, as an example of things that could be done, we can use this tool and have customers on each blockchain doing business on both sides, something that never was done before.

             *An Aave approach to the Bitcoin world.*

What is RSK?

RSK-RIF

RSK’s full technology stack is built on top of bitcoin: From RSK smart contracts to the RSK Infrastructure Framework. The stack is designed to create a more fair and inclusive financial system.

Bitcoin, is a store and transfer of value. The blockchain is secure because miners with high infrastructure and energy costs create the new blocks to be added to the blockchain every 10 minutes. The more hashing power they provide, the more secure the network is.

RSK is the first open source smart contract platform that is powered by the bitcoin network. RSK’s goal is to add value and functionality to the bitcoin ecosystem by enabling smart-contracts, near instant payments, and higher-scalability.

How RSK is connected to bitcoin?

The first point of contact is through mining.

The bitcoin miners do what is known as merged mining, securing both networks with the same infrastructure and energy consumption.

They create blocks on the bitcoin network every 10 minutes, including transfer of bitcoin from different addresses and in the process they create new bitcoins.

On RSK, blocks are created every 30 seconds, to secure the execution of smart contracts. This does not mint any new coins in the process, but does earn a reward from the merged mining.

2-way peg with Bitcoin

The second point of contact is the 2-way peg, also known as the bridge.

This component connects both networks to allow the transfer of bitcoins to RSK, thereby allowing developers to interact with smart contracts. They pay gas using the same bitcoin, the smart bitcoin.

RSK Market

We propose a new idea, which is to create a Market that incorporates new customers that are not using Aave. We will bring to the table new customers that will bring new business and liquidity from the bitcoin world that look the DeFi platforms differently.

Risks

This new Market will not bring or add new risks to the platform, but anyway we will keep security on top of priority.

New cryptocurrencies

We will bring together with our proposal, all new tokens that are already on RSK Marketplace natively that will increase the liquidity and opportunities for both companies.

Conclusion

Our business proposal is simple and synergic, nothing to loose, a lot to gain. We ask you Aave Governance community to give us a Go and allow us to show you what we could do.

Thank you for reading and giving us a feedback.

10 Likes

I don’t think you need community approval to experiment or to build. Can’t speak for the devs but I’m sure they’d be happy to help too :blush: bitcoin and eth bridges have great potential and would love to hear more about how you are planning on implementing it, and how you see the future

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Thanks, yes we know it, because Aave is Open Source so we could do it anyway, but we would like to have a complete Governance support, we understand this is a great move for DeFi and for Bitcoin, Aave-RSK. Also we believe in Aave decentralise decision making processes. Let’s keep in touch.

5 Likes

I think this is a huge opportunity as there are a lot people already waiting to use their bitcoin on Aave. This would be a really good addition to what aave is already having. Definitely for this!

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Yes, I would agree. There would be huge possibilities with an addition like this.

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…or to use ether on aave.

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Blockquote
RSK already has done an integration with Chainlink, and we use the TokenBride to link both blockchains using LINK to pay Chainlink´s Node Operators.

How does this work? RSK holds ERC tokens of LINK? And pays with ETH for the gas fees of these tx?

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RSK holds rLINK (ERC20 compatible) which is a LINK that was passed through the TokenBridge into the RSK Blockchain and is used to pay the Node Operators, they will receive LINK. Gas on RSK is paid using rBTC, and is much more cheaper than on Ethereum, which is also a big advantage.

Thanks for the quick answer! So were is the rLINK, rBTC tx data being stored? Which blockchain is the final ledger for these tx? And if someone would use AAVE on RSK, how many tx are done by using it? Including in the back. With so many protocols involved (Rootstok, AAVE, LINK, Bitcoin, and Ethereum) it seems like a lot?

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RSK is a blockchain that uses a bridge with Bitcoin, you can move BTC by doing a two way-peg with Bitcoin. Also the bitcoin miners do what is known as merged mining, securing both networks with the same infrastructure and energy consumption. On RSK you can run Ethereum compatible Smart Contracts and Aave contracts could be deployed on RSK blockchain as a fork, but that is not the idea. We want to create an RSK Market place on Aave that will link your tx to RSK by using a TokenBridge, so fees could be move to, back and forth from either blockchain. Governance, liquidation and other services and tools will require a different strategy which we are now working on, but we will take baby steps with security on top of our priorities. But remember, assuming you are now on Aave, you may move some of your aTokens to RSK and once there, access to a complete different world, by interacting with bitcoin and other crypto based on BTC, and of course will work both ways. We will see.

1 Like