Thread by @thorchain_org

Ethereum Testnet Update

Latest update using a method suggested by @0xEther

Thread on how it works.

rinkeby.etherscan.io/address/0x1069…

Step 1)

Call `deposit()` with 0.1 ETH, and memo:

SWAP:ETH.TKN-0x6D052e01B0C60d8c1aBB6C936651f9bf55633CD4:0x<yourAddress>

Remember - you are trying to pass transaction intent through to THORChain.

The contract will receive the deposit and emit an event once confirmed on-chain.

This only happens once it is confirmed. Every THORNode is hooked to an Ethereum node and will receive the event logs.

The Ethereum Bifrost will then parse the deposit, retrieve the memo and prepare a witness transaction for THORChain.

This is then sent into THORChain from all nodes.

Once consensus on the event is received then THORChain will process the swap.

Importantly, balances are entirely virtual. To swap ETH to a Token, there are four balances of three assets in three places:

RUNE:ETH
RUNE:TKN

RUNE: On Binance Chain TSS Vault
ETH: On Ethereum TSS Vault
TKN: In Ethereum Vault Contract

When the swap is computed, the txOut is designated:

This is a chain-agnostic instruction to pay the transaction.

It also designates which vault is paying it.

Bifrost will then recognise that it needs to prepare a transaction and it does so, by creating a transaction and delegating it to the TSS routine:

Finally, the tx is signed and broadcasted.

In this case, it is the TKN, so Bifrost has prepared a ERC-20 transfer and inserts the memo to record the transaction:

And that is how the swap is done.

Importantly, the only Ethereum nuances that THORChain deals with is ERC-20 and their contract methods.

This is the purpose of the Vault Contract - to serve as a static entry point for ERC20.

The community is welcome to provide feedback.