Thread by @amplitude_chain

1/ With the Amplitude Democratization rollout around the corner, let's revisit one of the flagship dApps on Amplitude & @pendulum_chain; Spacewalk 🌌

In short; Spacewalk will connect @StellarOrg with #DotSama & beyond

Let's explore further!🧵 medium.com/pendulum-chain…

2/ Spacewalk will enable Amplitude & @Pendulum_chain to utilize the multitude of fiat stable tokens on the Stellar blockchain & help build the fiat DeFi future.

Spacewalk is the first bridge between #Stellar and DotSama, which opens up a flow of tokens between networks.

3/ How does Spacewalk work?

Any parachain can easily implement the Spacewalk #Substrate pallet, giving more utility to tokens in both ecosystems. This opens up Stellar tokens to be used in applications and services across #DotSama and vice versa.

Imagine the possibilities 💡

4/ Issuing tokens:

◼️ User sends tokens from their Stellar account to a dedicated locking account which makes them temporarily unusable in the Stellar network
◼️ Immediately after step 1 the Spacewalk pallet will mint wrapped tokens and send them to the user’s account

5/ Redeeming tokens:

◼️ The user burns wrapped tokens in the DotSama chain via the Spacewalk pallet
◼️ Shortly after tokens will be unlocked inside Stellar and sent back to the user

The process of issuing & redeeming tokens is identical for bridging from DotSama to Stellar.

6/ Spacewalk Adopts @InterlayHQ Vaults Solution

Spacewalk originates from InterBTC. In a nutshell, InterBTC is a Polkadot parachain Bitcoin bridge that uses over-collateralized vaults to achieve decentralization by decentralizing the locking account itself.

Here’s how it works:

7/ Decentralization:

◼️ Everyone can create their own vault (and become an owner of that vault) in a permissionless manner
◼️ This way the set of vaults can dynamically change and grow
◼️ Users who want to issue wrapped tokens can freely pick any vault to lock their Bitcoin

8/ Collateralization:

◼️ Any vault owner needs to lock collateral on @InterlayHQ blockchain via the InterBTC pallet, usually $DOT
◼️ Collateral needs to remain locked
◼️ Value of the collateral should be 150% of the value of the Bitcoins locked in the vault (overcollateralized)

9/ Malicious vaults:

Misbehaving vault owners, get (parts) of their collateral slashed. Negatively affected users will be refunded through the collateral.

Collateral value being higher than the locked $BTC value = full refunds for users even if vault owners spend the collateral

10/ Crucial differences between Bitcoin and Stellar:

Stellar supports a wide variety of assets and every Stellar user can freely create their own custom assets. This is not possible on the #Bitcoin chain.

Therefore Spacewalk will allow a plethora of tokens to be bridged

11/ Development Milestones:

✔️ Defining the fundamental structure of the project
🛠️ Implementing the Stellar oracle and all its components
🛠️ Implementing how to manage collateral for multiple Stellar assets

12/ Conclusion:

The Spacewalk bridge will combine both Stellar and #InterBTC innovations to begin a new era of trust-minimized bridges in blockchain. This high level of decentralization, security & trustlessness is a major key in connecting fintech fiat services & DeFi.

13/ Community:

Whether you want to run a vault on Spacewalk, learn the ropes of DeFi or be early to yield farming on Amplitude & @pendulum_chain, there's an amazing group of people to discuss with!

Join us to stay up to date with our developments!
linktr.ee/pendulum_chain