Bridging Process
Overview
The bridging mechanism operates with a straightforward yet robust structure. Bittensor users gain access to the TAO Bridge by connecting their MultiversX and Bittensor accounts. Once connected, the user selects whether they intend to transfer assets from Bittensor to MultiversX or vice versa.
If the user chooses to bridge to MultiversX, they receive a provisional wallet address to deposit their TAO tokens. Subsequently, they sign the transaction through the Bridge frontend and await the minting of their wTAO tokens.
For users looking to swap their wTAO tokens back to TAO, the process is streamlined. Users only need to initiate the burn of their wTAO tokens through the frontend, signaling a bridge-back request. After a brief period, Hatom will transfer the corresponding TAO tokens to the provided Bittensor address.
Step By Step Process
Login
To initiate the Bridge In process, the user must establish connections with both the Bittensor and MultiversX wallets. Hatom supports four wallet options for the Bittensor ecosystem: Polkadot.js Wallet, Nova Wallet, Sub Wallet, or the Bittensor Wallet extension.
The Nova Wallet integration will be available exclusively on the mobile version of the application. The Bittensor Wallet extension, however, will not be supported until after the first quarter of 2024, as it currently lacks the capability to integrate with decentralized applications (dApps).
To connect to the MultiversX ecosystem, users have four available methods: the MultiversX DeFi Wallet, the MultiversX Web Wallet, Ledger hardware wallets, and the xPortal App.
Select the Bridge Direction
You can either bridge to MultiversX, also referred to as Bridge In, which involves transferring assets from the Bittensor ecosystem to the MultiversX blockchain, enabling you to exchange your TAO tokens for the wrapped version, wTAO. Alternatively, you can Bridge Back from MultiversX to Bittensor, allowing you to retrieve your TAO tokens after burning the corresponding wTAO tokens on the MultiversX blockchain.
Transfer Your Assets
Bridge in Intent
When a user initiates a transfer from the Bittensor ecosystem to the MultiversX blockchain, they will be prompted to enter the desired amount. The interface will then display the applicable fees for the bridging service. If the user accepts the presented values, they can proceed by clicking "Bridge." This action will create a bridge intent record in the system's database, and the user will be assigned a provisional wallet address to transfer the specified amount of TAO tokens for bridging.
Subsequently, the user will be required to sign the transfer transaction using their selected wallet provider, authorizing the movement of TAO tokens from their wallet to the assigned provisional wallet address.
After a period of time, the system will systematically scan all bridge intents created for users who have initiated the bridging process. It will verify the provisional wallets for the presence of funds and identify valid bridge intents. For each valid intent, the system will proceed to mint the corresponding amount of wTAO (Wrapped TAO) tokens and delegate them to the user's MultiversX account.
Bridge Back Intent
When users wish to retrieve their TAO tokens from the wTAO tokens on the MultiversX blockchain, they must select the "Bridge to Finney" option to access the bridge-back interface. On this page, users will specify the amount they intend to bridge back. Similar to the initial bridging process, the interface will display the corresponding amount of TAO tokens the user will receive.
If the user proceeds, they will be prompted to click "Bridge" and sign a transaction to burn the specified amount of wTAO tokens. This action will trigger the creation of a bridge-back intent record in the system's database.
After a period of time, the system will scan for these burn transactions that have been confirmed on the blockchain, typically after 20 blocks have been included. Bridge-back intents associated with confirmed burn transactions will be qualified as valid, and the system will then proceed to transfer the corresponding TAO tokens from the Treasury wallet to the user's Bittensor wallet address.
Bridging Fees
The bridging process between the Bittensor and MultiversX ecosystems incurs certain fees. These fees are composed of two components: gas fees associated with executing transactions on the respective blockchains, and operational fees to sustain the bridging service.
Bridge In Intent
The bridging process from Bittensor to MultiversX involves several fee components:
User Deposit Fee: Users must pay the transaction fee to deposit TAO tokens from their Bittensor address to the designated provisional wallet address.
Provisional Wallet Transfer Fee: A transaction fee, along with an optional tip, is charged to transfer the TAO tokens from the provisional wallet to the Treasury wallet. This fee covers the costs of executing the transfer on the Bittensor network.
Staking Fee: A transaction fee is incurred to stake the amount received by the Treasury wallet and generate rewards for distribution through the liquid staking mechanism.
Operational Fee: An operational fee of 0.5% of the bridged amount is charged to cover the costs associated with maintaining and operating the bridging service.
Bridge Back Intent
The bridge-back process, which involves retrieving TAO tokens from the MultiversX blockchain, includes the following fee components:
Burn Transaction Fee: Users must pay the gas fee denominated in EGLD for executing the burn transaction of their wTAO tokens on the MultiversX blockchain.
Undelegation Fee: A transaction fee of 150 nTAO is charged for undelegating the corresponding TAO tokens from the staking pool to the Treasury wallet.
Treasury Transfer Fee: An additional transaction fee of 150 nTAO is incurred for transferring the TAO tokens from the Treasury wallet to the user's Bittensor wallet address.
Operational Fee: An operational fee of 0.5% of the bridged amount is charged to cover the costs associated with maintaining and operating the bridge-back service.
Last updated
