Beyond is an ideathon hosted by DoraHacks, the world’s largest multi-chain developer incentive platform, and Nolus - an application-specific blockchain network with a new type of lending market solution on top built with the Cosmos SDK and CosmWASM, and utilizing the Inter-Blockchain Communication (IBC) plus the Interchain Accounts (ICA) protocols for real-time cross-chain communication with other IBC- and ICA-enabled blockchain networks.

During the 97 days of running, participants will get fully familiar with the current architecture of the Nolus network and build concepts around creating a trust-minimized communication structure with Ethereum Virtual Machine (EVM) compatible blockchain networks.

The goal of this Beyond ideathon is to establish an applicable concept for trust-minimized interoperability between a CosmWASM-based chain such as Nolus and an arbitrary EVM-compatible chain (e.g. Arbitrum, Avalanche C-chain, Optimism, Ethereum, etc.). Ideally, this communication protocol should be reusable across different EVM networks. The goal is to have a smart contract on the Nolus chain perform actions on a foreign EVM chain through cross-chain messages.

For now, Nolus can do this with other Cosmos chains such as Osmosis and Neutron via the IBC protocol but the end goal is to scale to other networks beyond Cosmos. Ideally, the same type of communication is to be applied to EVM chains as well. This means a user should be able to open a lease (borrow) position where the Nolus protocol would utilize a decentralized exchange deployed on an EVM chain (e.g. Trader Joe on the Avalanche C-chain or Camelot on Arbitrum) to facilitate the swapping of the deposit provided by the borrower and the loan provided by Nolus to the desired asset by the borrower. This position should be controlled by a Nolus lease (borrow) smart contract. Examples of actions which should be controlled by a specific lease contract:

The contract must be able to liquidate the asset should its price drop enough to reach the liquidation threshold;
The borrower needs to be able to claim the asset from the account on the integrated EVM network if the debt is repaid to Nolus;
Should the borrower want to repay the debt with the assets in the position, they should be able to send a corresponding command to the Lease contract which in turn would swap the assets on the integrated EVM exchange and return the debt to Nolus and the excess assets to the borrower.

Tasks

Task 1. Read about the current architecture of Nolus. Create an initial concept showcasing the most crucial components of the appchain, and their interaction with one another and other IBC-enabled Cosmos chains.

Task 2. Explore existing technologies for cross-chain communication that support messaging between EVM-based and Cosmos chains. Outline prerequisites, potential challenges (e.g. Nolus is a semi-permissioned appchain), and steps for integration.

Task 3. Extend the concept generated with Task 1 to include the new communication standard described in Task 2. Make sure to describe every interaction between a component from the existing Nolus architecture and a newly added part.

Integrated Task Requirements for Nolus Appchain Development Ideathon Application: Objective: Develop a comprehensive understanding of the Nolus appchain’s current architecture and explore innovative solutions for integrating cross-chain communication capabilities between Ethereum Virtual Machine (EVM)-based and Cosmos chains. Extend the existing architecture by incorporating these new technologies and standards. Deliverables for Combined Tasks:

Architecture Overview:
- Diagram: Create an initial detailed diagram of the Nolus appchain, highlighting the crucial components and their interactions within the appchain as well as with other IBC-enabled Cosmos chains.
- Description: Provide a written explanation of each component, detailing its role and interactions within the network.
Cross-Chain Communication Analysis:
- Technology Research: Research and document existing technologies that enable messaging and communication between EVM-based and Cosmos chains, with an emphasis on compatibility with semi-permissioned appchains like Nolus.
- Integration Challenges: Identify and analyze potential challenges in integrating these technologies, considering Nolus’s specific requirements and semi-permissioned nature. Propose possible solutions to these challenges.
- Integration Steps: Outline a clear step-by-step plan for integrating the chosen cross-chain communication technology into the Nolus architecture.
Extended Architecture Development:
- Updated Diagram: Update the initial architecture diagram to include the new cross-chain communication standard, showing how it integrates with the existing components.
- Interaction Description: Describe in detail every interaction between the original components and the newly added parts of the architecture. Highlight how these enhancements will improve the appchain’s functionality and performance.

Rewards

$10,000 paid out in NLS tokens on the Nolus blockchain

Entry Requirement

Format and Submission Guidelines:

Compile the deliverables into a single, coherent document in PDF format.
Ensure that all diagrams are clear and include labels and legends for clarity.
The text should be well-organized, using headings and subheadings appropriately, and free from jargon to ensure readability and comprehension.
Include a cover page with the participant’s name, registration details, and the submission date.

Judge Criteria

Evaluation Criteria:

Technical accuracy and depth of the architectural overview.
Innovation and practical application of cross-chain communication technologies.
Clarity, detail, and feasibility of the integration plan.
Quality of presentation, including the organization of content and the professional quality of diagrams. Participants are encouraged to demonstrate creativity and technical proficiency in their solutions, aiming to enhance the scalability and interoperability of the Nolus appchain. The final submissions should not only address the technical requirements but also anticipate future developments and potential expansions of the appchain ecosystem.

📅 Key Dates

Start: 25.06.2024
Final Date of Submission: 31.12.2024
Review Period: 01.01.2025 - 20.01.2025
Winners Announcement: 27.01.2025

Workshop Date: TBD

Judge Panel

Ivan Kostov: Product Lead & Co-founder, Nolus Protocol
Gancho Manev: CTO, Nolus Protocol
Metodi Manov: Product Lead, Nolus Protocol
Sebastien Couture: The Interior, Epicenter podcast, Nebular Summit, Interop Ventures
Phil RX: Pro Validators

About Nolus

The Nolus Protocol defines a money market between lenders looking to yield on stablecoins and borrowers looking to amplify their holdings. For borrowers, the Nolus DeFi Lease provides up to 150% financing on the initial investment with a lowered margin call risk and access to the underlying leveraged assets through whitelisted strategies.

The protocol utilizes an application-specific blockchain built using the Cosmos SDK and a WASM smart contract engine focusing on interoperability, security, and performance. Interoperability, in particular, is at the core of Nolus’ offering as the Protocol utilizes IBC and Interchain Accounts to tap into a diverse set of liquidity hubs without creating fragmentation across chains. Each DeFi Lease position is a separate smart contract instance on the Nolus chain that registers an Interchain Account on a host network and facilitates swapping via an integrated exchange where the assets in the lease position are kept in the Interchain Account.

For hackathon questions, join Nolus discord.

You can learn more about Nolus here: https://hub.nolus.io/