A production-ready cross-chain Bitcoin vault system built on the Valence Protocol that enables users to deposit WBTC on Ethereum while generating yield on Neutron through Mars Protocol lending and Supervaults.
The system operates across three blockchain networks:
- Ethereum: User-facing ERC-4626 vault where users deposit collateral
- Neutron: CosmWasm-based liquidity provision via Mars Protocol + Supervaults
- Cosmos Hub: IBC/ICA bridging/messaging between Ethereum and Neutron
- IBC Eureka: Ethereum ↔ Cosmos Hub bridging
strategist/: Automated off-chain solver orchestrating cross-chain operationsdeploy/: Deployment automation for Neutron (CosmWasm) and Ethereum (Solidity) contractstypes/: Shared type definitions and configuration management
- Users deposit collateral tokens into Ethereum ERC-4626 vault, receive vault shares
- Strategist monitors deposits and bridges funds: Ethereum → Cosmos Hub → Neutron
- In Phase 1 funds deployed to Mars Protocol
- In Phase 2 funds are deployed to the Neutron Supervaults
- Withdrawal requests use ZK proofs for cross-chain state verification
- The Strategist orchestrates the cross-chain program and updates the redemption rate on Ethereum
| Role | Description | Responsible Entity | Network |
|---|---|---|---|
| Strategist | Orchestrates cross-chain operations with highly constrained actions limited to pre-defined routes. Critical responsibility is to update the redemption rate regularly. Failure to update the rate automatically pauses the vault, requiring the owner to unpause | Hadron Labs | Both Neutron and Ethereum |
| Vault Owner | Controls the vault contract parameters and emergency functions. Only the owner can upgrade and pause the contracts | Neutron DAO (multisig) on Ethereum, Neutron Valence-specific security DAO on Neutron | Both Neutron and Ethereum |
| Verification Gateway Owner | Manages the verification gateway for cross-chain state verification | Valency Security Committee | Both Neutron and Ethereum |
The co-processor and light client services are trustless services managed by Valence.
# Build the project
cargo build --release
# Deploy contracts (requires configuration)
cargo run -p deploy --bin main
# Run strategist (requires .env configuration)
cargo run -p strategist --bin main