Alloyed ETH: Add ETH.hub

Update Logs

  • Lowered the suggested cap to 10% from 20% following Johnny’s recommendation.

Summary

This proposal discusses adding ETH.hub ( $ETH bridged to Osmosis via IBC Eureka) as a constituent of Alloyed ETH with an initial static limit of 10%.

Note: IBC Eureka isn’t live yet but since it’s expected in a few days, I thought we could start discussions to have it included in alloyed assets sooner if community is in favour.

Alloyed ETH

Alloyed ETH was recognized as the canonical Ethereum on Osmosis in Proposal 816.

It currently has around 1145 ETH in deposits on Osmosis that are mostly ETH.axl, and consists of:

  • ETH.axl (Axelar bridge from Ethereum mainnet)
  • ETH.matic.axl (Axelar bridge from Ethereum l2 polygon) (20% Cap)
  • ETH.arbitrum.axl (Axelar bridge from Ethereum L2 arbitrum) (20% Cap)
  • ETH.base.axl (Axelar bridge from Ethereum L2 base) (20% Cap)

This proposal requests the addition of ETH.hub to the existing Bitcoin Alloy, enabling BTC to be deposited from the Cosmos Hub through IBC Eureka from Ethereum mainnet.

This proposal proposes an initial static rate limit of 10%.

For a full description of Alloyed Assets, see the Blog Post

About IBC Eureka

With the upcoming launch of IBC v2, the Hub will extend its interoperability beyond Cosmos-based chains to high-volume networks like Ethereum and Solana and potentially any other chain.

IBC Eureka is a service layer built on top of IBC v2 that offers significant improvements to cross-chain asset transfers, with the Hub as a router, including:

  • Simplicity: One-click asset routing between chains
  • Cost-effectiveness: Transactions as low as $2 for ETH transfers ($10 for fast transfers), approximately 6x cheaper than existing bridge solutions
  • Native connectivity: Direct IBC-powered connections to Ethereum initially, with Solana, L2s, and other networks to follow
  • Speed: Under 30 seconds finality for Ethereum, seconds for L2s, and instant for Cosmos chains
  • Minimal integration requirements: Automatic day-one compatibility for chains with existing IBC connections
  • Flexibility: Options to use Eureka as an aggregated route or run peer-to-peer IBC powered by its infrastructure

You can read more about IBC Eureka from here.

While this prop discusses the addition of ETH, IBC Eureka, once live, will enable interop to any asset issued on Ethereum mainnet. So if the community is in favour, proposals to include wBTC and USDT bridged via the Hub from Eth mainnet could be included as well.

Target Onchain Date : shortly after Eureka goes live and ETH can be bridged to the Cosmos.

4 Likes

Beat me to it! I had a very similar proposal drafted and ready to go once the launch timeline of Eureka was clearer.

One difference that I disagree on is the initial rate limit. I’d like to see it start a little lower since Eureka is a brand new bridge implementation with no live usage that joins an existing Alloy with decent liquidity. I suggest 10% as the initial limit to be expanded if we see usage of Eureka to justify that.

5 Likes

That makes sense. My initial draft was 10% but when I saw that L2 versions were capped at 20%, I thought I’d set it on the same. I just edited it back to 10% :ok_hand:

3 Likes

I fully support this proposal ! Huge YES