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contracts

The smart contracts that power the Hop Exchange.

Protocol Design

For a detailed description of the protocol, please see the whitepaper.

Overview

The Hop protocol provides a scalable rollup-to-rollup General Token Bridge using a two-pronged approach:

  1. Create a cross-network bridge token that can be quickly and economically moved from rollup to rollup or claimed on layer-1 for its underlying asset.
  2. Use Automated Market Makers to swap between each bridge token and its corresponding Canonical Tokens on each rollup in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network.

The combined approach allows users to quickly and trustlessly swap between layer-2 Canonical Tokens using the specialized bridge token as an intermediary asset.

A bonder posts their funds as collateral for the system, which effectively fronts liquidity for users to easily transfer throughout each layer. All transferred funds are tracked and the system will always have funds that account for all assets within the Hop ecosystem. Transfers are fully settled and bonders credits restored when the sending layer-2 checkpoints their state onto layer-1.

Transfers can be challenged by anyone. Challenges require a challenger to put up stake and wait until the challenged transfer is fully settled. If the challenge is won, the challenger is paid out their initial stake plus some. If it is lost, the challenge stake gets credited to the system.

Contracts

Bridges

Accounting.sol - Abstract contract that is responsible for the accounting of the layer-1 and layer-2 bridges. A bonder can stake or unstake their funds using functions in this contract. All credits and debits are accounted for and updated in this contract.

Bridge.sol - Abstract contract that inherits Accounting.sol and has the base, shared functionality for L1_Bridge.sol and L2_Bridge.sol. This contract's main functionality is to handle user withdrawals on any chain. It is also responsible for settling withdrawals and updating a bonder's credit. This contract has helper functions to retrieve data related to transfers.

L1_Bridge.sol - Abstract contract that inherits Bridge.sol. There are four main entities that will use this contract and four main functionalities within it. A user can use this contract to send tokens to a layer-2. A bonder can use this contract to bond transfer roots. An off-chain node will use this contract to confirm transfer roots. Anyone can challenge and resolve a transfer bond.

L1_ERC20_Bridge.sol - Contract that inherits L1_Bridge.sol. This contract implements ERC20 transfers that are used throughout the other L1_Bridge contracts.

L1_ETH_Bridge.sol - Contract that inherits L1_Bridge.sol. This contract implements ETH transfers that are used throughout the other L1_Bridge contracts.

L2_Bridge.sol - This abstract contract inherits Bridge.sol. Similar to L1_Bridge.sol, there are four entities that will use this contract with four main functionalities within in. A user can use this contract to send tokens to either a layer-1 or another layer-2. . A bonder can bond a withdrawal on behalf of a user. An off-chain node will use this contract to mint new h Tokens. The governance entity can set various parameters.

HopBridgeToken.sol - An ERC20 implementation that is controlled by L2_Bridge.sol. Each mainnet token is represented 1:1 by an h token (e.g., 1 mainnet DAI has a corresponding hDAI). L2_Bridge.sol handles the minting/burning of these tokens. The bridge contract also performs some transfers, however, transfers can also be made by calling this contract directly.

L2_ArbitrumBridge.sol / L2_OptimismBridge.sol / L2_XDaiBridge.sol - These contracts inherit L2_Bridge.sol and add layer-2 specific implementation details. These are the contracts that will be deployed on each layer-2.

Definitions

  • Transfer - The data for a transfer from one chain to another.
  • TransferId - The hash of a single transfer's data.
  • TransferRoot - The merkle root of a tree of TransferIds and associated metadata such as the destination chainIds and totals for each chain.
  • TransferRootId - The hash of a TransferRoot's hash and total amount.
  • Bridge - A hop bridge contracts on layer-1 or layer-2 ("L1 Bridge", "Hop Bridge", "Arbitrum Bridge", "Optimism Bridge")
  • Canonical Token Bridge - A Rollup's own token bridge. ("Canonical Arbitrum Bridge", "Canonical Optimism Bridge")
  • Challenge - A staked claim that a transfer is invalid. Anyone can challenge a transfer and will be rewarded or punished accordingly.
  • h Tokens - Hop Bridge Tokens (e.g., ”Hop ETH”, ”Hop DAI” with symbols ”hETH”, ”hDAI” respectively) are specialized L2 tokens that can be transferred rollup-to-rollup in batches and act as intermediary assets in the Hop protocol.
  • Rescue - A TransferRoot that was incorrectly bonded can be rescued (refunded) to the governance address after a certain amount of time.

Diagrams

Expected Usage

In the happy path case, a user will send tokens from one layer to another and receive the tokens on the receiving chain within seconds. The Bonder (an off-chain node) will be running and will facilitate the transfers by calling bonded withdrawal functions on the receiving chain.

In the non-happy path, the Bonder will be offline. In this case, users will still send tokens from one layer to another, however, they will be unable to withdraw on the receiving chain until the sending chain relays the transfer to layer-1 via the sending chain's messenger.

Many transfers can be made from a given layer-2 before they are confirmed on layer-1 as a single bundle called a TransferRoot. After a certain number of transactions or a certain amount of time, a Bonder will bond a Transfer Root via a transaction on the layer-1 chain. This consists of bonding 110% of the Transfer Root's amount and sends the Transfer Roots to each layer-2.

The system keeps track of the Bonder's credit and debit. Credit and debit only increment, and debit can never exceed credit. Credit is added to the Bonder's credit account each time funds are staked. Debit is added to the Bonder's debit account each time staked funds are unstaked. Credit is added to the Bonder's credit account each time transactions (from/to any chain) are successfully confirmed on layer-1. Debit is added to the Bonder's debit account each time transactions are sent (from/to any chain) but not yet confirmed on layer-1. A bonder stakes on each supported chain and the accounting system for each layer is independent of each other layer.

Transfer Roots can be challenged by anyone. When a Transfer Root is bonded, the Bonder puts up a challenger bounty equal to 10% of the Transfer Root bond. A challenge consists of a challenger putting up an equal stake and waiting until the challenged Transfer Root is fully confirmed. If the challenge is won, the challenger’s stake is returned on top of 75% of the Bonder's challenger bounty. The remaining 25% of the bounty is burned. If the challenge is lost, the challenger’s stake is credited to the Bonder.

TransferRoots can be rescued if they are created in error. In the case where a TransferRoot is incorrectly created, the funds will be locked. After a certain amount of time, the TransferRoot and its associated funds can be rescued by the governance account.

Expected Contract Invocation

Transfers

These are the expected, happy-path cases for users to send and receive funds on each layer.

  • L1 -> L2

    • User calls L1_Bridge.sendToL2()
      • Funds will show up on the appropriate layer-2 through the canonical layer-2 messenger

  • L2 -> L1

    • User calls L2_Bridge.swapAndSend()
    • Bonder calls L1_Bridge.bondWithdrawal()

  • L2 -> L2

    • User calls L2_Bridge.swapAndSend() on the sending layer-2
    • Bonder calls L2_Bridge.bondWithdrawalAndDistribute() on the receiving layer-2

If the bonder is offline, the system relies on the canonical layer-2 bridge to settle transactions on layer-1.

  • L2 -> L1 (bonder offline)

    • User calls L2_Bridge.swapAndSend()
    • 512 transactions are sent or L2_Bridge.commitTransfer() is called by anyone after 1 day
    • Wait for the sending layer-2 to be confirmed on layer-1 (approximately 7 days)
    • User or Relayer calls L1_Bridge.withdraw()

  • L2 -> L2 (bonder offline)

    • User calls L2_Bridge.swapAndSend() on the sending layer-2
    • 512 transactions are sent or L2_Bridge.commitTransfer() is called by anyone after 1 day on the sending layer-2
    • Wait for the sending layer-2 to be confirmed on layer-1 (approximately 7 days)
    • User or Relayer calls L2_Bridge.withdraw() on the receiving layer-2

Transfer Roots

The bonder settles transactions and accounting with the following functions:

  • Bonder calls L2_Bridge.commitTransfers()
  • Bonder calls L1_Bridge.bondTransferRoot()
  • Bonder calls settleBondedWithdrawals() on every chain
  • Wait 7 days and L1_Bridge.confirmTransferRoot() is triggered and settles all accounting

Challenges

Anyone can challenge transactions:

  • Anyone calls L1_Bridge.challengeTransferBond()
  • After the challenge resolution period has ended, anyone calls L1_Bridge.resolveChallenge()

Contract Addresses

Please see ./config/networks/mainnet.ts for all deployed contract addresses.

Tokens

  • Canonical L1 Token - The layer-1 token that is being bridged. ("Canonical L1 ETH", "Canonical L1 DAI", "DAI", "ETH")
  • hToken - Exists on layer-2 and represents the right to 1 Token deposited in the layer-1 bridge. hToken's can be converted to their Canonical L1 Token or vice versa at a 1:1 rate. ("hDAI", "hETH")
  • Canonical L2 Token - The primary layer-2 representation of a Canonical L1 Token. This is the token you get from depositing into a rollup's Canonical Token Bridge.

Token Path

On Hop, tokens are always converted along the following path. To convert DAI to Arbitrum DAI, DAI (on layer-1) is first converted to hDAI (on layer-2) using the layer-1 Hop Bridge. Then the hDAI is swapped for Arbitrum DAI through the AMM market. This can be done in one transaction by calling sendToL2AndAttemptSwap.

      Layer 1          |      Layer 2
                       |
Canonical L1 Token <---|---> hToken <--(AMM)--> Canonical L2 Token
                       |

e.g.

      Layer 1          |      Layer 2
                       |
DAI <--------------<---|---> hDAI <----(AMM)--> Arbitrum DAI
                       |

Temporary Steps for Deploying on Optimism

Because Optimism does not support the OpenZeppelin contracts out of the box, these steps must be followed to deploy with patched OpenZeppelin contracts.

# Deploy L1
rm package-lock.json && rm -rf node_modules && rm -rf cache && rm -rf artifacts && npm i
[Comment out Deploy L2, Setup L1, and Setup L2 in deploy.ts]
npm run deploy

# Deploy L2
npm run patch-oz
npm run deploy

# Setup L1
rm -rf node_modules/@openzeppelin && rm -rf cache && rm -rf artifacts && npm i
npm run deploy

# Setup L2
npm run patch-oz
npm run deploy

Event Signatures

Accounting

Stake(address,uint256): 0xebedb8b3c678666e7f36970bc8f57abf6d8fa2e828c0da91ea5b75bf68ed101a Unstake(address,uint256): 0x85082129d87b2fe11527cb1b3b7a520aeb5aa6913f88a3d8757fe40d1db02fdd BonderAdded(address): 0x2cec73b7434d3b91198ad1a618f63e6a0761ce281af5ec9ec76606d948d03e23 BonderRemoved(address): 0x4234ba611d325b3ba434c4e1b037967b955b1274d4185ee9847b7491111a48ff

Bridge

Withdrew(bytes32,address,uint256,bytes32): 0x9475cdbde5fc71fe2ccd413c82878ee54d061b9f74f9e2e1a03ff1178821502c WithdrawalBonded(bytes32,uint256): 0x0c3d250c7831051e78aa6a56679e590374c7c424415ffe4aa474491def2fe705 WithdrawalBondSettled(address,bytes32,bytes32): 0x84eb21b24c31b27a3bc67dde4a598aad06db6e9415cd66544492b9616996143c MultipleWithdrawalsSettled(address,bytes32,uint256): 0x78e830d08be9d5f957414c84d685c061ecbd8467be98b42ebb64f0118b57d2ff TransferRootSet(bytes32,uint256): 0xb33d2162aead99dab59e77a7a67ea025b776bf8ca8079e132afdf9b23e03bd42

L1 Bridge

TransferSentToL2(uint256,address,uint256,uint256,uint256,address,uint256): 0x0a0607688c86ec1775abcdbab7b33a3a35a6c9cde677c9be880150c231cc6b0b TransferRootBonded(bytes32,uint256): 0xa57b3e1f3af9eca02201028629700658608222c365064584cfe65d9630ef4f7b TransferRootConfirmed(uint256,uint256,bytes32,uint256): 0xfdfb0eefa96935b8a8c0edf528e125dc6f3934fdbbfce31b38967e8ff413dccd TransferBondChallenged(bytes32,bytes32,uint256): 0xec2697dcba539a0ac947cdf1f6d0b6314c065429eca8be2435859b10209d4c27 ChallengeResolved(bytes32,bytes32,uint256): 0x4a99228a8a6d774d261be57ab0ed833bb1bae1f22bbbd3d4767b75ad03fdddf7

L2 Bridge

TransfersCommitted(uint256,bytes32,uint256,uint256): 0xf52ad20d3b4f50d1c40901dfb95a9ce5270b2fc32694e5c668354721cd87aa74 TransferSent(bytes32,uint256,address,uint256,bytes32,uint256,uint256,uint256,uint256): 0xe35dddd4ea75d7e9b3fe93af4f4e40e778c3da4074c9d93e7c6536f1e803c1eb TransferFromL1Completed(address,uint256,uint256,uint256,address,uint256): 0x320958176930804eb66c2343c7343fc0367dc16249590c0f195783bee199d094

FAQ

  • Why are my Optimism contracts not working?

    • Optimism adds additional bytecode to your contracts when they are compiled. This may push your contract over the contract size limit. When this happens, your contract deployment mail fail silently (the transaction will succeed but there will be no code at the address). Try removing unused functions from your contracts.

  • Why can I not interact with contracts on xDai?

    • Interacting with xDai contracts sends a negative default gasLimit. To resolve this issue, add overrides with a defined gasLimit with each contract invocation.

  • Why do my Optimism contract interactions appear to work but do not update state?

    • If overrides are added to Optimism contract invocations, the code will say the tx has succeeded, but no state will be updated.

  • Why do my Optimism deployments and transactions sometimes hang?

    • Optimism seems to have introduced a denylist for some addresses on their public chain. Addresses that have interacted with their old public chain have seemingly been denylisted on their newest one.