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Polynomial Chain is a derivatives chain that addresses liquidity fragmentation with a unified liquidity layer, enabling innovative derivatives.


Value Locked

$31.41 K

1.48%

Canonically Bridged
$31.41 K
Externally Bridged
$0.00
Natively Minted
$0.00

  • Tokens
  • Daily TPS
    0.01101.58%
  • 30D tx count
    11.40 K

  • Stage
    Stage 0
  • Type
    Optimistic Rollup
  • Purpose
    DeFi
  • Sequencer failureState validationData availabilityExit windowProposer failure

    Badges

    About

    Polynomial Chain is a derivatives chain that addresses liquidity fragmentation with a unified liquidity layer, enabling innovative derivatives.


    Value Locked
    Activity
    Onchain costs
    Milestones & Incidents

    Polynomial Chain announced

    2024 Jul 16th

    Polynomial Chain announced on X.

    Learn more
    Risk summary
    Fraud proof system is currently under development. Users need to trust the block proposer to submit correct L1 state roots.
    Risk analysis
    Fraud proof system is currently under development. Users need to trust the block proposer to submit correct L1 state roots.
    Sequencer failureState validationData availabilityExit windowProposer failure

    Sequencer failure

    Self sequence

    In the event of a sequencer failure, users can force transactions to be included in the project’s chain by sending them to L1. There is a 12h delay on this operation.

    State validation

    None

    Currently the system permits invalid state roots. More details in project overview.

    Data availability

    Onchain

    All of the data needed for proof construction is published on Ethereum L1.

    Exit window

    None

    There is no window for users to exit in case of an unwanted regular upgrade since contracts are instantly upgradable.

    Proposer failure

    Cannot withdraw

    Only the whitelisted proposers can publish state roots on L1, so in the event of failure the withdrawals are frozen.

    Rollup stage
    PolynomialPolynomial is a
    Stage 0
    Optimistic Rollup.
    The requirement for available node software is under review

    Learn more about Rollup stages
    Please keep in mind that these stages do not reflect rollup security, this is an opinionated assessment of rollup maturity based on subjective criteria, created with a goal of incentivizing projects to push toward better decentralization. Each team may have taken different paths to achieve this goal.
    Technology

    Fraud proofs are in development

    Ultimately, OP stack chains will use interactive fraud proofs to enforce state correctness. This feature is currently in development and the system permits invalid state roots.

    • Funds can be stolen if an invalid state root is submitted to the system (CRITICAL).

    1. L2OutputOracle.sol - Etherscan source code, deleteL2Outputs function

    All data required for proofs is published on chain

    All the data that is used to construct the system state is published on chain in the form of cheap blobs or calldata. This ensures that it will be available for enough time.

    1. Derivation: Batch submission - OP Mainnet specs
    2. BatchInbox - Etherscan address
    3. OptimismPortal.sol - Etherscan source code, depositTransaction function
    Operator

    The system has a centralized operator

    The operator is the only entity that can propose blocks. A live and trustworthy operator is vital to the health of the system.

    • MEV can be extracted if the operator exploits their centralized position and frontruns user transactions.

    1. L2OutputOracle.sol - Etherscan source code, CHALLENGER address
    2. L2OutputOracle.sol - Etherscan source code, PROPOSER address

    Users can force any transaction

    Because the state of the system is based on transactions submitted on the underlying host chain and anyone can submit their transactions there it allows the users to circumvent censorship by interacting with the smart contract on the host chain directly.

    1. Sequencing Window - OP Mainnet Specs
    2. OptimismPortal.sol - Etherscan source code, depositTransaction function
    Withdrawals

    Regular exit

    The user initiates the withdrawal by submitting a regular transaction on this chain. When the block containing that transaction is finalized the funds become available for withdrawal on L1. The process of block finalization takes a challenge period of 7d to complete. Finally the user submits an L1 transaction to claim the funds. This transaction requires a merkle proof.

    • Funds can be frozen if the centralized validator goes down. Users cannot produce blocks themselves and exiting the system requires new block production (CRITICAL).

    1. OptimismPortal.sol - Etherscan source code, proveWithdrawalTransaction function
    2. OptimismPortal.sol - Etherscan source code, finalizeWithdrawalTransaction function
    3. L2OutputOracle.sol - Etherscan source code, PROPOSER check

    Forced exit

    If the user experiences censorship from the operator with regular exit they can submit their withdrawal requests directly on L1. The system is then obliged to service this request or halt all withdrawals, including forced withdrawals from L1 and regular withdrawals initiated on L2. Once the force operation is submitted and if the request is serviced, the operation follows the flow of a regular exit.

    1. Forced withdrawal from an OP Stack blockchain
    Other considerations

    EVM compatible smart contracts are supported

    OP stack chains are pursuing the EVM Equivalence model. No changes to smart contracts are required regardless of the language they are written in, i.e. anything deployed on L1 can be deployed on L2.

    1. Introducing EVM Equivalence
    Permissions

    The system uses the following set of permissioned addresses:

    Challenger 0x4a49…A746

    Challenger is an actor allowed to delete state roots proposed by a Proposer.

    Used in:

    Guardian 0x4a49…A746

    Guardian is an actor allowed to pause deposits and withdrawals.

    Used in:

    Proposer 0x5DA2…6714

    Proposer is an actor allowed to post new state roots of current layer to the host chain.

    Sequencer 0x67a4…94F1

    Sequencer is an actor allowed to commit transactions from current layer to the host chain.

    ConduitMultisig 0x4a49…A746
    • This is a Gnosis Safe with 4 / 7 threshold.
    • Challenger, Guardian.
    • Can act on behalf of ProxyAdmin.
    • Can change configuration of AddressManager (acting via ProxyAdmin).
    • Can change configuration of SystemConfig - it can update the preconfer address, the batch submitter (Sequencer) address and the gas configuration of the system.
    • Can upgrade implementation of OptimismPortal, SystemConfig, OptimismMintableERC20Factory, L1ERC721Bridge, L2OutputOracle (acting via ProxyAdmin).
    • Can upgrade implementation of L1StandardBridge (acting via ProxyAdmin) - upgrading bridge implementation allows to access all funds and change every system component.

    Used in:

    Those are the participants of the ConduitMultisig.

    Smart contracts
    A diagram of the smart contract architecture
    A diagram of the smart contract architecture

    The system consists of the following smart contracts on the host chain (Ethereum):

    The main entry point to deposit funds from host chain to this chain. It also allows to prove and finalize withdrawals. This contract stores the following tokens: ETH.

    Can be upgraded by:

    Upgrade delay: No delay

    AddressManager 0x287b…655C

    Sends messages from host chain to this chain, and relays messages back onto host chain. In the event that a message sent from host chain to this chain is rejected for exceeding this chain’s epoch gas limit, it can be resubmitted via this contract’s replay function.

    The main entry point to deposit ERC20 tokens from host chain to this chain. This contract can store any token. This contract can store any token.

    Can be upgraded by:

    Upgrade delay: No delay

    ProxyAdmin 0x3c68…0a1f
    • Can be used to configure AddressManager.
    • Can be used to upgrade implementation of OptimismPortal, SystemConfig, OptimismMintableERC20Factory, L1ERC721Bridge, L2OutputOracle.
    • Can be used to upgrade implementation of L1StandardBridge - upgrading bridge implementation allows to access all funds and change every system component.

    Contains configuration parameters such as the Sequencer address, gas limit on this chain and the unsafe block signer address.

    Can be upgraded by:

    Upgrade delay: No delay

    A helper contract that generates OptimismMintableERC20 contracts on the network it’s deployed to. OptimismMintableERC20 is a standard extension of the base ERC20 token contract designed to allow the L1StandardBridge contracts to mint and burn tokens. This makes it possible to use an OptimismMintablERC20 as this chain’s representation of a token on the host chain, or vice-versa.

    Can be upgraded by:

    Upgrade delay: No delay

    Used to bridge ERC-721 tokens from host chain to this chain.

    Can be upgraded by:

    Upgrade delay: No delay

    Contains a list of proposed state roots which Proposers assert to be a result of block execution. Currently only the PROPOSER address can submit new state roots.

    Can be upgraded by:

    Upgrade delay: No delay

    Value Locked is calculated based on these smart contracts and tokens:

    Main entry point for users depositing ERC20 token that do not require custom gateway.

    Can be upgraded by:

    Upgrade delay: No delay

    Main entry point for users depositing ETH.

    Can be upgraded by:

    Upgrade delay: No delay

    The current deployment carries some associated risks:

    • Funds can be stolen if a contract receives a malicious code upgrade. There is no delay on code upgrades (CRITICAL).

    Knowledge nuggets