The concept is great, and could be a game changer. It's actually very similar to a decentralized exchange prototype I built many years ago on a different blockchain that offered native tokens. I kept hoping to be able to do something similar for hive one day when it has native token support - which VSC solved with its own chain. Good job!
The infrastructure requirements will be massive. There need to be a number of validators for each supported blockchain, each keeping a full node of those chains and with a solid multisig setup that allows changes in the composition without incurring fees for moving to different addresses too often.
The collateralization of tokens with HIVE is something I didn't expect. I assume it's for security, if something goes wrong with another coin's validators/multisig? That means all this risk will be offloaded to those providing the HIVE collateral. Will they be rewarded with a dedicated token? Are there other use cases for that token to give it value?
What's the mechanism to keep the collateral ratio at 1.5 despite price changes of the assets involved?
Exciting!
The overcollateralization is there to make sure there is no reliance on trust. All tokens brought in are protocol and economically secured so there is 0 incentive for hackers or bad faith actors.
Sure hackers could still potentially attack a single validator but that could never compromise the system or the liquidity in any way as they would lose in collateral more then they would gain in liquidity.
Validators secure the whole system, theyre not chain specific as it stands now.
There will be robust reward incentives included and a VSC token TGE coming in 2026. We did some marketcap modeling based on industry benchmarks and its looking good. Working on ideas for utility. A lot of things. So definitely keep an eye out for more information on that. :)
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