1inch Fusion+ - Tezos

Overview

This project is a cross-chain bridge implementation developed for Unite Defi. It provides a solution for executing 1inch Fusion+ cross-chain orders between Tezos and Ethereum networks.

Features

• Hashlock and timelock functionality - Preserved on the Tezos side to ensure secure cross-chain transactions
• Signature verification - Implemented on the Tezos side for validating swap requests
• Bidirectional swaps - Token swaps are supported in both directions (Tezos ↔ Ethereum)
• On-chain execution - Deployed and tested on Tezos Ghostnet and Local EVM Node
• Resolver server - A lightweight resolver implemented to launch cross-chain order execution
• User interface - Console application for easy interaction
• Partial fills - Not implemented

The system consists of:

1. Smart contracts deployed on both EVM-compatible chains and Tezos
2. A resolver service that receives cross-chain orders from clients and executes them on Tezos and Ethereum
3. A command-line interface application that allows users to swap tokens between Tezos and Ethereum networks

Project Structure

• packages/client - Command-line interface application that allows users to swap tokens between Tezos and Ethereum networks
• packages/server - Resolver service that receives cross-chain orders from clients and executes them on Tezos and Ethereum

Note: For simplicity, we combined the functionality of three separate components into a single server:

• Backend – Responsible for creating and storing cross-chain orders.
• Resolver – Handles order execution, escrow contract origination, and performs withdraw / cancel operations.
• Relayer – Monitors escrow contract states and forwards the user's secret to the resolver.

• packages/common - Shared utilities, types, and configuration helpers used across client, server and local-evm-node packages
• packages/local-evm-node - Local EVM node for testing that deploys escrow factory and resolver contracts on EVM-compatible chains
• contracts/evm - 1Finch Fusion+ Solidity smart contracts from https://github.com/1inch/cross-chain-resolver-example
• contracts/tezos - CameLIGO smart contracts for Tezos blockchain, including escrow and escrow factory contracts
• scripts - Build scripts and development utilities

Requirements

• Node.js: >= 22.0.0
• npm: >= 10.9.0

Installation

1. Clone the repository:

git clone https://github.com/baking-bad/1inch-fusion-plus-tezos.git
cd 1inch-fusion-plus-tezos

2. Install dependencies and build the project:

npm run build

Or use the -o flag to override existing .env files:

npm run build -- -o

Run the Services

To run the system locally, follow these steps:

1. Start the local EVM node

   This service runs a local EVM environment and allows testing of swap execution on the EVM side.

   cd packages/local-evm-node
   npm start

2. Start the resolver server

   This service listens for cross-chain orders and executes them on both Tezos and Ethereum.

   cd packages/server
   npm start

3. Start the client application

   The CLI client allows you to initiate and finalize cross-chain swaps.

   cd packages/client
   npm start

Example of Swap: Tezos → Ethereum

Use the Client application to run the following commands

1. Check initial balances for maker and taker

   Run the command:

   balances-all 

   This command displays the balance of all available tokens for the user (a.k.a. the maker or me), and the balance of all available tokens for the resolver (a.k.a the taker).

2. Create a cross-chain order

   Run the swap command in the following format:

   swap 123 tez:usdt 123 eth:usdc

   After executing this command:

   • A cross-chain order will be created on the server with all necessary parameters.
   • The server will deploy smart contracts:
     • On the Tezos network, an escrow_src contract will be originated with the maker's (user's) funds locked.
     • On the Ethereum network, an escrow_dst contract will be deployed with the taker's (resolver's) funds locked.

3. Withdraw funds (you have 1 minute to do this)

   Run the withdraw command:

   withdraw last

   After executing this command:

   • The resolver will use the user's secret to call withdraw on both escrow contracts deployed on Tezos and Ethereum networks.
   • Funds will be unlocked from the smart contracts, completing the swap.
     • Funds from the escrow_src contract will be transferred to the taker (resolver).
     • Funds from the escrow_dst contract will be transferred to the maker (user).

4. Check balances for maker and taker after swap

   Run the command:

   balances-all 

   Compare the balances with those from step 1.

   • The user's balance on Tezos should be decreased by the corresponding amount.
   • The user's balance on Ethereum should be increased by the corresponding amount.
   • The resolver's balance on Tezos should be increased by the corresponding amount.
   • The resolver's balance on Ethereum should be decreased by the corresponding amount.

Example of Swap: Ethereum → Tezos

Use the Client application to run the following commands

1. Check initial balances for maker and taker

   Run the command:

   balances-all 

   This command displays the balance of all available tokens for the user (a.k.a. the maker or me), and the balance of all available tokens for the resolver (a.k.a the taker).

2. Create a cross-chain order

   Run the swap command in the following format:

   swap 123 eth:usdc 123 tez:usdt 

   After executing this command:

   • A cross-chain order will be created on the server with all necessary parameters.
   • The server will deploy smart contracts:
     • On the Ethereum network, an escrow_src contract will be originated with the maker's (user's) funds locked.
     • On the Tezos network, an escrow_dst contract will be deployed with the taker's (resolver's) funds locked.

3. Withdraw funds (you have 1 minute to do this)

   Run the withdraw command:

   withdraw last

   After executing this command:

   • The resolver will use the user's secret to call withdraw on both escrow contracts deployed on Tezos and Ethereum networks.
   • Funds will be unlocked from the smart contracts, completing the swap.
     • Funds from the escrow_src contract will be transferred to the taker (resolver).
     • Funds from the escrow_dst contract will be transferred to the maker (user).

4. Check balances for maker and taker after swap

   Run the command:

   balances-all 

   Compare the balances with those from step 1.

   • The user's balance on Tezos should be increased by the corresponding amount.
   • The user's balance on Ethereum should be decreased by the corresponding amount.
   • The resolver's balance on Tezos should be decreased by the corresponding amount.
   • The resolver's balance on Ethereum should be increased by the corresponding amount.

Example of Cancel: Tezos → Ethereum

Use the Client application to run the following commands

1. Check initial balances for maker and taker

   Run the command:

   balances-all 

   This command displays the balance of all available tokens for the user (a.k.a. the maker or me), and the balance of all available tokens for the resolver (a.k.a the taker).

2. Create a cross-chain order

   Run the swap command in the following format:

   swap 123 tez:usdt 123 eth:usdc

   After executing this command:

   • A cross-chain order will be created on the server with all necessary parameters.
   • The server will deploy smart contracts:
     • On the Tezos network, an escrow_src contract will be originated with the maker's (user's) funds locked.
     • On the Ethereum network, an escrow_dst contract will be deployed with the taker's (resolver's) funds locked.

3. Wait 70 seconds or more

   Wait until the withdrawal period expires.

4. Try withdraw funds

   Run the withdraw command:

   withdraw last

   The corresponding error should be displayed in console.

5. Cancel the swap

   Run the cancel command:

   cancel last

   After executing this command:

   • The resolver will call cancel on both escrow contracts deployed on Tezos and Ethereum networks.
   • Funds will be returned back to the maker and taker respectively.
     • Funds from the escrow_src contract will be transferred to the maker (user).
     • Funds from the escrow_dst contract will be transferred to the taker (resolver).

6. Check balances for maker and taker after swap

   Run the command:

   balances-all 

   Compare the balances with those from step 1. Balanced should be the same.

Example of Cancel: Ethereum → Tezos

Use the Client application to run the following commands

1. Check initial balances for maker and taker

   Run the command:

   balances-all 

   This command displays the balance of all available tokens for the user (a.k.a. the maker or me), and the balance of all available tokens for the resolver (a.k.a the taker).

2. Create a cross-chain order

   Run the swap command in the following format:

   swap 123 eth:usdc 123 tez:usdt

   After executing this command:

   • A cross-chain order will be created on the server with all necessary parameters.
   • The server will deploy smart contracts:
     • On the Ethereum network, an escrow_src contract will be originated with the maker's (user's) funds locked.
     • On the Tezos network, an escrow_dst contract will be deployed with the taker's (resolver's) funds locked.

3. Wait 70 seconds or more

   Wait until the withdrawal period expires.

4. Try withdraw funds

   Run the withdraw command:

   withdraw last

   The corresponding error should be displayed in console.

5. Cancel the swap

   Run the cancel command:

   cancel last

   After executing this command:

   • The resolver will call cancel on both escrow contracts deployed on Tezos and Ethereum networks.
   • Funds will be returned back to the maker and taker respectively.
     • Funds from the escrow_src contract will be transferred to the maker (user).
     • Funds from the escrow_dst contract will be transferred to the taker (resolver).

6. Check balances for maker and taker after swap

   Run the command:

   balances-all 

   Compare the balances with those from step 1. Balanced should be the same.