Description of MFI cross-chain relay increasing HECO chain reserve and reducing ETH chain reserve
MFI starts with the ETH chain. When MFI cross-chaining to the HECO and BSC networks, the CEX centralised exchange is chosen as the cross-chain relay due to Gas and timeliness. The asset reserves of the cross-chain relays are based on the common reserves of multiple networks and are derived from the amount of liquidity in the market, i.e. the amount that has been produced. Reserves are not controlled or influenced by anyone and are only used for cross-chain relays, as illustrated in the following diagram.
In March 2021, MetaFinance went cross-chain the ecology to HECO chain. Our community users transfer ETH chain MFI to the exchange to withdraw HECO chain MFI, so there must be enough HECO chain MFI reserve in the exchange for withdrawal, therefore, the initial HECO cross-chain reserve is 38,263, transferred to the CEX address with the following transaction hash 0xd122cc6a0fe3ce5e566acfd05ee036ee0bfd3f1bf7bda9eadd7f066fc4231daa
The MFI existing in each chain reserve address is dynamically balanced. Each MFI-ETH transferred in means that the user has crossed ETH chain to HECO and BSC chains; Every MFI-ETH transferred out means that the MFI output from HECO and BSC chain crosses the chain to ETH. Since the exchange did not collect all users MFI-ETH, the initial reserve and a large number of ETH chain reserves in the following year were actually scattered on the ETH addresses of thousands of users. We have submitted a aggregation application.
After almost a year of MFI output, more and more users’ MFI-ETH were transferred to the exchange and MFI-HECO were extracted for successful cross-chaining, while the HECO reserve has not been increased, resulting in a shortage of withdrawable MFI reserves for the HECO chain. Therefore, the technical community will add 10,000 MFI-HECO to the reserve relay and accordingly reduce 10,000 MFI-ETH from the cross-chain relayed ETH chain reserves to the mining pool contract address, with no change in MFI circulation or output.
