🔗 How t3rn Will Leverage Caldera to Optimize Cross-Chain Execution

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🔍 Final audits with Quantstamp in process

🎤 Brussels: My keynote at Polkadot Decoded 2024

🌐 Multichain Matters App Integration

🔐 Understanding the Power of Escrow Orders

🛠️ Lifecycle and Mechanics of an Escrow Order Contract

🔄 Claiming and Refunding Orders

Tech Update

🔐 Understanding the Power of Escrow Orders

In previous editions, we've explored the intricacies of cross-chain orders and how they facilitate interoperable execution. However, we haven't yet delved into the unique advantages offered by submitting orders via the escrow lock mechanism. 

TLDR: Escrow Orders enable the settlement of multiple orders across multiple chains under a single multi-order submission, whether initiated by a user or a smart contract. This capability is central to realizing t3rn’s vision of fail-safe cross-chain smart contract execution.

What is an Escrow Order Contract?

An escrow order contract is a smart contract designed to securely hold funds until specific conditions are met, ensuring that transactions only proceed when all parties’ terms are satisfied. If the multi-order consists of multiple atomic escrow orders, the funds and side effects committed by executors to escrows will be reverted if conditions are not met. This ensures that users can claim the totality of their rewards, while each executor can reclaim their respective atomic order executions.

🛠️ Lifecycle and Mechanics of an Escrow Order Contract

Creating an Escrow Order

Users create escrow orders by providing necessary details such as the target account, asset type, amount, and timeout duration. The contract validates these details, calculates any applicable fees, and records the order while emitting an EscrowOrderCreated event for transparency.

Locking Funds

Once an order is created, users must lock the specified funds into escrow. The contract verifies the asset’s validity and ensures that the required protocol fees are paid before locking the funds. This action is confirmed through an EscrowFundsLocked event.

🔄 Claiming and Refunding Orders

The contract supports both claiming and refunding of orders based on predefined conditions, ensuring all atomic orders in a multi-order are satisfied before any funds are transferred:

• Claiming an Order: When the conditions for all atomic orders in a multi-order are met (e.g., target account confirms receipt), the executors can claim the rewards for their valid executions within escrow. The contract checks the validity of the claim for all atomic orders, transfers the rewards to the executors, and emits a Claimed event.

• Refunding an Order: If the conditions for any atomic order in a multi-order are unmet within the specified timeout, users can request a refund. The contract verifies the refund eligibility, reverts the funds and side effects committed to the escrows, and returns the funds to the sender. A Claimed event is emitted to indicate the refund, ensuring both the user can reclaim the totality of the funds and each executor can reclaim their respective atomic order executions.

Conclusion

The Escrow Order contract is a powerful tool for managing secure, trustless transactions in DeFi. By supporting order creation, fund locking, claims, and refunds, it ensures that funds are only transferred when conditions are met, aligning with t3rn's vision of fail-safe cross-chain smart contract execution. This mechanism is essential for anyone looking to leverage the full potential of decentralized finance across multiple chains.