The OFT standard is a universal token standard used to send and receive tokens across multiple blockchains. It is a set of smart contracts that enables the creation, usage, and tracking of tokens across all blockchains a token is deployed on.
Currently, CYBER is available on OP Mainnet, BNB Chain, and Ethereum. A maximum total supply of 100 million CYBER was established in a TGE. However, today, each network has its own total supply which collectively make CYBER’s maximum total supply.
Upgrading to the OFT standard will facilitate cross-network transfers of CYBER tokens natively and address potential issues related to CYBER supply fragmentation by making it omnichain.
CYBER Supply Distribution Across Chains Today
Chain: Ethereum
Total Supply: 87,700,000
Contract Link: Contract Link - ETH
Chain: Optimism
Total Supply: 9,000,000
Contract Link: Contract Link - OP
Chain: BNB Chain
Total Supply: 3,300,000
Contract Link: Contract Link - BSC
Maximum Total (All Chains): 100,000,000
Our Decision to Adopt the OFT Standard
The decision to adopt the OFT Standard was based on its proven reliability. It has been live and in production for two years, securing over $4.5 billion in transfer volume across more than 45 chains.
Updates to CYBER with OFT Implementation
- Tokenomics: No changes will be made to the allocations or the release schedule.
- Supply: CYBER's maximum, total, and circulating supplies will remain unchanged. However, the method used for tracking these will be updated to align with LayerZero’s OFT design.
- Ethereum as CYBER’s “Home” Chain: The maximum and total supply of CYBER on Ethereum will be set at 100 million and fixed. The supply on other chains will change based on demand.
- To implement this, 12.3 million CYBER (the total supply on OP Mainnet & BNB Chain) will be minted on Ethereum on June 10, 2024. This action will consolidate CYBER’s max total supply entirely on Ethereum to represent the CYBER on other chains. However, this 12.3 million will be locked in the OFT Adapter Contract and does not change the token’s supply. The tokens locked in this contract cannot be unlocked by anyone, only during the bridging process. More details are provided below.
- Bridging to Cyber Mainnet Possible: From June 10, 2024, users can bridge CYBER to Cyber Mainnet.
About the OFT Standard
The OFT standard typically operates through a mint-and-burn mechanism. To transfer an OFT token, the token is first burned on the source blockchain, followed by the minting of an equivalent amount on the destination blockchain.
With CYBER adopting the OFT standard, Ethereum will become the “home chain” for CYBER’s entire maximum total supply. This remains at 100 million.
Other chains will act as “remote chains”. The total supplies of remote chains will start at 9 million CYBER on OP Mainnet, 3.3 million on BNB Chain, and 0 on Cyber Mainnet. These will adjust dynamically based on bridging demand, meaning the total supply on these chains is variable and changes. For tracking purposes, CYBER’s maximum and total supply should be those on Ethereum.
Because CYBER already exists across multiple networks, an OFT Adapter Contract must be deployed on Ethereum, CYBER’s home chain, and OFT Controller Contracts must be deployed on all remote chains. These contracts serve as intermediary contracts that manage sending and receiving of tokens that have already been deployed on at least one network. In this scenario, a lock-and-mint mechanism is used instead of a burn-and-mint, however, the process remains largely unchanged.
For example, when CYBER is transferred from Ethereum, it is locked in the OFT Adapter and triggers the minting of a new token on the destination chain via the paired OFT Controller. This process allows the token to move across any supported blockchain using the lock-and-mint mechanism described above.
Diagram of Current Setup vs Setup with OFT Standard
How the OFT Standard is Implemented
To implement the OFT Standard, 12.3 million CYBER will initially be minted and locked in the OFT Adapter Contract on Ethereum. However, this new supply will be exclusively used to balance any tokens bridged to Ethereum from Optimism and BNB Chain, ensuring it does not affect the supply figures.
As a result, even though new CYBER tokens are minted on Ethereum to facilitate the upgrade, they remain locked in a bridging-related contract and do not affect the circulating, maximum, or total supply.
This setup allows for smooth inbound & outbound transfers between Ethereum and other networks. During these transfers, CYBER tokens from other chains are burned, or minted, and an equivalent amount of CYBER on Ethereum is unlocked, or locked.
The locking and unlocking of CYBER on the Adapter Contract depends on whether the transfer is inbound to Ethereum, or outbound. The amount of CYBER locked in the OFT contract will adjust based on the volume of bridging demands.
While the maximum total supply of CYBER on Ethereum will consistently remain at 100 million, the total supply on all remote chains is variable, but will always be equal to the amount locked in the Ethereum OFT Adapter Contract.
For additional details, refer to the diagrams and examples provided below the safety precautions section.
Safety Precautions Taken in Our OFT Implementation
To ensure the security for CYBER holders and the community, the Cyber team has taken significant safety precautions including contract audits and a specialized security stack configuration. Additionally, the Cyber team will continue developing tools for monitoring bridging activities to keep the community safe.
Extensive & Thorough Contract Audits
All the contracts used on CYBER to implement the OFT standard have been reviewed meticulously. The Cyber team has worked with internal and external teams, including the LayerZero Labs team and other teams specialized in security auditing, to make sure the smart contracts are as secure as they can be.
Security Stack Configured with 2 Decentralized Verifier Networks
LayerZero allows for the setup of a Security Stack consisting of required and optional Decentralized Verifier Networks (DVNs) to verify transfers. For enhanced security in CYBER’s OFT implementation, we selected LayerZero Labs’ default DVN, as well as Polyhedra Network as two mandatory DVNs to verify and confirm all cross-chain messages.
Both LayerZero Labs and Polyhedra were chosen for supporting all the current and potential future chains where CYBER is, and may be, deployed, as well as for their strong technical expertise and reputation.
The 2/2 DVNs configuration enhances security while maintaining cost-effectiveness; a message must be verified by both DVNs to be executed. Adding more DVNs increases gas costs, therefore, using two DVNs strikes a balance between sufficient security and cost-efficiency.
The security stack can be modified through governance processes in the future and the Cyber team does not have the authority to change it on its own.
Examples & Diagrams of CYBER OFT
Scenario 1: User bridges 1m CYBER from OP to ETH
Step 1: 1 million CYBER burned on OP.
- (Total supply on OP decreases to 8m from 9m)
Step 2: 1 million CYBER unlocked from OFT Adapter on ETH.
- (CYBER locked in the OFT Adapter Contract on Ethereum decreases to 11.3m from 12.3m)
Scenario 2: User bridges 1m CYBER from ETH to Cyber
Step 1: 1 million CYBER will be locked in the OFT Adapter on Ethereum.
- (CYBER locked in the OFT Adapter Contract on Ethereum increases to 13.3m from 12.3m)
Step 2: 1 million CYBER will be minted on Cyber.
- (Total supply on Cyber increases to 1m from 0)
Scenario 3: User bridges 1m CYBER from OP to Cyber
Step 1: 1 million CYBER will be burned on OP.
- (Total supply on OP decreases to 8m from 9m)
Step 2: 1 million CYBER will be minted on Cyber
- (Total supply on Cyber increases to 1m from 0)
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