LEVERJ

GLUON PLASMA

BHARATH RAO

PLASMA

1. Create a plasma blockchain P that’s anchored to root chain R
2. A Deposit in R creates UTXO in P
3. A Withdrawal from R removes UTXO from P
4. Periodically store block headers of P into R to commit state changes
5. Block headers contain sufficient information to prove correctness of state transitions
6. Incorrect state transitions in P are rolled back (up to a point) using fraud-proofs on R
7. Exits are prioritized by earlier P blocks, to ensure fraudulent outputs fail
8. If information needed for fraud-proofs is withheld, mass exit from P to R

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PLASMA VARIANT: PLASMA MVP

1. Deposit Creates a new Block with a single UTXO
2. Withdraw using Priority Queue by age
3. Spend using signed transactions
4. Regularly Check Plasma chain
5. Mass Exit if Plasma chain is byzantine

PLASMA VARIANT: PLASMA MVP

• Deposit Creates a new Block with a single UTXO
• Withdraw using Priority Queue by age -- Queue can get very large¹
• Spend using signed transactions -- UTXO shredding
• Regularly Check Plasma chain -- Onerous for ordinary user²
• Mass Exit if Plasma chain is byzantine -- Rush to exit problem

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¹ Frequent/Large traders are likely to have millions of tiny UTXOs

² Need to regularly check if chain is still OK

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PLASMA VARIANT: PLASMA CASH

• Deposit Creates a new Block with a single non-fungible UTXO
• Withdraw using Priority Queue by age
• Spend using UTXO history
• Regularly Check Root chain
• Mass Exit if Plasma chain is byzantine

Not suitable for order book/price time priority trading.

PLASMA VARIANT: PLASMA CASH

• Deposit Creates a new Block with a single non-fungible UTXO
• Withdraw using Priority Queue by age -- Queue can get very large
• Spend using UTXO history -- large proof of validity¹
• Regularly Check Root chain -- Less Onerous but not ideal²
• Mass Exit if Plasma chain is byzantine -- Rush to exit problem

Not suitable for order book/price time priority trading.

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¹ Frequent UTXO transfers could result in proofs that exceed gas limit

² Need to regularly check if your coins are hijacked by operator

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Incentive imbalanced

Any actor who has incentive to be safe has to bear the burden of watching chain

Only victim/counterparty can prove fraud

PLASMA VARIANT: GLUON PLASMA

• Account based -- No UTXO Shredding
• Deposits/trades update balance -- No UTXO bloat
• Balances update with 2+ signatures -- Compact fraud proofs
• Any user can check and halt chain -- Not Onerous for ordinary user
• Halt Chain on byzantine behavior -- Withdraw at leisure

Suitable for Low-Latency Trading

Gluon Plasma: Highly usable

1. Proof-of-Authority gives instant finality
2. No bonds needed in normal (non-byzantine) conditions.
3. Nominal bonds in byzantine conditions
4. Fraud proofs for every state transition
5. Compact fixed-size fraud proofs and challenge proofs
6. Short Withdrawal delays (< 2 hrs instead of 2 weeks)
7. Non-onerous safety -- Even a single honest validator ensures safety
8. Low onchain storage burden
9. No free option problem

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Incentive Balanced

Any actor who has incentive to cheat has to post a bond

Any one (not necessarily operator/counterparty) can prove fraud and claim bounty

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Every griefing attack has a mitigating exit

Incentive Balanced

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Provably secure*

FOUR CONSTRAINTS KEEP GLUON PLASMA SECURE

1. Segregation: Users can only deposit/withdraw to addresses they control
2. Solvency: Users can only move amounts that are uncommitted to trades
3. Agency: Every move requires signatures of all included parties
4. Integrity: Everything adds up (values never increased/decreased incorrectly)

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*Mathematical Proof pending

Plasma MVP UTXO Model

U1 ETH UTXO: 3

U1 ETH UTXO: 4

U2 LEV UTXO: 3000

U1 ETH UTXO: 2

U1 LEV UTXO: 2000

U2 ETH UTXO: 5

U2 LEV UTXO: 1000

BUY 2000 LEV

FOR 5 ETH

SELL 2000 LEV

FOR 5 ETH

U2 LEV UTXO: 0

SHREDDING: Small QTY in orders results in huge number of tiny UTXOs

Plasma Order matching: Knapsack problem

U1 ETH UTXO: eth1

U1 ETH UTXO: eth2

U2 LEV UTXO: lev2

U1 ETH UTXO:

U1 LEV UTXO:

U2 ETH UTXO: ?

U2 LEV UTXO: ?

2000 ETH UTXO TO BUY LEV

FOR TOTAL 5 ETH

50000 LEV UTXO TO SELL 2000 LEV

U2 LEV UTXO: lev1

Find best fit of millions of source UTXOs to match the best fit of thousands of orders to give the best fit of resulting UTXOs: np-complete

Gluon Accounts: From UTXO to Account

U1 ETH UTXO: 7

U1 LEV UTXO: 0

U2 ETH UTXO: 0

U2 LEV UTXO: 3000

U1 ETH UTXO: 2

U1 LEV UTXO: 2000

U2 ETH UTXO: 5

U2 LEV UTXO: 1000

BUY 2000 LEV

FOR 5 ETH

SELL 2000 LEV

FOR 5 ETH

Gluon Accounts: One balance per asset type

Gluon Ledger

U1 ETH UTXO: 7

U1 LEV UTXO: 0

U2 ETH UTXO: 0

U2 LEV UTXO: 3000

U1 ETH UTXO: 2

U1 LEV UTXO: 2000

U2 ETH UTXO: 5

U2 LEV UTXO: 1000

BUY 2000 LEV

FOR 5 ETH

SELL 2000 LEV

FOR 5 ETH

0xU1#ETH

0xU1#LEV

0xU2#ETH

0xU2#LEV

LEDGER ENTRIES

Gluon Fraud Proofs

U1 ETH UTXO: 7

U1 LEV UTXO: 0

U2 ETH UTXO: 0

U2 LEV UTXO: 3000

U1 ETH UTXO: 2

U1 LEV UTXO: 2000

U2 ETH UTXO: 5

U2 LEV UTXO: 1000

BUY 2000 LEV

FOR 5 ETH

SELL 2000 LEV

FOR 5 ETH

U2 SIGNED ORDER

U1 SIGNED ORDER

7 - 5 = 2

0 + 2000 = 2000

2000 fill <= 2000 qty

buy.sign(U1) = T

sell.sign(U2) = T

Halting the Gluon Plasma Chain

• If the operator is compromised/chain byzantine, halt chain
• Vote on root chain to halt chain weighted by stake size
• Next plasma block is delayed proportional to voting %
• If vote exceeds threshold level, root chain halts plasma chain
• Halting gives everyone time to exit without undue urgency

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