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InstaWrap Module

InstaWrap enables instant cross-chain asset wrapping, allowing users to receive wrapped tokens immediately without waiting for confirmations.

Overview​

Traditional bridge: Wait 6 BTC confirmations (~60 minutes) InstaWrap: Receive wBTC instantly, LP takes confirmation risk

┌─────────────────────────────────────────────────────────────┐
│                    InstaWrap Flow                            │
│                                                             │
│  Bitcoin Network                    RP1 Network             │
│  ┌────────────┐                    ┌────────────┐          │
│  │  Send BTC  │────0 conf────────▶│ Instant    │          │
│  │  to bridge │                    │ wBTC credit│          │
│  └────────────┘                    └────────────┘          │
│        │                                  │                 │
│        │                                  │                 │
│        ▼                                  ▼                 │
│   Confirmations          LP backs the credit until         │
│   accumulate              confirmations complete            │
│        │                                  │                 │
│        │                                  │                 │
│        ▼                                  ▼                 │
│   6 confirmations        Credit finalized, LP released     │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Supported Chains​

ChainAssetConfirmationsInstant Credit
BitcoinBTC → wBTC6✅ Yes
EthereumETH → wETH12✅ Yes
SolanaSOL → wSOL32✅ Yes
EthereumERC20s12✅ Yes

Instant Credit​

How It Works​

  1. User sends BTC to bridge address
  2. Relayer detects 0-conf transaction
  3. LP pool provides instant wBTC credit
  4. User can use wBTC immediately
  5. As confirmations increase, credit finalizes
  6. LP released after full confirmation

Fee Structure​

ConfirmationsFeeDescription
00.1%Instant credit (highest risk)
1-20.05%Partial confirmation
3-50.02%Near-final
6+0%Fully confirmed

Using InstaWrap​

Deposit (Wrap)​

# Get your unique deposit address
rp1d query instawrap deposit-address \
  --chain bitcoin \
  --recipient $(rp1d keys show my-wallet -a)

# Output: bc1q... (send BTC here)

Check Deposit Status​

rp1d query instawrap deposit \
  --tx-hash <bitcoin_tx_hash>

Withdraw (Unwrap)​

rp1d tx instawrap withdraw \
  --chain bitcoin \
  --amount 0.1wbtc \
  --destination bc1q... \
  --from my-wallet

TypeScript SDK​

import { InstaWrap } from '@rp1/sdk';

const bridge = new InstaWrap(client);

// Get deposit address
const depositAddr = await bridge.getDepositAddress({
  chain: 'bitcoin',
  recipient: wallet.address,
});

// Check deposit status
const status = await bridge.getDepositStatus(btcTxHash);
console.log(`Status: ${status.status}`);
console.log(`Confirmations: ${status.confirmations}`);
console.log(`Instant: ${status.instant}`);

// Withdraw
const tx = await bridge.withdraw({
  chain: 'bitcoin',
  amount: '10000000', // 0.1 BTC in satoshis
  destination: 'bc1q...',
});

Liquidity Providers​

Provide Liquidity​

LPs earn fees from instant credit:

rp1d tx instawrap provide-liquidity \
  --amount 100000000wbtc \
  --from my-wallet

Withdraw Liquidity​

rp1d tx instawrap withdraw-liquidity \
  --amount 50000000wbtc \
  --from my-wallet

LP APY​

AssetCurrent APYVolume (24h)
wBTC5-15%Varies
wETH3-10%Varies
wSOL4-12%Varies

Message Types​

MsgDeposit​

message MsgDeposit {
  string sender = 1;
  string chain = 2;
  bytes tx_hash = 3;
  bytes proof = 4;
}

MsgWithdraw​

message MsgWithdraw {
  string sender = 1;
  string chain = 2;
  cosmos.base.v1beta1.Coin amount = 3;
  string destination = 4;
}

Parameters​

ParameterDefaultDescription
instant_credit_enabledtrueEnable 0-conf credits
instant_threshold100000000Max instant amount (satoshis)
max_instant_credit1000000000Maximum instant credit
base_fee0.0010.1% base fee

Events​

EventTypeDeposit = "instawrap_deposit"
EventTypeInstantCredit = "instawrap_instant_credit"
EventTypeWithdraw = "instawrap_withdraw"
EventTypeLiquidityProvided = "instawrap_lp_provided"

Security​

Double-Spend Protection​

If the source chain transaction is double-spent:

  1. Credit is revoked
  2. User's wBTC burned
  3. If already spent, becomes "bad debt"
  4. LP compensated from insurance fund

Oracle Verification​

// Multiple relayers must confirm deposit
type DepositProof struct {
    TxHash       []byte
    BlockHash    []byte
    MerkleProof  []byte
    Signatures   []ValidatorSignature // 2/3+ required
}

Next Steps​