Forum: https://forum.inverse.finance/t/proposal-to-enable-chainlink-ccip-cross-chain-transfers-of-sdola/611

Background

This proposal seeks to enable cross-chain functionality for sDOLA tokens using Chainlink's Cross-Chain Interoperability Protocol (CCIP). sDOLA is issued as an ERC-4626 vault token, making it both flexible and portable across different DeFi protocols and applications. The implementation of CCIP cross-chain functionality for sDOLA represents a significant step forward in Inverse Finance's multi-chain strategy. Chainlink CCIP offers a decentralized, secure, and scalable solution for cross-chain communication and asset transfers. This integration will allow sDOLA token holders to transfer their assets seamlessly across Arbitrum, Base, Ethereum, Optimism, and other chains while maintaining exposure to the underlying yield mechanisms. By leveraging Chainlink's proven infrastructure, we can provide users with seamless access to protocol benefits across multiple networks while maintaining the security and decentralization principles core to the Inverse ecosystem.

Motivation

The expansion of sDOLA to multiple chains through CCIP will deliver several key benefits, namely: Enhanced liquidity by enabling seamless token transfers between Ethereum mainnet and L2s, facilitating efficient capital allocation for users and protocols. Improved user experience by providing a unified experience for sDOLA holders regardless of their preferred chain and reduced transaction costs for those operating on L2s Enhanced DOLA stability through fluid cross-chain arbitrage that can quickly correct price discrepancies, compared to native bridging solutions that could leave the peg vulnerable for up to 7 days during periods of imbalance. Expanded protocol integration opportunities with L2-native protocols including DEX’s like Aerodrome, lending markets like Morpho, yield splitting protocols like Pendle, and more. The technical infrastructure will leverage Chainlink's proven security model and decentralized oracle network, implementing a hub-and-spoke architecture with Ethereum as the primary hub while enabling automated exchange rate updates across all supported chains. Implementation Architecture Overview The sDOLA cross-chain integration is built on Chainlink CCIP to provide secure and programmable transfers between Ethereum and supported L2 networks. On Ethereum, tokens are deposited into the canonical LockReleaseTokenPool, where they are locked before a corresponding amount is minted on the destination chain. When sDOLA moves back to Ethereum, the process reverses: tokens on the L2 are burned and the locked amount is released from the pool. Exchange Rate Synchronization Exchange rate synchronization ensures that when sDOLA moves across chains via CCIP, the token’s yield-bearing value remains consistent. The CCIP transfer includes updated exchange rate data, so receipt tokens minted on destination chains accurately reflect the same underlying value as mainnet sDOLA. This prevents drift between chains and preserves parity for users.

Governance and Security

Governance of sDOLA’s CCIP integration is centered on the canonical sDOLA contract on Ethereum and its LockReleaseTokenPool, which locks tokens before issuing cross-chain receipts. Control of the TokenAdminRegistry is delegated to the Inverse Finance governance timelock, ensuring all configuration changes remain under DAO authority. Security is reinforced by Chainlink CCIP’s defense-in-depth architecture, where decentralized oracle networks manage execution, verification, and risk oversight to keep transfers resilient and tamper-proof.

Technical Specifications

This specific proposal will activate deployed code across Ethereum Mainnet, Base, Optimism, Berachain and Arbitrum. The code has already been deployed, but is waiting for governance to take ownership of the govSender contract which controls L2 deployments, as well as CCIP token administration rights, token pool ownership, exchange rate updater ownership and setting the token pool for sDOLA. Once the token pool has been set for sDOLA tokens, CCIP token transfers will be enabled to Base, Arbitrum, Berachain and Optimism. L2s will be using mint/burn token pools with mainnet using a lock/release token pool. To govern contracts on the L2s, governance proxy contracts have been deployed to each respective network, which allow L1 inverse token governance to send messages originating from governance proposals. These messages in turn govern functionality of the smart contracts under its control, similar to how token governance functions on mainnet.

Deployed Contracts

Ethereum:

• governanceSender: 0x4e521Fe7A9084067096d45A312B8FEeE39D5F1f3
• tokenPool: 0x05eEe76f456C51Be0459EC1c0a78bf177B2c877C
• exchangeRateUpdater: 0xd5A3416f7863f306Ca7CD9B12f067FFFd5D57a61

Base:

• governanceProxy: 0x1C064265E053D23d120c518fDBB542e6537f82d1
• tokenPool: 0xd84e1B7e1a7A8D49167884855c3985ef4bCa45aB
• token: 0xCa78ee4544ec5a33Af86F1E786EfC7d3652bf005
• exchangeRateUpdater: 0x7a1e123e41458aabaB8068BFed6010D8f9480898

Optimism:

• governanceProxy: 0xaF956837AF704D825c1FCbE2651D5c3c37AD5289
• tokenPool: 0x8404024d8F74Ad2D20E82c184816B64D4184A018
• token: 0xfc63C9c8Ba44AE89C01265453Ed4F427C80cBd4E
• exchangeRateUpdater: 0xCa78ee4544ec5a33Af86F1E786EfC7d3652bf005

Arbitrum:

• governanceProxy: 0x607bCd974bB69C78eCdbf0B68748B791bBa24d94
• tokenPool: 0xbbc28DB61DF26B76D5F7D5Eed17eD4D6C278460e
• token: 0x7a1e123e41458aabaB8068BFed6010D8f9480898
• exchangeRateUpdater: 0x93685185666c8D34ad4c574B3DBF41231bbfB31b

Berachain:

• governanceProxy: 0x1992AF61FBf8ee38741bcc57d636CAA22A1a7702
• tokenPool: 0x8Bbd036d018657E454F679E7C4726F7a8ECE2773
• token: 0x02eaa69646183c069FC2B64F15923F27B9CF3b03
• exchangeRateUpdater: 0xDE1697A5da5d06904C9755E3FC287D215579Daf0

On-chain actions

Action 1:

Accept ownership of sDOLA token in CCIP Token Admin Registry(0xb22764f98dD05c789929716D677382Df22C05Cb6) by calling acceptAdminRole with sDOLA address.

Action 2:

Accept ownership of sDOLA tokenPool by calling acceptOwnership() on tokenPool address(0x05eEe76f456C51Be0459EC1c0a78bf177B2c877C);

Action 3:

Set tokenPool for sDOLA by calling setPool(sDOLA, tokenPool) on tokenAdminRegistry

Action 4:

Accept ownership of govSender(0x4e521Fe7A9084067096d45A312B8FEeE39D5F1f3) on mainnet

Action 5:

Accept ownership of ExchangeRateUpdater(0x4e521Fe7A9084067096d45A312B8FEeE39D5F1f3) on mainnet.