Investigate Marker movement(restricted markers especially)via ibc protocol(marker-ics20 for now) based on cosmwasm design

[arnabmitra]

Summary

This is a task to POC/investigate send markers(including restricted markers) via ics-20 between chains Based on this writeup

Several threads here i think:

• https://github.com/CosmWasm/cosmwasm/blob/main/IBC.md#writing-new-protocols seems like this is similar to what we want with a marker-ics20 protocol
• In order to enable IBC communication, a contract must expose the following 6 entry points. Upon detecting such an "IBC-Enabled" contract, the x/wasm runtime will automatically bind a port for this contract (wasm.), which allows a relayer to create channels between this contract and another chain. Once channels are created, the contract will process all packets and receipts. Seems this is what we want for the marker-ics20 protocol i think

These hold even if we want to do the same via ica i think

Problem Definition

Why do we need this feature? IBC transfers will be completely impossible after v1.13 and there is some desire to move them around between chains, see #1093 Also markers should be created with certain restrictions on the destination chains for e.g MINT/BURN should be disabled on destination chain marker etc

Proposal

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[arnabmitra]

hackmd based on discussions https://hackmd.io/3fwzGtlbRRGiaBAUdZyyGg

[iramiller]

Also #1425

[Taztingo]

It may be worth investigating if it's better to do something like this as Middleware.

[iramiller]

Seems like adding this to the ibchooks module we recently added makes the most sense. The memo payload on a transfer should ensure that basic transfer permissions are copied over and that the destination IBC chain has a marker created with no mint/burn capabilities and an appropriate denom that indicates the token came in over ibc.

[nullpointer0x00]

To clarify, we would be using the marker's ibc transfer endpoint / MsgIbcTransferRequest to construct the memo and do the transfer?

[iramiller]

No ... we would use middleware that intercepts any transfer port movement of tokens and appropriately attaches a memo for both regular and restricted markers.