Last updated 3 months ago
Cardano native tokens lack seamless integration with Ethereum - crypto's dominant DeFi platform - creating liquidity siloes, user + developer friction, and ecosystem growth constraints.
Upgrade Charms with Ethereum compatibility, letting CNTs become fully portable to Ethereum as ERC-20s. Likewise, any ERC-20 token may be seamlessly transported to Cardano as a CNT.
Please provide your proposal title
Ethereum X Cardano Asset Transfers Via Charms Protocol
Enter the amount of funding you are requesting in ADA
200000
Please specify how many months you expect your project to last
6
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Cardano native tokens lack seamless integration with Ethereum - crypto's dominant DeFi platform - creating liquidity siloes, user + developer friction, and ecosystem growth constraints.
Supporting links
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
Yes
Please provide details on the intellectual property (IP) status of your project outputs, including whether they will be released as open source or retained under another licence.
MIT / Apache 2.0 dual license
Please choose the most relevant theme and tag related to the outcomes of your proposal
Cross-chain
Describe what makes your idea innovative compared to what has been previously launched in the market (whether by you or others).
Existing cross-chain bridges rely on multisigs, committees, and custodians, and require third-party oracles or consensus layers to handle cross-chain asset movement, creating trust assumptions and security risk. They also typically reserve support for handpicked popular assets like ADA, or stablecoins like USDT and USDC.
Charms is fundamentally different: a protocol for client-side validated multi-chain tokens whose full transaction history is proven with recursive ZK-proofs. Charms protocol requires no indexers - cross chain movements for native charms require no wrapping and can be facilitated entirely with user run software, hence making such movements “trustless.”
Wrapping only comes into play when converting from CNTs to Charms on Cardano, or from ERC20s to Charms on Ethereum. Charms as CNTs (already implemented) and Charms as ERC20 (subject of this proposal) are represented natively. These contracts are controlled by programmable logic and blockchain consensus – nothing more. They allow any ERC20 or CNT to become a charm.
Therefore, Charms act as an asset rail that can “beam” any ERC20 to Cardano, and any CNT to Ethereum – not just a handpicked few.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
Our prototype will show how charms can be transferred to the Ethereum chain and converted into ERC20 tokens using a special conversion contract. It will allow Charms users on Bitcoin or Cardano to send their charms tokens to Ethereum, which will include both native charms and CNTs. A webpage to do so will be available on our website https://charms.dev.
Describe realistic measures of success, ideally with on-chain metrics.
It is possible to beam arbitrary tokens or NFTs from Cardano to Ethereum or vice versa
Volume of transactions beaming assets between Ethereum and Cardano
Volume of activity for cross-chain assets (ex. SNEK on Ethereum, USDT on Cardano, etc)
Fees generated through Beaming contracts
Feedback from Cardano and Ethereum developer communities
Please describe your proposed solution and how it addresses the problem
Charms is a chain-agnostic, client-side validated asset standard powered by recursive zero-knowledge proofs. It enables tokens to exist natively on multiple UTXO blockchains without bridges or custodial intermediaries, by tracking the full state transition history of an asset—across any number of blockchains—in a single, verifiable proof.
Charms is already live on Bitcoin and Cardano, and will very soon be made backward compatible with Cardano CNTs. It allows any charm on Bitcoin to move to Cardano as a CNT, or vice versa, without custodial intermediaries. Charms is in late-stage development as a protocol rail for moving assets and liquidity between both blockchains, including zkBTC - BOS’ institutional-grade wrapper converting BTC into a charm, opening Cardano to cryptographically secure BTC liquidity.
We seek funding to also integrate the Charms protocol with the Ethereum blockchain. This includes construction of a “proxy” token contract for Ethereum (a charms conversion contract into ERC-20 tokens).
Please define the positive impact your project will have on the wider Cardano community
Integrating Charms with Ethereum has a transformational impact on the Cardano ecosystem, creating new liquidity pathways, new developer opportunities, and a strategic advantage that no other chain currently offers. As the first and largest smart contract chain with the most widely adopted token standard, enabling universal, trustless token interoperability with Ethereum will create more opportunities for Cardano to absorb liquidity from other chains, including stablecoin liquidity.
Every Cardano Native Token (CNT) gains trustless access to Ethereum’s massive liquidity, creating larger markets for Cardano tokens, more trading volume for Cardano-native assets, and increased usage and visibility for the broader community
Every Cardano asset can live as an ERC20 token, making it compatible with dApps, wallets, or exchange supporting the ERC20 standard
Cardano will attract developers looking for multi-chain reach, knowing it is safe to build a CNT and be compatible under the popular ERC20 standard later.
Reduces risk of bridges for the entire ecosystem, presenting a more secure model for universal cross chain transfers.
Popular ERC20 tokens can move into Cardano’s ecosystem, including long sought after stablecoins like USDT and USDC. Ethereum asset holders looking for a more secure DeFi experience will have no issue moving their tokens to Cardano instead.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
Charms Inc. has created the Charms protocol, a metaproocol for mapping tokens onto UTXOs on Bitcoin and other UTXO chains inspired by Cardano’s eUTXO architecture. The team has publicly demonstrated a bridgeless transfer of charms to Cardano, and will also showcase the arrival of the first charm - $BRO - on Cardano as a CNT, first through a trusted setup. Charms Inc. CEO Ivan Mikushin is a software engineer with 25+ years of experience in enterprise, infrastructure, systems, zero-knowledge cryptography and blockchain software development. Team members are well known within the Cardano community.
BOS (aka BitcoinOS) is the project that has ignited the Bitcoin interoperability discourse on Cardano during Cardano Summit 2024. BOS delivered the first onchain ZK proof verification on Bitcoin.
Milestone Title
High-level design of Charms Ethereum support.
Milestone Outputs
A highl-level design document for Charms Ethereum integration, including:
Acceptance Criteria
Evidence of Completion
Delivery Month
1
Cost
20000
Progress
10 %
Milestone Title
Mock Charms ERC20 proxy contract, mock proofs generated with Charms CLI.
Milestone Outputs
Charms CLI includes commands to produce Ethereum transactions manipulating ERC20 tokens corresponding to Charms tokens with mock Charms proofs. Charms CLI can also extract (and verify the proof of) the Charms spell from serialized Ethereum transactions.
Acceptance Criteria
A released version of Charms CLI contains the following functionality:
Evidence of Completion
One of: publicly accessible documentation page clearly explains how to do the steps in the Acceptance Criteria and anyone is able to replicate them OR a short video demonstrating the steps in the Acceptance Criteria
Delivery Month
3
Cost
60000
Progress
30 %
Milestone Title
Transfers of Charms tokens / CNTs from Cardano to Ethereum.
Milestone Outputs
Charms tokens can be minted on Ethereum as ERC20, ERC721/ERC1155 tokens (with real proofs). The token contract is an upgradable (proxy) contract forward-compatible with future versions of the Charms protocol.
Acceptance Criteria
A released version of Charms CLI can be used to mint a Charms token on Ethereum mainnet:
Evidence of Completion
One of: publicly accessible documentation page clearly explains how to do the steps in the Acceptance Criteria and anyone is able to replicate them OR a short video demonstrating the steps in the Acceptance Criteria
Delivery Month
5
Cost
40000
Progress
20 %
Milestone Title
Transfers of Charms tokens / CNTs back from Ethereum to Cardano.
Milestone Outputs
Charms (as CNTs on Cardano) beamed to Ethereum (as ERC20, ERC721/ERC1155 tokens) can be beamed back to Cardano as CNTs using Charms CLI. When beaming back to Cardano, the Ethereum tokens are burned and CNTs are minted.
Acceptance Criteria
Evidence of Completion
One of: publicly accessible documentation page clearly explains how to do the steps in the Acceptance Criteria and anyone is able to replicate them OR a short video demonstrating the steps in the Acceptance Criteria.
Delivery Month
6
Cost
20000
Progress
10 %
Milestone Title
Transfers of native ERC20 as Charms to Cardano as CNTs and back.
Milestone Outputs
A native ERC20 token (e.g. USDT) can be beamed to Cardano (as a CNT). When this happens, the ERC20 is locked on Ethereum and minted as a Charms CNT on Cardano. When beaming back to Ethereum, the Charms CNT is burned, and the original ERC20 is unlocked.
Acceptance Criteria
Evidence of Completion
One of: publicly accessible documentation page clearly explains how to do the steps in the Acceptance Criteria and anyone is able to replicate them OR a short video demonstrating the steps in the Acceptance Criteria
Delivery Month
9
Cost
20000
Progress
10 %
Please provide a cost breakdown of the proposed work and resources
Ethereum support in Charms CLI / proving server - 100k ADA
Upgradeable ERC20 Charms proxy token contract - 100k ADA
How does the cost of the project represent value for the Cardano ecosystem?
This proposal delivers outsized, ecosystem-wide value for a modest cost by unlocking trustless interoperability between Cardano and Ethereum—a capability no protocol offers today.
The requested funding directly produces long-lived public goods:
A secure alternative to bridges, reducing risk for users and dApps across the ecosystem
An open source protocol providing universal cross chain support for Cardano native tokens
Rails for Ethereum liquidity to trustlessly migrate into the Cardano ecosystem
These deliverables are not one-off experiments—they become permanent infrastructure underpinning Cardano’s future as a trustless interoperability hub.
I confirm that evidence of prior research, whitepaper, design, or proof-of-concept is provided.
Yes
I confirm that the proposal includes ecosystem research and uses the findings to either (a) justify its uniqueness over existing solutions or (b) demonstrate the value of its novel approach.
Yes
I confirm that the proposal demonstrates technical capability via verifiable in-house talent or a confirmed development partner (GitHub, LinkedIn, portfolio, etc.)
Yes
I confirm that the proposer and all team members are in good standing with prior Catalyst projects.
Yes
I confirm that the proposal clearly defines the problem and the value of the on-chain utility.
Yes
I confirm that the primary goal of the proposal is a working prototype deployed on at least a Cardano testnet.
Yes
I confirm that the proposal outlines a credible and clear technical plan and architecture.
Yes
I confirm that the budget and timeline (≤ 12 months) are realistic for the proposed work.
Yes
I confirm that the proposal includes a community engagement and feedback plan to amplify prototype adoption with the Cardano ecosystem.
Yes
I confirm that the budget is for future development only; excludes retroactive funding, incentives, giveaways, re-granting, or sub-treasuries.
Yes
I Agree
Yes
Ivan Mikushin – CEO, Charms Inc.
Core developer of BRO, Charms libraries, and Cardano integrations.
Gadi Guy– CTO, BOS
Author of Charms to ERC20 smart contract.