Immutable X
Immutable X is a Layer-2 scaling solution, that was launched in April 2021 while focusing primarily on NFTs.
"Through Immutable X, its layer-two scaling solution, Immutable aims to promote mainstream NFT adoption by offering gas-free minting and trading, self custody alongside seamless UX for developers and consumers. Immutable X is also ensuring any NFT activity on the protocol is completely carbon neutral by purchasing carbon credits to offset gas consumed on Ethereum." [1]
Currently, Immutable is most famous for its trading card game Gods Unchained, and has a TVL about roughly $50m. The current numbers can be found here [2].
The Immutable X ecosystem is powered by the $IMX token, which is used to pay for fees, take part in governance votes and can be staked to earn a share of the rewards pools.
How does Immutable X work?
Immutable is build on StarkEx from Starkware. It is using a technology called Zero-Knowledge rollups (zk-rollups). As other scaling solutions, they combine a large number of individual transactions and submit them in one transaction to the Ethereum mainchain. In contrast to Optimistic rollups, zk-rollups do not assume that every transaction is valid until proven otherwise but instead prove it instantly by using so-called validity proofs [3].
"Using validity proofs means that once a proof has been accepted on-chain, users have immediate confirmation that those transactions were valid and are now immutable. In an NFT context, this solves both the problems identified with optimistic rollups above: users can withdraw immediately and no-one is able to attack the system, regardless of the amount of funds flowing through the system." [4]
How to use Immutable X?
Immutable X positions itself more like a platform for other decentralized applications instead of a sidechain, where the user needs to move funds to in order to use the applications that are build on top of it. Thus, there exists a third-party marketplace ecosystem that allows user to connect with their existing wallets. To use this marketplace, you are required to register as a user.
How to build on Immutable X?
To integrate an application into the Immutable X ecosystem, there exists a dedicated SDK to make use of. The detailed guidance can be found here.
IMX Token Info
Immutable X has its one token IMX, which serves as Governance and Utility token within the ecosystem. While the governance is handled via Snapshot votes, the utility for IMX is provided by the fact, that 20 % of the protocol fees for every transaction need to be paid in IMX token. Moreover, these fees are collected in a dedicated rewards pools and shared between all IMX stakers. Additionally, there exist certain Play-To-Earn initiatives to encourage active users of the protocol to get some IMX as rewards [5].
Smart Contract address: 0xF57e7e7C23978C3cAEC3C3548E3D615c346e79fF [6]
Risk Summary
Our friends from L2beat offer a great summary of the associated risks of Immutable X [7]:
Funds can be stolen if...
a contract receives a malicious code upgrade. There is a 14 days delay on code upgrades.
Funds can be lost if...
the external data becomes unavailable,
the proof system is implemented incorrectly.
Users can be censored if...
the committee restricts their access to the external data,
the operator refuses to include their transactions. They can still exit the system.
MEV can be extracted if...
the operator exploits their centralized position and frontruns user transactions.
References
Immutable X, https://www.immutable.com/token
Contributors
| Discord Handle | ETH Address | Reward | Comments |
|---|---|---|---|
Matt | CMK#9019 | mattropolis.eth | 0 $CMK (internal) | Create |
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