Muse Product Design — Wrap/Burn

Muse Finance Official
2 min readJul 19, 2021

Technical Architecture

Muse Wrapper: this is the core function of Muse Finance as described in the technology part and the illustration is as below:

This is the bridge function between non-ERC 20 assets and Ethereum ecosystem, and by expanding beyond the bridge function, Muse Wrap, to unlock the liquidity of the ERC20 staked asset class, and jointly contribute to the better Ethereum ecosystem.

The above figure presents the high level architecture of the Muse.Wrap This design addresses the use case as aforementioned that allows users to to transform their ADA, the native token in the Cardano network, into mADA, an ERC20 token. All the operations are done automatically without any human interaction, as well as human interference. This follows the basic principle of the blockchain world: decentralization. In which no single entity could control the operations of the system. All the transactions are logged and could be verified any time by the public community.

All components in the architecture are briefly described in the subsequent paragraphs with Cardano (ADA) as example.

● ADA wrapping portal: is the dApp for ADA holders to wrap/redeem ADA/mADA.

● Cardano chain: is the Cardano public blockchain. In this design, Cardano is a representative for a source chain, which could be replaced by (almost) any chains in practices.

● Deposit wallets: are to keep stakeholders’ deposits. The wallets will release ADA to stakeholders when mADA is burnt.The private key of the deposit wallet is controlled by a committee.

● ADA relayer: listens to depositing transactions in the Cardano network to initiate the minting process.

● Muse Wrapping contracts: are the smart contracts for issuing mADA token, and managing the various operations regarding to mADA token e.g., minting, burning

● Cardano light client: listens to burning events of mADA to release ADA token to user wallets.

● Staking pools: are lists of third-parties that provide staking service. The Muse Wrap will stake user deposited tokens to these pools to generate rewards. As of now, only delegated staking is considered. This means the staking assets are still under control of the Muse Wrap, not staking pools.



Muse Finance Official

Muse Finance is Decentralised Finance Platform where staking users can receive staking rewards and benefits through wrapper, swap and lending simultaneously.