InkEnvelope

A wrapper of heterogenous assets from various originating networks or systems, secured with end-to-end governance integrity.

The key to INK’s customizability and flexibility is its ability to wrap any bundle of assets or financial products, and any information regarding them, into one token. The key construct that makes this abstraction possible is InkEnvelope, which removes the complexity of bundling any variety of assets, while preserving their descriptive information and adding a novel layer of programmability, while allowing it to be seamlessly plugged into the world of DeFi applications.

Below is the illustration of InkEnvelope’s information composition:

Illustration of InkEnvelope Blueprint

As can be seen, the power of InkEnvelope goes far beyond just minting tokens. It encompasses critical information associated with an asset, such as insurance, appraisal, deeds, licensing rights, and so on, all assured by the integrity of the governance process.

In the future, a ZKP-based system can be adopted to achieve privacy-protected asset verification and custody, provided that the asset originating systems can support programmability. This solution also works well if the target assets originate from an enterprise blockchain or other Web2 platforms, which require access permission for information that should be proved to exist but mustn’t be revealed. The InkEnvelope blueprint provides such a placeholder for storing and accessing such sensitive information.

Tokens wrapped with InkEnvelope can be non-fungible (NFT) or fungible (FT), compatible with any mainstream wallet and DeFi facilities. It can be used as a DAO’s treasury asset, collateral for borrowing, or component of investment portfolios, gaining the benefits of uniformity and liquidity on any blockchain facility.

The INK Products Module uses the InkEnvelope to:

• Execute a DAO’s asset adoption resolution, by encoding the entire setup-approval process detail into InkEnvelope, including any physical or cross-chain clearing authorities, as well as the rules as proposed and approved;

• Create new financial products that are collateralized (or backed) by other InkEnveloped assets, such as investment funds or loans. These bespoke financial products can then be made available to investors through “fund launch” or “product launch”, which can support use cases such as regulated security token offer, crowdfunding, or other asset management operations;

• Distribute investment returns or redemptions;

• Process any descriptive information regarding the asset or the financial product on the local blockchain (“peek into the InkEnvelope”), removing any opaqueness surrounding the asset or product;

InkEnvelope removes the opaque nature of generic tokens with the bonded clearing authorities and full descriptive power for on-chain processing, while preserving their on-chain tradability and descriptivity. It paves the way for the credit-based DeFi regime, where the sole reliance on selling generic “utility token” for fundraising will be the past.