MGP 20: $19K to Connext for CF/Magmo Audit
Contact : Arjun Bhuptani (

Donation Address: 0x60623112855dfeD72b48ed472E84d3b12ABa0EEF


$19k (116 Shares) for audit for unified state channel framework:
  • “Merging” of existing (unaudited) Counterfactual and Magmo frameworks
  • Integrated into Connext’s v2.0 and will be used by 20+ orgs in the space within next two months such as Metamask, Infura, WalletConnect, etc.
  • Code frozen and modular - any future updates will be additive only
  • $10K to Provide and $9k to Decenter for completion on a 2 week timeline
  • Audits were started on 12th of August


  • Adjudicator contracts to be audited:
  • Funding protocol contracts to be audited:
  • CF node (offchain protocols for above): 

Background on Connext/CF/Magmo/Prototypal

  • Connext is an open channel network being built on Ethereum that has been live on mainnet with a single-node system since January 2019.  
  • Counterfactual is an open source, modular framework being developed by L4 Ventures which lets state channel users plug in “apps” and extend their channels to many different usecases. 
  • Magmo is a framework for state channels which optimizes the user experience of state progression within a channelized app by modeling them as Force Move Games. 
  • Prototypal is a company working closely with L4 that is building developer tooling for building and testing channelized applications.

For the past two months, the above organizations have been working towards a unified state channel framework which takes the best of every approach to create one standardized system that all Ethereum projects can use. A unified framework allows us to have consistent client interfaces and seamless channel interoperability, setting the basic building blocks for interoperable state channel networks.


  1. Work at the contract layer for this unified framework is complete. Code is frozen, and any future changes (>6mo timeline) should only be additive - even for Connext’s decentralized multihop network. Contracts are also gas optimized:
  • 167k gas for multisig deploy (one time, can be done at end)
  • Normal eth/erc20 tx for deposit
  • 34k gas for withdraw
  1. Connext expects to put these contracts onto mainnet within the next two weeks in order to meet the needs of users for EthBerlin along with prominent projects in the ecosystem that want to integrate within a 2 month timeline. (see appendix)
  1. This unified framework will not only be used immediately by Connext, but will also become the standard for building any sort of channelized application on Ethereum because of its flexibility, modularity, and support from the EF + channels organizations.

Prior Funding

  1. The teams received an EF grant for this work, with an expected completion of additionally merging offchain infrastructure by Devcon. A total of $300k was granted, with $100k each going to CF/Magmo for core framework consolidation and $50k each to Connext/Prototypal for supporting work and contribution.
  1. Unfortunately, the above grant does not account for audit cost. This is largely because:
  1. The contract consolidation work happened much faster than originally planned in the EF grant application in order to meet Connext’s timeline
  1. The EF grant negotiation, submission and review process took a very long time, during which the situation changing pretty dramatically
  1. Adding in audit cost proved to be too much of a coordination burden to be in scope for this grant once the above had occurred

Use of Funds

Funds will go towards:
  1. $10K: Contract audit with Provide ( -  infrastructure company that has extensive experience in security and wishes to use Connext (including these contracts) for their enterprise payments product.
  1. $9K: Contract audit with Decenter
Because of time sensitivity (and we only just got EF decision), audit was started on 12th of August.


Projects that are ok with us publicly disclosing their upcoming Connext integrations in the next 2 months: