ChannelForge

1. Project Overview

Project Name

ChannelForge — Fiber Liquidity Readiness Engine

One-Sentence Summary

ChannelForge is an open-source Fiber infrastructure layer that helps payment applications determine whether a specific payment can be successfully received, identify liquidity shortages, recommend the minimum intervention required, and verify when the destination becomes payment-ready.

Project Type

Developer Tool · Payment Infrastructure · Ecosystem Infrastructure


2. Team Profile

Core Member

Wilson Momanyi Okeyo

Role: Blockchain Developer / CKB & Fiber Ecosystem Builder

Experience:

  • blockchain application development

  • blockchain infrastructure

  • developer tooling

  • smart contract development

  • Web3 ecosystem development

  • technical education and developer-focused initiatives

  • open-source blockchain projects

ChannelForge will initially be developed as an individual-led open-source project. The resulting code, documentation, tests, and demonstration will be publicly available to developers building on CKB and Fiber.


3. Project Background

Problem

Fiber provides fast, multi-asset payments through off-chain payment channels and multi-hop routing.

However, the existence of a payment route does not necessarily mean that the destination has enough usable inbound liquidity to receive the required payment amount.

For example, a merchant may need to receive:

50,000 RGB++ USDT

The Fiber network may have:

Connected peers
Supported asset
Available payment routes

But the merchant may only have:

31,700 usable inbound liquidity

The payment may therefore be unable to complete even though the merchant is connected to the network and a route appears to exist.

This creates a gap between:

Finding a payment route

        ↓

Having enough usable liquidity

        ↓

Being ready to receive the payment

Developers building payment applications currently need to reason about several variables themselves, including:

  • channel state

  • asset support

  • inbound and outbound liquidity

  • route availability

  • payment amount

  • routing costs

  • liquidity constraints

  • possible rebalancing actions

This makes it difficult to build applications that can predict whether a payment will actually succeed before attempting it.

The problem is especially relevant for:

  • merchants

  • wallets

  • payment processors

  • RGB++ applications

  • stablecoin applications

  • Fiber service providers

  • automated payment systems

The missing abstraction is not another payment route.

It is payment liquidity readiness.

Ecosystem Relevance

As Fiber expands its multi-asset payment capabilities, applications need better ways to understand whether liquidity is available where a payment needs to arrive.

ChannelForge introduces a simple application-level question:

Can this destination receive
this exact payment right now?

If the answer is no, ChannelForge should provide:

How much liquidity is missing?

        ↓

What intervention could resolve the shortage?

        ↓

Is the destination ready after the intervention?

This turns liquidity from something developers discover through failed payments into something they can analyze proactively.


4. Solution

Overview

ChannelForge is a browser/API-accessible and open-source infrastructure layer that turns Fiber’s channel and routing state into a programmable liquidity-readiness engine.

The project does not attempt to replace Fiber’s existing payment, routing, channel, or liquidity mechanisms.

Instead, it provides the missing application-level layer between Fiber’s network primitives and payment applications.

The first version focuses on:

Observe

   ↓

Analyze

   ↓

Recommend

   ↓

Verify

The Spark milestone will focus on four core components:

  1. Payment Liquidity Intent

  2. Liquidity Readiness Engine

  3. Liquidity Intervention Recommendation

  4. Payment-Ready Verification


Deliverable 1: Payment Liquidity Intent

Final Form

A machine-readable interface through which an application can specify exactly what liquidity it requires.

Example:

Payment Liquidity Intent

Asset:
RGB++ USDT

Destination:
Merchant Node

Required Amount:
50,000

Payment Deadline:
10 minutes

Maximum Cost:
0.5%

Minimum Readiness:
95%

Purpose

Instead of simply asking whether a destination is connected, applications can describe a concrete payment requirement.

ChannelForge uses this requirement as the input for its liquidity analysis.

Core Parameters

The initial specification will support:

  • asset

  • destination

  • required amount

  • payment deadline

  • maximum acceptable cost

  • minimum readiness requirement


Deliverable 2: Fiber Liquidity Readiness Engine

Final Form

A Fiber-integrated engine that analyzes relevant channel and routing conditions and determines whether the requested payment is currently feasible.

Example:

PAYMENT LIQUIDITY ANALYSIS

Required:
50,000

Usable inbound liquidity:
31,700

Liquidity deficit:
18,300

Best available route:
3 hops

Estimated cost:
0.18%

Status:
NOT PAYMENT-READY

Purpose

The engine converts raw Fiber network information into an application-friendly readiness result.

Core Features

The engine will analyze:

  • channel state

  • asset availability

  • destination connectivity

  • usable inbound liquidity

  • potential payment routes

  • liquidity requirements

  • estimated payment cost

  • payment-readiness conditions


Deliverable 3: Liquidity Intervention Recommendation

Final Form

When sufficient liquidity is not available, ChannelForge will provide an actionable recommendation.

Example:

PAYMENT LIQUIDITY ANALYSIS

Required:
50,000

Available:
31,700

Deficit:
18,300

Recommended intervention:
Circular rebalance

Expected liquidity:
50,000+

Status:
INTERVENTION REQUIRED

The MVP will focus on recommendation rather than autonomous fund movement.

This makes the first version safer and more achievable within the grant period.

The system will explain what liquidity is missing and what Fiber-compatible action could potentially resolve the shortage.

Future versions could extend this into:

Observe
   ↓
Analyze
   ↓
Recommend
   ↓
Execute
   ↓
Verify


Deliverable 4: Payment-Ready Verification

Final Form

After liquidity conditions change, ChannelForge will evaluate the original Payment Liquidity Intent again.

Example:

PAYMENT READY ✓

Required:
50,000

Usable inbound liquidity:
52,400

Best route:
3 hops

Estimated cost:
0.18%

Status:
READY

Purpose

Liquidity conditions can change dynamically.

ChannelForge therefore needs to verify that an intervention has actually produced the required payment conditions instead of assuming that the problem has been solved.


Core Workflow

Payment Liquidity Intent

        ↓

Fiber Network Analysis

        ↓

Liquidity Deficit Detection

        ↓

Intervention Recommendation

        ↓

Liquidity State Changes

        ↓

Payment-Ready Verification

        ↓

Payment


5. Technical Approach

Technology Stack

Core Engine:

Rust / Fiber-compatible infrastructure

Fiber Integration:

Fiber network and channel interfaces

Developer Interface:

CLI and API interface

Testing:

Fiber test environment and simulated payment scenarios

Documentation:

Markdown-based developer documentation

Deployment:

Public GitHub repository and reproducible demonstration environment


Architecture Overview

                    Fiber Network

                         │
             ┌───────────┴───────────┐
             │                       │
          Channels                 Routes
             │                       │
             └───────────┬───────────┘
                         ↓
                  ChannelForge
                         │
        ┌────────────────┼────────────────┐
        │                │                │
        ↓                ↓                ↓
 Liquidity Analysis  Route Analysis  Readiness Engine
        │                │                │
        └────────────────┼────────────────┘
                         ↓
                Intervention
                 Recommendation
                         │
                         ↓
                 Payment Ready


Key Technical Challenges

1. Modeling Usable Inbound Liquidity

Challenge:

A channel’s total capacity does not necessarily represent the amount that can currently be used to receive a particular payment.

Solution:

ChannelForge will analyze the relevant Fiber channel state and determine the usable liquidity available toward the destination for the requested asset and payment amount.


2. Determining Payment Readiness

Challenge:

A route may exist while the available liquidity is insufficient for the actual payment.

Solution:

ChannelForge will evaluate the complete Payment Liquidity Intent against current liquidity and routing conditions.

The result will be a clear readiness state:

PAYMENT READY

or:

NOT PAYMENT-READY

together with the relevant reason.


3. Identifying the Liquidity Deficit

Challenge:

A generic payment failure does not tell an application how much liquidity is missing.

Solution:

ChannelForge will calculate the difference between:

Required liquidity

        -

Usable liquidity

and expose the result to developers.

Example:

Required:
50,000

Usable:
31,700

Deficit:
18,300


4. Producing Actionable Recommendations

Challenge:

Identifying a shortage is useful, but developers also need to understand what could resolve it.

Solution:

The recommendation engine will evaluate available Fiber-native liquidity mechanisms and identify an appropriate intervention, such as circular rebalancing where applicable.

The MVP will recommend actions rather than automatically controlling user funds.


5. Verifying Liquidity Changes

Challenge:

Fiber liquidity is dynamic and can change after payments, rebalancing, or channel updates.

Solution:

ChannelForge will re-evaluate the original Payment Liquidity Intent after a liquidity intervention.

The system will only report:

PAYMENT READY

when the defined conditions are satisfied.


6. To-Do List

Week 1: Architecture Design

Tasks:

  • define ChannelForge architecture

  • define Payment Liquidity Intent

  • identify required Fiber network state

  • design liquidity analysis model

  • establish Fiber test environment

Milestone:

ChannelForge architecture and Payment Liquidity Intent specification completed.


Week 2: Fiber Integration

Tasks:

  • integrate Fiber network information

  • integrate channel state

  • implement asset identification

  • establish test scenarios

  • create initial network-state adapter

Milestone:

ChannelForge can retrieve and process the required Fiber network information.


Week 3: Liquidity Analysis Engine

Tasks:

  • implement usable inbound liquidity calculation

  • implement liquidity deficit calculation

  • implement route analysis

  • implement estimated cost analysis

  • create structured analysis output

Milestone:

Working Fiber liquidity analysis engine.


Week 4: Readiness and Recommendation Engine

Tasks:

  • implement Payment Liquidity Intent evaluation

  • implement payment-readiness status

  • implement intervention recommendation logic

  • add edge-case handling

  • build initial CLI/API interface

Milestone:

Working readiness and recommendation system.


Week 5: Verification and Testing

Tasks:

  • implement post-intervention verification

  • test RGB++ scenarios

  • create integration tests

  • test different liquidity conditions

  • test failed and insufficient-liquidity scenarios

  • improve reliability

Milestone:

Complete end-to-end liquidity-readiness workflow.


Week 6: Finalization

Tasks:

  • polish CLI/API

  • complete technical documentation

  • create developer examples

  • prepare public repository

  • produce end-to-end demonstration

  • complete final tests

  • publish MVP

Milestone:

Public ChannelForge MVP release.


7. Required Funding

Total Requested

$1,000 USD

Funding Breakdown

Category Amount
Core liquidity engine development $400
Fiber/RGB++ integration and testing $200
CLI/API implementation $150
Testnet and demonstration infrastructure $100
Documentation and developer examples $100
Testing and final deployment $50
Total $1,000

Justification

The funding supports a focused six-week MVP development cycle.

The project prioritizes:

  • Fiber-native infrastructure

  • payment liquidity analysis

  • RGB++ compatibility

  • measurable technical deliverables

  • developer usability

  • open-source ecosystem value

The project intentionally does not attempt to build a full liquidity marketplace or autonomous liquidity-management system within this grant.

The requested funding is therefore focused on delivering a working and reusable liquidity-readiness infrastructure primitive.


8. Deliverables + How to Verify

Deliverable 1

Payment Liquidity Intent

Format:

Open-source specification and implementation.

Acceptance Criteria:

Developers can define a payment requirement containing:

  • asset

  • destination

  • amount

  • deadline

  • cost constraints

Verification

Steps:

  1. Open the ChannelForge CLI/API.

  2. Create a Payment Liquidity Intent.

  3. Specify an asset, destination, and required amount.

  4. Submit the intent.

Expected Result:

ChannelForge accepts the intent and generates a liquidity analysis request.


Deliverable 2

Fiber Liquidity Readiness Engine

Format:

Open-source code repository.

Acceptance Criteria:

Users can:

  • analyze Fiber channel state

  • identify usable inbound liquidity

  • calculate liquidity deficits

  • analyze potential routes

  • determine payment readiness

Verification

Steps:

  1. Start a Fiber test environment.

  2. Create a payment scenario.

  3. Submit a Payment Liquidity Intent.

  4. Run the ChannelForge analysis.

Expected Result:

The system returns a structured result such as:

Required:
50,000

Usable inbound:
31,700

Liquidity deficit:
18,300

Status:
NOT PAYMENT-READY


Deliverable 3

Liquidity Intervention Recommendation

Format:

Integrated software module.

Acceptance Criteria:

When insufficient liquidity is detected, ChannelForge produces an actionable recommendation.

Verification

Steps:

  1. Create a payment intent requiring more liquidity than currently available.

  2. Run liquidity analysis.

  3. Review the recommendation.

Expected Result:

The system returns:

Liquidity deficit:
18,300

Recommended intervention:
Circular rebalance


Deliverable 4

Payment-Ready Verification

Format:

Integrated verification module.

Acceptance Criteria:

ChannelForge can determine whether the original payment intent becomes satisfiable after liquidity conditions change.

Verification

Steps:

  1. Run an intent with insufficient liquidity.

  2. Apply the recommended liquidity intervention in the test environment.

  3. Run the same intent again.

Expected Result:

Required:
50,000

Usable inbound:
52,400

Status:
PAYMENT READY


Deliverable 5

Documentation and Demonstration

Format:

GitHub repository, technical documentation, and public demonstration.

Acceptance Criteria:

Developers can understand how ChannelForge works and reproduce the core workflow.

Final Evidence

The final report will include:

  • repository link

  • demonstration link

  • architecture documentation

  • API/CLI documentation

  • screenshots

  • test results

  • end-to-end demonstration

  • RGB++ test scenarios

  • development summary


9. Current State vs Funded Work

Current State

Completed:

  • project concept

  • problem analysis

  • Fiber ecosystem research

  • architecture planning

  • liquidity-readiness model

  • Payment Liquidity Intent concept

  • MVP scope definition

The project is currently at the design and architecture stage.

Funded Work

During the Eco Fund development period:

Build:

  • Fiber integration

  • liquidity analysis engine

  • Payment Liquidity Intent implementation

  • payment-readiness engine

  • liquidity deficit calculation

  • intervention recommendation system

  • payment-ready verification

  • CLI/API interface

  • automated tests

  • documentation

  • public demonstration

The funding will move ChannelForge from a defined architecture and concept into a working open-source MVP.


**
10. CKB Alignment**

ChannelForge directly supports the CKB ecosystem by improving the reliability and developer usability of Fiber-based payments.

The project focuses on the intersection of:

  • CKB assets

  • RGB++

  • Fiber payment channels

  • multi-hop routing

  • inbound liquidity

  • merchant payments

  • payment infrastructure

  • developer tooling

The initial implementation will use RGB++ assets as the primary use case, while keeping the underlying architecture sufficiently asset-generic to support other CKB/Fiber assets.

The ecosystem flow is:

CKB / RGB++
      ↓
Fiber
      ↓
Payment Channels
      ↓
Liquidity Analysis
      ↓
Payment Readiness
      ↓
Reliable Payment Applications

ChannelForge does not attempt to replace Fiber’s core payment-channel or routing infrastructure.

Instead, it provides a complementary developer infrastructure layer that helps applications understand one of the most important practical constraints of channel-based payments:

Is there enough usable liquidity at the destination for this payment?

This gives CKB/Fiber developers a higher-level primitive for building:

  • merchant payment systems

  • wallets

  • payment processors

  • RGB++ applications

  • stablecoin payment applications

  • Fiber service infrastructure

  • automated payment applications

The project also provides a natural foundation for future improvements in Fiber liquidity management.

The long-term vision is to make payment liquidity readiness a reusable primitive across the CKB payment ecosystem.

Instead of applications discovering liquidity problems only after a payment fails, they can proactively determine:

Can this destination receive this payment?

        ↓

How much liquidity is available?

        ↓

How much is missing?

        ↓

What intervention is required?

        ↓

Is the destination now ready?

Ultimately:

Fiber provides the payment network.

ChannelForge provides the liquidity intelligence that helps applications know when that network is ready for their payment.

2 Likes

Hi @Okeyo,

Thank you for taking the time to prepare and submit the ChannelForge project proposal to the Spark program.

The committee has completed its review and, following careful discussion, regrets to inform you that the ChannelForge proposal has been temporarily rejected.

We would like to explain publicly the reasons behind this decision:

  1. The project only diagnoses problems without providing solutions:
    ChannelForge does an excellent job of identifying and analyzing liquidity issues in payment channels—including insufficient incoming liquidity, the lack of route availability, and the uncertainty these issues create for payment applications. However, the committee believes that merely analyzing these problems without proposing any concrete solutions has limited practical value for the ecosystem as a whole.

Thank you very much for all the efforts your team has put in. Please keep building, and feel free to contact us anytime if you need anything!

Best regards,
xingtian
On behalf of the Spark Program Committee