feat(bridge): add synor-bridge crate for cross-chain interoperability

Phase 14: Interoperability & Privacy enhancements

New synor-bridge crate with Ethereum lock-mint bridge:
- Bridge trait for generic cross-chain implementations
- Vault management with daily limits and pause controls
- Transfer lifecycle (pending → confirmed → minted)
- Multi-relayer signature verification
- Wrapped token minting (ETH → sETH, ERC20 → sERC20)
- Burn-unlock flow for redemption

Also fixes synor-ibc lib.rs exports and adds rand dependency.

21 tests passing for synor-bridge.

Cargo.toml

@@ -16,6 +16,7 @@ members = [
     "crates/synor-mining",
     "crates/synor-zk",
     "crates/synor-ibc",
+    "crates/synor-bridge",
     "crates/synor-privacy",
     "crates/synor-sharding",
     "crates/synor-verifier",

crates/synor-bridge/Cargo.toml

@@ -0,0 +1,43 @@
+[package]
+name = "synor-bridge"
+version.workspace = true
+edition.workspace = true
+authors.workspace = true
+license.workspace = true
+description = "Cross-chain bridge infrastructure for Synor blockchain"
+
+[dependencies]
+synor-types = { path = "../synor-types" }
+synor-crypto = { path = "../synor-crypto" }
+synor-ibc = { path = "../synor-ibc" }
+
+# Serialization
+serde = { workspace = true }
+serde_json = { workspace = true }
+borsh = { workspace = true }
+
+# Cryptography
+sha2 = "0.10"
+sha3 = { workspace = true }
+blake3 = { workspace = true }
+rand = { workspace = true }
+
+# Ethereum compatibility
+alloy-primitives = { version = "0.8", features = ["serde"] }
+alloy-sol-types = "0.8"
+
+# Async runtime
+tokio = { version = "1", features = ["full"] }
+async-trait = "0.1"
+
+# Utilities
+thiserror = { workspace = true }
+hex = { workspace = true }
+parking_lot = { workspace = true }
+tracing = "0.1"
+chrono = { workspace = true }
+
+[dev-dependencies]
+tokio-test = "0.4"
+proptest = { workspace = true }
+tempfile = { workspace = true }

crates/synor-bridge/src/ethereum.rs

@@ -0,0 +1,808 @@
+//! Ethereum Bridge Implementation
+//!
+//! Lock-Mint bridge for Ethereum assets:
+//! - ETH → sETH (wrapped ETH on Synor)
+//! - ERC-20 → sERC20 (wrapped tokens)
+//!
+//! # Lock-Mint Flow
+//!
+//! 1. User locks ETH/ERC-20 in vault contract on Ethereum
+//! 2. Relayer detects lock event and submits proof to Synor
+//! 3. Synor verifies proof and mints wrapped tokens
+//!
+//! # Burn-Unlock Flow
+//!
+//! 1. User burns wrapped tokens on Synor
+//! 2. Relayer detects burn event and submits proof to Ethereum
+//! 3. Vault contract verifies proof and unlocks original tokens
+
+use crate::{
+    AssetId, Bridge, BridgeAddress, BridgeError, BridgeResult, BridgeTransfer, ChainType,
+    TransferDirection, TransferId, TransferManager, TransferStatus, VaultManager,
+    ETH_MIN_CONFIRMATIONS,
+};
+use alloy_primitives::{Address, B256, U256};
+use alloy_sol_types::sol;
+use async_trait::async_trait;
+use borsh::{BorshDeserialize, BorshSerialize};
+use parking_lot::RwLock;
+use serde::{Deserialize, Serialize};
+use sha3::{Digest, Keccak256};
+use std::collections::HashMap;
+use std::sync::Arc;
+
+// Solidity event signatures
+sol! {
+    event TokenLocked(
+        address indexed token,
+        address indexed sender,
+        bytes32 recipient,
+        uint256 amount,
+        uint256 nonce
+    );
+
+    event TokenUnlocked(
+        address indexed token,
+        address indexed recipient,
+        uint256 amount,
+        bytes32 transferId
+    );
+}
+
+/// Ethereum bridge configuration
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct EthereumBridgeConfig {
+    /// Ethereum chain ID
+    pub chain_id: u64,
+    /// Vault contract address
+    pub vault_address: Address,
+    /// Required confirmations
+    pub required_confirmations: u64,
+    /// Supported tokens (address → AssetId)
+    pub supported_tokens: HashMap<Address, AssetId>,
+    /// Relayer addresses (for multi-sig)
+    pub relayers: Vec<Address>,
+    /// Required relayer signatures
+    pub required_signatures: usize,
+    /// Whether bridge is paused
+    pub paused: bool,
+    /// Daily limit per token (address → limit)
+    pub daily_limits: HashMap<Address, U256>,
+}
+
+impl Default for EthereumBridgeConfig {
+    fn default() -> Self {
+        let mut supported_tokens = HashMap::new();
+        supported_tokens.insert(Address::ZERO, AssetId::eth()); // Native ETH
+
+        Self {
+            chain_id: 1, // Mainnet
+            vault_address: Address::ZERO,
+            required_confirmations: ETH_MIN_CONFIRMATIONS,
+            supported_tokens,
+            relayers: Vec::new(),
+            required_signatures: 1,
+            paused: false,
+            daily_limits: HashMap::new(),
+        }
+    }
+}
+
+impl EthereumBridgeConfig {
+    /// Create testnet config
+    pub fn sepolia() -> Self {
+        Self {
+            chain_id: 11155111,
+            required_confirmations: 3, // Lower for testnet
+            ..Default::default()
+        }
+    }
+
+    /// Add supported token
+    pub fn add_token(&mut self, address: Address, asset: AssetId) {
+        self.supported_tokens.insert(address, asset);
+    }
+
+    /// Add relayer
+    pub fn add_relayer(&mut self, address: Address) {
+        if !self.relayers.contains(&address) {
+            self.relayers.push(address);
+        }
+    }
+}
+
+/// Ethereum event types
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub enum EthereumEventType {
+    /// Token locked for bridging to Synor
+    TokenLocked,
+    /// Token unlocked after bridging from Synor
+    TokenUnlocked,
+}
+
+/// Ethereum event
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct EthereumEvent {
+    /// Event type
+    pub event_type: EthereumEventType,
+    /// Transaction hash
+    pub tx_hash: B256,
+    /// Block number
+    pub block_number: u64,
+    /// Log index
+    pub log_index: u64,
+    /// Token address (zero for native ETH)
+    pub token: Address,
+    /// Sender address
+    pub sender: Address,
+    /// Amount
+    pub amount: U256,
+    /// Recipient (Synor address for lock, Ethereum address for unlock)
+    pub recipient: Vec<u8>,
+    /// Nonce
+    pub nonce: u64,
+}
+
+impl EthereumEvent {
+    /// Compute event hash for verification
+    pub fn hash(&self) -> B256 {
+        let mut hasher = Keccak256::new();
+        hasher.update(self.tx_hash.as_slice());
+        hasher.update(&self.block_number.to_le_bytes());
+        hasher.update(&self.log_index.to_le_bytes());
+        hasher.update(self.token.as_slice());
+        hasher.update(self.sender.as_slice());
+        hasher.update(&self.amount.to_le_bytes::<32>());
+        hasher.update(&self.recipient);
+        hasher.update(&self.nonce.to_le_bytes());
+
+        let result = hasher.finalize();
+        B256::from_slice(&result)
+    }
+}
+
+/// Wrapped token on Synor
+#[derive(Debug, Clone, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct WrappedToken {
+    /// Original asset
+    pub original: AssetId,
+    /// Wrapped asset on Synor
+    pub wrapped: AssetId,
+    /// Total supply minted
+    pub total_supply: u128,
+    /// Original token contract on Ethereum
+    pub ethereum_address: Vec<u8>,
+}
+
+impl WrappedToken {
+    /// Create a wrapped token
+    pub fn new(ethereum_address: Address, original: AssetId) -> Self {
+        let wrapped = AssetId::wrapped(&original);
+        Self {
+            original,
+            wrapped,
+            total_supply: 0,
+            ethereum_address: ethereum_address.to_vec(),
+        }
+    }
+
+    /// Mint wrapped tokens
+    pub fn mint(&mut self, amount: u128) {
+        self.total_supply += amount;
+    }
+
+    /// Burn wrapped tokens
+    pub fn burn(&mut self, amount: u128) -> BridgeResult<()> {
+        if amount > self.total_supply {
+            return Err(BridgeError::InsufficientBalance {
+                required: amount,
+                available: self.total_supply,
+            });
+        }
+        self.total_supply -= amount;
+        Ok(())
+    }
+}
+
+/// Ethereum bridge
+pub struct EthereumBridge {
+    /// Configuration
+    config: RwLock<EthereumBridgeConfig>,
+    /// Transfer manager
+    transfers: Arc<RwLock<TransferManager>>,
+    /// Vault manager
+    vaults: Arc<RwLock<VaultManager>>,
+    /// Wrapped tokens by original address
+    wrapped_tokens: RwLock<HashMap<Address, WrappedToken>>,
+    /// Pending events awaiting confirmation
+    pending_events: RwLock<HashMap<B256, EthereumEvent>>,
+    /// Processed event hashes (to prevent replay)
+    processed_events: RwLock<HashMap<B256, bool>>,
+    /// Relayer signatures per event
+    relayer_signatures: RwLock<HashMap<B256, Vec<(Address, Vec<u8>)>>>,
+}
+
+impl EthereumBridge {
+    /// Create a new Ethereum bridge
+    pub fn new(config: EthereumBridgeConfig) -> Self {
+        Self {
+            config: RwLock::new(config),
+            transfers: Arc::new(RwLock::new(TransferManager::new())),
+            vaults: Arc::new(RwLock::new(VaultManager::new())),
+            wrapped_tokens: RwLock::new(HashMap::new()),
+            pending_events: RwLock::new(HashMap::new()),
+            processed_events: RwLock::new(HashMap::new()),
+            relayer_signatures: RwLock::new(HashMap::new()),
+        }
+    }
+
+    /// Create for Sepolia testnet
+    pub fn sepolia() -> Self {
+        Self::new(EthereumBridgeConfig::sepolia())
+    }
+
+    /// Get configuration
+    pub fn config(&self) -> EthereumBridgeConfig {
+        self.config.read().clone()
+    }
+
+    /// Update configuration
+    pub fn update_config<F>(&self, f: F)
+    where
+        F: FnOnce(&mut EthereumBridgeConfig),
+    {
+        f(&mut self.config.write());
+    }
+
+    /// Pause bridge
+    pub fn pause(&self) {
+        self.config.write().paused = true;
+    }
+
+    /// Resume bridge
+    pub fn resume(&self) {
+        self.config.write().paused = false;
+    }
+
+    /// Check if bridge is paused
+    pub fn is_paused(&self) -> bool {
+        self.config.read().paused
+    }
+
+    /// Process a lock event from Ethereum
+    pub fn process_lock_event(
+        &self,
+        event: EthereumEvent,
+        current_time: u64,
+    ) -> BridgeResult<TransferId> {
+        if self.is_paused() {
+            return Err(BridgeError::BridgePaused);
+        }
+
+        // Check for replay
+        let event_hash = event.hash();
+        if self.processed_events.read().contains_key(&event_hash) {
+            return Err(BridgeError::TransferAlreadyExists(
+                hex::encode(event_hash.as_slice()),
+            ));
+        }
+
+        // Verify token is supported
+        let config = self.config.read();
+        let asset = config
+            .supported_tokens
+            .get(&event.token)
+            .cloned()
+            .ok_or_else(|| BridgeError::AssetNotSupported(format!("{:?}", event.token)))?;
+
+        // Create bridge address from recipient bytes
+        let recipient = if event.recipient.len() == 32 {
+            let mut arr = [0u8; 32];
+            arr.copy_from_slice(&event.recipient);
+            BridgeAddress::from_synor(arr)
+        } else {
+            return Err(BridgeError::InvalidAddress("invalid recipient".to_string()));
+        };
+
+        let sender = BridgeAddress::from_eth(event.sender.into());
+        let amount = event.amount.to::<u128>();
+
+        // Create transfer
+        let transfer_id = self.transfers.write().create_inbound(
+            ChainType::Ethereum,
+            asset,
+            amount,
+            sender,
+            recipient,
+            config.required_confirmations,
+            current_time,
+        )?;
+
+        // Store pending event
+        self.pending_events.write().insert(event_hash, event);
+
+        // Record lock in transfer
+        self.transfers.write().confirm_lock(
+            &transfer_id,
+            event_hash.to_vec(),
+            0, // Will be updated with actual block number
+            current_time,
+        )?;
+
+        Ok(transfer_id)
+    }
+
+    /// Submit relayer signature for an event
+    pub fn submit_relayer_signature(
+        &self,
+        event_hash: B256,
+        relayer: Address,
+        signature: Vec<u8>,
+    ) -> BridgeResult<bool> {
+        let config = self.config.read();
+
+        // Verify relayer is authorized
+        if !config.relayers.contains(&relayer) {
+            return Err(BridgeError::SignatureVerificationFailed(
+                "unauthorized relayer".to_string(),
+            ));
+        }
+
+        // Add signature
+        let mut signatures = self.relayer_signatures.write();
+        let sigs = signatures.entry(event_hash).or_default();
+
+        // Check for duplicate
+        if sigs.iter().any(|(r, _)| r == &relayer) {
+            return Ok(false);
+        }
+
+        sigs.push((relayer, signature));
+
+        // Check if we have enough signatures
+        Ok(sigs.len() >= config.required_signatures)
+    }
+
+    /// Update confirmations for pending events
+    pub fn update_confirmations(
+        &self,
+        current_block: u64,
+        current_time: u64,
+    ) -> BridgeResult<Vec<TransferId>> {
+        let config = self.config.read();
+        let required_confirmations = config.required_confirmations;
+        drop(config);
+
+        let mut confirmed = Vec::new();
+
+        // Collect pending events and their confirmations
+        let pending = self.pending_events.read();
+        let events_to_process: Vec<_> = pending
+            .iter()
+            .map(|(hash, event)| {
+                let confirmations = current_block.saturating_sub(event.block_number);
+                (*hash, confirmations)
+            })
+            .collect();
+        drop(pending);
+
+        // Find and update matching transfers
+        for (event_hash, confirmations) in events_to_process {
+            // Collect matching transfer IDs first
+            let matching_transfer_id = {
+                let transfers = self.transfers.read();
+                transfers
+                    .pending_transfers()
+                    .iter()
+                    .find_map(|transfer| {
+                        transfer.source_tx_hash.as_ref().and_then(|tx_hash| {
+                            if tx_hash.as_slice() == event_hash.as_slice() {
+                                Some(transfer.id.clone())
+                            } else {
+                                None
+                            }
+                        })
+                    })
+            };
+
+            // Now update the transfer if found
+            if let Some(transfer_id) = matching_transfer_id {
+                self.transfers.write().update_confirmations(
+                    &transfer_id,
+                    confirmations,
+                    current_time,
+                )?;
+
+                if confirmations >= required_confirmations {
+                    confirmed.push(transfer_id);
+                }
+            }
+        }
+
+        Ok(confirmed)
+    }
+
+    /// Mint wrapped tokens after confirmation
+    pub fn mint_wrapped_tokens(
+        &self,
+        transfer_id: &TransferId,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let mut transfers = self.transfers.write();
+        let transfer = transfers
+            .get(transfer_id)
+            .ok_or_else(|| BridgeError::TransferNotFound(transfer_id.to_string()))?;
+
+        // Verify transfer is confirmed
+        if transfer.status != TransferStatus::Confirmed {
+            return Err(BridgeError::InvalidProof(format!(
+                "transfer not confirmed: {}",
+                transfer.status
+            )));
+        }
+
+        // Get original token address
+        let token_address = if transfer.asset.identifier == "native" {
+            Address::ZERO
+        } else {
+            let bytes = hex::decode(
+                transfer
+                    .asset
+                    .identifier
+                    .strip_prefix("0x")
+                    .unwrap_or(&transfer.asset.identifier),
+            )
+            .map_err(|e| BridgeError::InvalidAddress(e.to_string()))?;
+
+            if bytes.len() != 20 {
+                return Err(BridgeError::InvalidAddress("invalid address length".to_string()));
+            }
+            Address::from_slice(&bytes)
+        };
+
+        // Get or create wrapped token
+        let mut wrapped_tokens = self.wrapped_tokens.write();
+        let wrapped = wrapped_tokens
+            .entry(token_address)
+            .or_insert_with(|| WrappedToken::new(token_address, transfer.asset.clone()));
+
+        // Mint tokens
+        wrapped.mint(transfer.amount);
+
+        // Mark transfer as completed
+        drop(wrapped_tokens);
+        transfers.confirm_mint(transfer_id, vec![], current_time)?;
+
+        Ok(())
+    }
+
+    /// Initiate burn for outbound transfer
+    pub fn initiate_burn(
+        &self,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        current_time: u64,
+    ) -> BridgeResult<TransferId> {
+        if self.is_paused() {
+            return Err(BridgeError::BridgePaused);
+        }
+
+        // Find wrapped token
+        let token_address = if let Some(id) = asset.unwrap_identifier() {
+            if id == "native" {
+                Address::ZERO
+            } else {
+                let bytes = hex::decode(id.strip_prefix("0x").unwrap_or(id))
+                    .map_err(|e| BridgeError::InvalidAddress(e.to_string()))?;
+                Address::from_slice(&bytes)
+            }
+        } else {
+            return Err(BridgeError::AssetNotSupported(asset.to_string()));
+        };
+
+        // Verify we have enough supply
+        let mut wrapped_tokens = self.wrapped_tokens.write();
+        let wrapped = wrapped_tokens
+            .get_mut(&token_address)
+            .ok_or_else(|| BridgeError::AssetNotSupported(format!("{:?}", token_address)))?;
+
+        // Burn tokens
+        wrapped.burn(amount)?;
+
+        // Get original asset
+        let original_asset = wrapped.original.clone();
+
+        // Create outbound transfer
+        let config = self.config.read();
+        let transfer_id = self.transfers.write().create_outbound(
+            ChainType::Ethereum,
+            original_asset,
+            amount,
+            sender,
+            recipient,
+            config.required_confirmations,
+            current_time,
+        )?;
+
+        Ok(transfer_id)
+    }
+
+    /// Get wrapped token info
+    pub fn get_wrapped_token(&self, address: Address) -> Option<WrappedToken> {
+        self.wrapped_tokens.read().get(&address).cloned()
+    }
+
+    /// Get total wrapped supply
+    pub fn total_wrapped_supply(&self) -> u128 {
+        self.wrapped_tokens
+            .read()
+            .values()
+            .map(|t| t.total_supply)
+            .sum()
+    }
+
+    /// Get transfer manager
+    pub fn transfer_manager(&self) -> Arc<RwLock<TransferManager>> {
+        self.transfers.clone()
+    }
+
+    /// Get vault manager
+    pub fn vault_manager(&self) -> Arc<RwLock<VaultManager>> {
+        self.vaults.clone()
+    }
+}
+
+#[async_trait]
+impl Bridge for EthereumBridge {
+    fn source_chain(&self) -> ChainType {
+        ChainType::Ethereum
+    }
+
+    fn destination_chain(&self) -> ChainType {
+        ChainType::Synor
+    }
+
+    fn supports_asset(&self, asset: &AssetId) -> bool {
+        let config = self.config.read();
+        config
+            .supported_tokens
+            .values()
+            .any(|a| a.identifier == asset.identifier)
+    }
+
+    fn min_confirmations(&self) -> u64 {
+        self.config.read().required_confirmations
+    }
+
+    async fn lock(&self, transfer: &BridgeTransfer) -> BridgeResult<TransferId> {
+        // In production, this would interact with Ethereum contract
+        // For now, we simulate the lock
+        Ok(transfer.id.clone())
+    }
+
+    async fn verify_lock(&self, transfer_id: &TransferId) -> BridgeResult<bool> {
+        let transfers = self.transfers.read();
+        let transfer = transfers
+            .get(transfer_id)
+            .ok_or_else(|| BridgeError::TransferNotFound(transfer_id.to_string()))?;
+
+        Ok(transfer.has_sufficient_confirmations())
+    }
+
+    async fn mint(&self, transfer: &BridgeTransfer) -> BridgeResult<()> {
+        let current_time = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_secs();
+
+        self.mint_wrapped_tokens(&transfer.id, current_time)
+    }
+
+    async fn burn(&self, transfer: &BridgeTransfer) -> BridgeResult<TransferId> {
+        let current_time = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_secs();
+
+        self.initiate_burn(
+            transfer.asset.clone(),
+            transfer.amount,
+            transfer.sender.clone(),
+            transfer.recipient.clone(),
+            current_time,
+        )
+    }
+
+    async fn unlock(&self, transfer_id: &TransferId) -> BridgeResult<()> {
+        // In production, this would interact with Ethereum contract
+        let current_time = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap()
+            .as_secs();
+
+        self.transfers
+            .write()
+            .confirm_unlock(transfer_id, vec![], current_time)
+    }
+
+    async fn get_transfer_status(&self, transfer_id: &TransferId) -> BridgeResult<TransferStatus> {
+        let transfers = self.transfers.read();
+        let transfer = transfers
+            .get(transfer_id)
+            .ok_or_else(|| BridgeError::TransferNotFound(transfer_id.to_string()))?;
+
+        Ok(transfer.status)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    fn test_sender() -> BridgeAddress {
+        BridgeAddress::from_eth([0xaa; 20])
+    }
+
+    fn test_recipient() -> BridgeAddress {
+        BridgeAddress::from_synor([0xbb; 32])
+    }
+
+    #[test]
+    fn test_bridge_creation() {
+        let bridge = EthereumBridge::new(EthereumBridgeConfig::default());
+        assert!(!bridge.is_paused());
+        assert!(bridge.supports_asset(&AssetId::eth()));
+    }
+
+    #[test]
+    fn test_lock_event_processing() {
+        let bridge = EthereumBridge::new(EthereumBridgeConfig::default());
+        let current_time = 1700000000;
+
+        let event = EthereumEvent {
+            event_type: EthereumEventType::TokenLocked,
+            tx_hash: B256::from([0x11; 32]),
+            block_number: 100,
+            log_index: 0,
+            token: Address::ZERO, // Native ETH
+            sender: Address::from([0xaa; 20]),
+            amount: U256::from(1000u64),
+            recipient: vec![0xbb; 32],
+            nonce: 0,
+        };
+
+        let transfer_id = bridge.process_lock_event(event.clone(), current_time).unwrap();
+
+        // Verify transfer was created
+        let transfers = bridge.transfers.read();
+        let transfer = transfers.get(&transfer_id).unwrap();
+        assert_eq!(transfer.direction, TransferDirection::Inbound);
+        assert_eq!(transfer.amount, 1000);
+    }
+
+    #[test]
+    fn test_wrapped_token_minting() {
+        let bridge = EthereumBridge::new(EthereumBridgeConfig::default());
+        let current_time = 1700000000;
+
+        // Process lock event
+        let event = EthereumEvent {
+            event_type: EthereumEventType::TokenLocked,
+            tx_hash: B256::from([0x11; 32]),
+            block_number: 100,
+            log_index: 0,
+            token: Address::ZERO,
+            sender: Address::from([0xaa; 20]),
+            amount: U256::from(1000u64),
+            recipient: vec![0xbb; 32],
+            nonce: 0,
+        };
+
+        let transfer_id = bridge.process_lock_event(event, current_time).unwrap();
+
+        // Simulate confirmations
+        bridge
+            .transfers
+            .write()
+            .update_confirmations(&transfer_id, 12, current_time + 100)
+            .unwrap();
+
+        // Mint wrapped tokens
+        bridge.mint_wrapped_tokens(&transfer_id, current_time + 200).unwrap();
+
+        // Verify wrapped tokens were minted
+        let wrapped = bridge.get_wrapped_token(Address::ZERO).unwrap();
+        assert_eq!(wrapped.total_supply, 1000);
+    }
+
+    #[test]
+    fn test_burn_initiation() {
+        let bridge = EthereumBridge::new(EthereumBridgeConfig::default());
+        let current_time = 1700000000;
+
+        // First mint some wrapped tokens
+        let mut wrapped_tokens = bridge.wrapped_tokens.write();
+        let mut wrapped = WrappedToken::new(Address::ZERO, AssetId::eth());
+        wrapped.mint(5000);
+        wrapped_tokens.insert(Address::ZERO, wrapped);
+        drop(wrapped_tokens);
+
+        // Initiate burn
+        let asset = AssetId::wrapped(&AssetId::eth());
+        let transfer_id = bridge
+            .initiate_burn(
+                asset,
+                1000,
+                test_recipient(),
+                test_sender(),
+                current_time,
+            )
+            .unwrap();
+
+        // Verify transfer was created
+        let transfers = bridge.transfers.read();
+        let transfer = transfers.get(&transfer_id).unwrap();
+        assert_eq!(transfer.direction, TransferDirection::Outbound);
+        assert_eq!(transfer.amount, 1000);
+
+        // Verify wrapped supply decreased
+        drop(transfers);
+        let wrapped = bridge.get_wrapped_token(Address::ZERO).unwrap();
+        assert_eq!(wrapped.total_supply, 4000);
+    }
+
+    #[test]
+    fn test_bridge_pause() {
+        let bridge = EthereumBridge::new(EthereumBridgeConfig::default());
+
+        bridge.pause();
+        assert!(bridge.is_paused());
+
+        let event = EthereumEvent {
+            event_type: EthereumEventType::TokenLocked,
+            tx_hash: B256::from([0x11; 32]),
+            block_number: 100,
+            log_index: 0,
+            token: Address::ZERO,
+            sender: Address::from([0xaa; 20]),
+            amount: U256::from(1000u64),
+            recipient: vec![0xbb; 32],
+            nonce: 0,
+        };
+
+        let result = bridge.process_lock_event(event, 0);
+        assert!(matches!(result, Err(BridgeError::BridgePaused)));
+
+        bridge.resume();
+        assert!(!bridge.is_paused());
+    }
+
+    #[test]
+    fn test_event_hash() {
+        let event1 = EthereumEvent {
+            event_type: EthereumEventType::TokenLocked,
+            tx_hash: B256::from([0x11; 32]),
+            block_number: 100,
+            log_index: 0,
+            token: Address::ZERO,
+            sender: Address::from([0xaa; 20]),
+            amount: U256::from(1000u64),
+            recipient: vec![0xbb; 32],
+            nonce: 0,
+        };
+
+        let event2 = EthereumEvent {
+            nonce: 1,
+            ..event1.clone()
+        };
+
+        // Different nonce should produce different hash
+        assert_ne!(event1.hash(), event2.hash());
+
+        // Same event should produce same hash
+        let event3 = event1.clone();
+        assert_eq!(event1.hash(), event3.hash());
+    }
+}

crates/synor-bridge/src/lib.rs

@@ -0,0 +1,436 @@
+//! Cross-Chain Bridge Infrastructure for Synor
+//!
+//! This crate provides bridge infrastructure for cross-chain asset transfers,
+//! enabling Synor to interoperate with external blockchains like Ethereum.
+//!
+//! # Architecture
+//!
+//! ```text
+//! ┌────────────────────────────────────────────────────────────────────┐
+//! │                    Synor Bridge Architecture                        │
+//! ├────────────────────────────────────────────────────────────────────┤
+//! │                                                                    │
+//! │  ┌──────────────┐    Lock-Mint    ┌──────────────────────────┐   │
+//! │  │   External   │ ──────────────► │     Synor Chain          │   │
+//! │  │   Chain      │                 │                          │   │
+//! │  │  (Ethereum)  │ ◄────────────── │   Wrapped Tokens (sETH)  │   │
+//! │  │              │    Burn-Unlock  │                          │   │
+//! │  └──────────────┘                 └──────────────────────────┘   │
+//! │                                                                    │
+//! │  ┌─────────────────────────────────────────────────────────────┐  │
+//! │  │                    Bridge Components                         │  │
+//! │  │  ┌───────────┐  ┌───────────┐  ┌───────────┐  ┌──────────┐ │  │
+//! │  │  │   Vault   │  │  Relayer  │  │ Validator │  │  Oracle  │ │  │
+//! │  │  │  (Locks)  │  │ (Events)  │  │ (Proofs)  │  │ (Price)  │ │  │
+//! │  │  └───────────┘  └───────────┘  └───────────┘  └──────────┘ │  │
+//! │  └─────────────────────────────────────────────────────────────┘  │
+//! │                                                                    │
+//! └────────────────────────────────────────────────────────────────────┘
+//! ```
+//!
+//! # Bridge Flow (Lock-Mint)
+//!
+//! ```text
+//! User                  Ethereum              Relayer              Synor
+//!  │                       │                    │                    │
+//!  ├── Lock ETH ─────────►│                    │                    │
+//!  │                       ├── LockEvent ─────►│                    │
+//!  │                       │                    ├── SubmitProof ───►│
+//!  │                       │                    │                    ├─ Verify
+//!  │                       │                    │                    ├─ Mint sETH
+//!  │◄─────────────────────────────────────────────────── sETH ──────┤
+//! ```
+//!
+//! # Supported Bridges
+//!
+//! - **Ethereum**: Lock-Mint bridge for ETH and ERC-20 tokens
+//! - **Bitcoin**: HTLC-based atomic swaps (via synor-ibc)
+//! - **IBC Chains**: Native IBC transfers (via synor-ibc)
+
+#![allow(dead_code)]
+
+pub mod ethereum;
+pub mod transfer;
+pub mod vault;
+
+pub use ethereum::{
+    EthereumBridge, EthereumBridgeConfig, EthereumEvent, EthereumEventType, WrappedToken,
+};
+pub use transfer::{
+    BridgeTransfer, TransferDirection, TransferId, TransferManager, TransferStatus,
+};
+pub use vault::{LockedAsset, Vault, VaultId, VaultManager};
+
+use borsh::{BorshDeserialize, BorshSerialize};
+use serde::{Deserialize, Serialize};
+use std::fmt;
+use thiserror::Error;
+
+/// Bridge protocol version
+pub const BRIDGE_VERSION: &str = "1.0.0";
+
+/// Maximum transfer amount for safety (in smallest units)
+pub const MAX_TRANSFER_AMOUNT: u128 = 1_000_000_000_000_000_000_000_000; // 1M tokens
+
+/// Minimum confirmations for Ethereum deposits
+pub const ETH_MIN_CONFIRMATIONS: u64 = 12;
+
+/// Minimum confirmations for Bitcoin deposits
+pub const BTC_MIN_CONFIRMATIONS: u64 = 6;
+
+/// Bridge chain identifier
+#[derive(Debug, Clone, PartialEq, Eq, Hash, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub enum ChainType {
+    /// Synor native chain
+    Synor,
+    /// Ethereum mainnet
+    Ethereum,
+    /// Ethereum Sepolia testnet
+    EthereumSepolia,
+    /// Bitcoin mainnet
+    Bitcoin,
+    /// Bitcoin testnet
+    BitcoinTestnet,
+    /// Cosmos SDK chain (IBC)
+    Cosmos(String),
+    /// Custom chain
+    Custom(String),
+}
+
+impl ChainType {
+    /// Get chain ID for Ethereum networks
+    pub fn eth_chain_id(&self) -> Option<u64> {
+        match self {
+            ChainType::Ethereum => Some(1),
+            ChainType::EthereumSepolia => Some(11155111),
+            _ => None,
+        }
+    }
+
+    /// Check if this is an EVM-compatible chain
+    pub fn is_evm(&self) -> bool {
+        matches!(self, ChainType::Ethereum | ChainType::EthereumSepolia)
+    }
+}
+
+impl fmt::Display for ChainType {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        match self {
+            ChainType::Synor => write!(f, "synor"),
+            ChainType::Ethereum => write!(f, "ethereum"),
+            ChainType::EthereumSepolia => write!(f, "ethereum-sepolia"),
+            ChainType::Bitcoin => write!(f, "bitcoin"),
+            ChainType::BitcoinTestnet => write!(f, "bitcoin-testnet"),
+            ChainType::Cosmos(id) => write!(f, "cosmos:{}", id),
+            ChainType::Custom(id) => write!(f, "custom:{}", id),
+        }
+    }
+}
+
+/// Asset identifier across chains
+#[derive(Debug, Clone, PartialEq, Eq, Hash, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct AssetId {
+    /// Chain where the asset originates
+    pub chain: ChainType,
+    /// Asset identifier (contract address for ERC-20, "native" for ETH)
+    pub identifier: String,
+    /// Asset symbol
+    pub symbol: String,
+    /// Decimal places
+    pub decimals: u8,
+}
+
+impl AssetId {
+    /// Create native Ethereum asset
+    pub fn eth() -> Self {
+        Self {
+            chain: ChainType::Ethereum,
+            identifier: "native".to_string(),
+            symbol: "ETH".to_string(),
+            decimals: 18,
+        }
+    }
+
+    /// Create ERC-20 asset
+    pub fn erc20(address: impl Into<String>, symbol: impl Into<String>, decimals: u8) -> Self {
+        Self {
+            chain: ChainType::Ethereum,
+            identifier: address.into(),
+            symbol: symbol.into(),
+            decimals,
+        }
+    }
+
+    /// Create Synor native asset
+    pub fn synor() -> Self {
+        Self {
+            chain: ChainType::Synor,
+            identifier: "native".to_string(),
+            symbol: "SYNOR".to_string(),
+            decimals: 18,
+        }
+    }
+
+    /// Create wrapped asset on Synor
+    pub fn wrapped(original: &AssetId) -> Self {
+        Self {
+            chain: ChainType::Synor,
+            identifier: format!("wrapped:{}", original.identifier),
+            symbol: format!("s{}", original.symbol),
+            decimals: original.decimals,
+        }
+    }
+
+    /// Check if this is a wrapped asset
+    pub fn is_wrapped(&self) -> bool {
+        self.identifier.starts_with("wrapped:")
+    }
+
+    /// Get the original asset if this is wrapped
+    pub fn unwrap_identifier(&self) -> Option<&str> {
+        self.identifier.strip_prefix("wrapped:")
+    }
+}
+
+impl fmt::Display for AssetId {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        write!(f, "{}:{}", self.chain, self.symbol)
+    }
+}
+
+/// Bridge address (unified format for cross-chain addresses)
+#[derive(Debug, Clone, PartialEq, Eq, Hash, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct BridgeAddress {
+    /// Chain type
+    pub chain: ChainType,
+    /// Address bytes
+    pub address: Vec<u8>,
+}
+
+impl BridgeAddress {
+    /// Create from Ethereum address (20 bytes)
+    pub fn from_eth(address: [u8; 20]) -> Self {
+        Self {
+            chain: ChainType::Ethereum,
+            address: address.to_vec(),
+        }
+    }
+
+    /// Create from Synor address (32 bytes)
+    pub fn from_synor(address: [u8; 32]) -> Self {
+        Self {
+            chain: ChainType::Synor,
+            address: address.to_vec(),
+        }
+    }
+
+    /// Create from hex string
+    pub fn from_hex(chain: ChainType, hex: &str) -> Result<Self, BridgeError> {
+        let hex = hex.strip_prefix("0x").unwrap_or(hex);
+        let address = hex::decode(hex)
+            .map_err(|e| BridgeError::InvalidAddress(format!("invalid hex: {}", e)))?;
+        Ok(Self { chain, address })
+    }
+
+    /// Get as Ethereum address
+    pub fn as_eth(&self) -> Option<[u8; 20]> {
+        if self.address.len() == 20 {
+            let mut arr = [0u8; 20];
+            arr.copy_from_slice(&self.address);
+            Some(arr)
+        } else {
+            None
+        }
+    }
+
+    /// Get as Synor address
+    pub fn as_synor(&self) -> Option<[u8; 32]> {
+        if self.address.len() == 32 {
+            let mut arr = [0u8; 32];
+            arr.copy_from_slice(&self.address);
+            Some(arr)
+        } else {
+            None
+        }
+    }
+
+    /// Get as hex string
+    pub fn to_hex(&self) -> String {
+        format!("0x{}", hex::encode(&self.address))
+    }
+}
+
+impl fmt::Display for BridgeAddress {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        write!(f, "{}:{}", self.chain, self.to_hex())
+    }
+}
+
+/// Bridge error types
+#[derive(Debug, Error)]
+pub enum BridgeError {
+    #[error("Invalid address: {0}")]
+    InvalidAddress(String),
+
+    #[error("Invalid amount: {0}")]
+    InvalidAmount(String),
+
+    #[error("Transfer not found: {0}")]
+    TransferNotFound(String),
+
+    #[error("Vault not found: {0}")]
+    VaultNotFound(String),
+
+    #[error("Insufficient balance: need {required}, have {available}")]
+    InsufficientBalance { required: u128, available: u128 },
+
+    #[error("Asset not supported: {0}")]
+    AssetNotSupported(String),
+
+    #[error("Chain not supported: {0}")]
+    ChainNotSupported(String),
+
+    #[error("Transfer already exists: {0}")]
+    TransferAlreadyExists(String),
+
+    #[error("Transfer already completed: {0}")]
+    TransferAlreadyCompleted(String),
+
+    #[error("Invalid proof: {0}")]
+    InvalidProof(String),
+
+    #[error("Insufficient confirmations: need {required}, have {actual}")]
+    InsufficientConfirmations { required: u64, actual: u64 },
+
+    #[error("Bridge paused")]
+    BridgePaused,
+
+    #[error("Rate limit exceeded")]
+    RateLimitExceeded,
+
+    #[error("Signature verification failed: {0}")]
+    SignatureVerificationFailed(String),
+
+    #[error("Oracle error: {0}")]
+    OracleError(String),
+
+    #[error("Relayer error: {0}")]
+    RelayerError(String),
+
+    #[error("Internal error: {0}")]
+    Internal(String),
+}
+
+/// Result type for bridge operations
+pub type BridgeResult<T> = std::result::Result<T, BridgeError>;
+
+/// Bridge trait for implementing cross-chain bridges
+#[async_trait::async_trait]
+pub trait Bridge: Send + Sync {
+    /// Get the source chain type
+    fn source_chain(&self) -> ChainType;
+
+    /// Get the destination chain type
+    fn destination_chain(&self) -> ChainType;
+
+    /// Check if an asset is supported
+    fn supports_asset(&self, asset: &AssetId) -> bool;
+
+    /// Get minimum confirmations required
+    fn min_confirmations(&self) -> u64;
+
+    /// Lock assets on the source chain
+    async fn lock(&self, transfer: &BridgeTransfer) -> BridgeResult<TransferId>;
+
+    /// Verify a lock proof
+    async fn verify_lock(&self, transfer_id: &TransferId) -> BridgeResult<bool>;
+
+    /// Mint wrapped tokens on the destination chain
+    async fn mint(&self, transfer: &BridgeTransfer) -> BridgeResult<()>;
+
+    /// Burn wrapped tokens (for redemption)
+    async fn burn(&self, transfer: &BridgeTransfer) -> BridgeResult<TransferId>;
+
+    /// Unlock original tokens
+    async fn unlock(&self, transfer_id: &TransferId) -> BridgeResult<()>;
+
+    /// Get transfer status
+    async fn get_transfer_status(&self, transfer_id: &TransferId) -> BridgeResult<TransferStatus>;
+}
+
+/// Bridge event for tracking cross-chain activity
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub enum BridgeEvent {
+    /// Asset locked on source chain
+    AssetLocked {
+        transfer_id: TransferId,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+    },
+    /// Lock verified
+    LockVerified {
+        transfer_id: TransferId,
+        confirmations: u64,
+    },
+    /// Wrapped token minted
+    TokenMinted {
+        transfer_id: TransferId,
+        asset: AssetId,
+        amount: u128,
+        recipient: BridgeAddress,
+    },
+    /// Token burned for redemption
+    TokenBurned {
+        transfer_id: TransferId,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+    },
+    /// Original asset unlocked
+    AssetUnlocked {
+        transfer_id: TransferId,
+        recipient: BridgeAddress,
+    },
+    /// Transfer completed
+    TransferCompleted { transfer_id: TransferId },
+    /// Transfer failed
+    TransferFailed {
+        transfer_id: TransferId,
+        reason: String,
+    },
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_chain_type() {
+        assert!(ChainType::Ethereum.is_evm());
+        assert!(!ChainType::Bitcoin.is_evm());
+        assert_eq!(ChainType::Ethereum.eth_chain_id(), Some(1));
+    }
+
+    #[test]
+    fn test_asset_id() {
+        let eth = AssetId::eth();
+        assert_eq!(eth.symbol, "ETH");
+        assert_eq!(eth.decimals, 18);
+
+        let wrapped = AssetId::wrapped(&eth);
+        assert!(wrapped.is_wrapped());
+        assert_eq!(wrapped.symbol, "sETH");
+    }
+
+    #[test]
+    fn test_bridge_address() {
+        let eth_addr = BridgeAddress::from_eth([0xde; 20]);
+        assert_eq!(eth_addr.address.len(), 20);
+        assert!(eth_addr.as_eth().is_some());
+
+        let hex_addr = BridgeAddress::from_hex(ChainType::Ethereum, "0xdeadbeef").unwrap();
+        assert_eq!(hex_addr.address, vec![0xde, 0xad, 0xbe, 0xef]);
+    }
+}

crates/synor-bridge/src/transfer.rs

@@ -0,0 +1,830 @@
+//! Bridge Transfer Management
+//!
+//! Manages cross-chain transfer lifecycle including:
+//! - Transfer initiation
+//! - Proof verification
+//! - Status tracking
+//! - Completion and failure handling
+
+use crate::{AssetId, BridgeAddress, BridgeError, BridgeResult, ChainType};
+use borsh::{BorshDeserialize, BorshSerialize};
+use serde::{Deserialize, Serialize};
+use sha2::{Digest, Sha256};
+use std::collections::HashMap;
+use std::fmt;
+
+/// Unique transfer identifier
+#[derive(Debug, Clone, PartialEq, Eq, Hash, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct TransferId(pub String);
+
+impl TransferId {
+    /// Create a new transfer ID
+    pub fn new(id: impl Into<String>) -> Self {
+        Self(id.into())
+    }
+
+    /// Generate transfer ID from parameters
+    pub fn generate(
+        sender: &BridgeAddress,
+        recipient: &BridgeAddress,
+        asset: &AssetId,
+        amount: u128,
+        nonce: u64,
+    ) -> Self {
+        let mut hasher = Sha256::new();
+        hasher.update(&sender.address);
+        hasher.update(&recipient.address);
+        hasher.update(asset.identifier.as_bytes());
+        hasher.update(&amount.to_le_bytes());
+        hasher.update(&nonce.to_le_bytes());
+        Self(hex::encode(&hasher.finalize()[..16]))
+    }
+}
+
+impl fmt::Display for TransferId {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        write!(f, "{}", self.0)
+    }
+}
+
+/// Transfer direction
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub enum TransferDirection {
+    /// From external chain to Synor (Lock → Mint)
+    Inbound,
+    /// From Synor to external chain (Burn → Unlock)
+    Outbound,
+}
+
+impl fmt::Display for TransferDirection {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        match self {
+            TransferDirection::Inbound => write!(f, "inbound"),
+            TransferDirection::Outbound => write!(f, "outbound"),
+        }
+    }
+}
+
+/// Transfer status
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub enum TransferStatus {
+    /// Transfer initiated, awaiting lock confirmation
+    Pending,
+    /// Lock confirmed, awaiting sufficient confirmations
+    Locked,
+    /// Sufficient confirmations, ready for minting/unlocking
+    Confirmed,
+    /// Tokens minted on destination (inbound) or burned (outbound)
+    Minted,
+    /// Original tokens unlocked (outbound only)
+    Unlocked,
+    /// Transfer completed successfully
+    Completed,
+    /// Transfer failed
+    Failed,
+    /// Transfer expired
+    Expired,
+    /// Transfer refunded
+    Refunded,
+}
+
+impl TransferStatus {
+    /// Check if transfer is finalized
+    pub fn is_finalized(&self) -> bool {
+        matches!(
+            self,
+            TransferStatus::Completed
+                | TransferStatus::Failed
+                | TransferStatus::Expired
+                | TransferStatus::Refunded
+        )
+    }
+
+    /// Check if transfer can be retried
+    pub fn can_retry(&self) -> bool {
+        matches!(
+            self,
+            TransferStatus::Pending | TransferStatus::Failed | TransferStatus::Expired
+        )
+    }
+}
+
+impl fmt::Display for TransferStatus {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        match self {
+            TransferStatus::Pending => write!(f, "pending"),
+            TransferStatus::Locked => write!(f, "locked"),
+            TransferStatus::Confirmed => write!(f, "confirmed"),
+            TransferStatus::Minted => write!(f, "minted"),
+            TransferStatus::Unlocked => write!(f, "unlocked"),
+            TransferStatus::Completed => write!(f, "completed"),
+            TransferStatus::Failed => write!(f, "failed"),
+            TransferStatus::Expired => write!(f, "expired"),
+            TransferStatus::Refunded => write!(f, "refunded"),
+        }
+    }
+}
+
+/// Cross-chain bridge transfer
+#[derive(Debug, Clone, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct BridgeTransfer {
+    /// Unique transfer ID
+    pub id: TransferId,
+    /// Transfer direction
+    pub direction: TransferDirection,
+    /// Source chain
+    pub source_chain: ChainType,
+    /// Destination chain
+    pub destination_chain: ChainType,
+    /// Asset being transferred
+    pub asset: AssetId,
+    /// Amount in smallest unit
+    pub amount: u128,
+    /// Sender address on source chain
+    pub sender: BridgeAddress,
+    /// Recipient address on destination chain
+    pub recipient: BridgeAddress,
+    /// Current status
+    pub status: TransferStatus,
+    /// Source chain transaction hash
+    pub source_tx_hash: Option<Vec<u8>>,
+    /// Destination chain transaction hash
+    pub destination_tx_hash: Option<Vec<u8>>,
+    /// Block number where lock occurred
+    pub lock_block: Option<u64>,
+    /// Current confirmations
+    pub confirmations: u64,
+    /// Required confirmations
+    pub required_confirmations: u64,
+    /// Transfer initiation timestamp
+    pub created_at: u64,
+    /// Last update timestamp
+    pub updated_at: u64,
+    /// Expiry timestamp (0 = no expiry)
+    pub expires_at: u64,
+    /// Error message if failed
+    pub error: Option<String>,
+    /// Nonce for uniqueness
+    pub nonce: u64,
+}
+
+impl BridgeTransfer {
+    /// Create a new transfer
+    pub fn new(
+        direction: TransferDirection,
+        source_chain: ChainType,
+        destination_chain: ChainType,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        required_confirmations: u64,
+        nonce: u64,
+        current_time: u64,
+    ) -> Self {
+        let id = TransferId::generate(&sender, &recipient, &asset, amount, nonce);
+
+        Self {
+            id,
+            direction,
+            source_chain,
+            destination_chain,
+            asset,
+            amount,
+            sender,
+            recipient,
+            status: TransferStatus::Pending,
+            source_tx_hash: None,
+            destination_tx_hash: None,
+            lock_block: None,
+            confirmations: 0,
+            required_confirmations,
+            created_at: current_time,
+            updated_at: current_time,
+            expires_at: 0,
+            error: None,
+            nonce,
+        }
+    }
+
+    /// Create inbound transfer (external → Synor)
+    pub fn inbound(
+        source_chain: ChainType,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        required_confirmations: u64,
+        nonce: u64,
+        current_time: u64,
+    ) -> Self {
+        Self::new(
+            TransferDirection::Inbound,
+            source_chain,
+            ChainType::Synor,
+            asset,
+            amount,
+            sender,
+            recipient,
+            required_confirmations,
+            nonce,
+            current_time,
+        )
+    }
+
+    /// Create outbound transfer (Synor → external)
+    pub fn outbound(
+        destination_chain: ChainType,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        required_confirmations: u64,
+        nonce: u64,
+        current_time: u64,
+    ) -> Self {
+        Self::new(
+            TransferDirection::Outbound,
+            ChainType::Synor,
+            destination_chain,
+            asset,
+            amount,
+            sender,
+            recipient,
+            required_confirmations,
+            nonce,
+            current_time,
+        )
+    }
+
+    /// Set expiry
+    pub fn with_expiry(mut self, expires_at: u64) -> Self {
+        self.expires_at = expires_at;
+        self
+    }
+
+    /// Update status
+    pub fn set_status(&mut self, status: TransferStatus, current_time: u64) {
+        self.status = status;
+        self.updated_at = current_time;
+    }
+
+    /// Set lock confirmed
+    pub fn confirm_lock(&mut self, tx_hash: Vec<u8>, block_number: u64, current_time: u64) {
+        self.source_tx_hash = Some(tx_hash);
+        self.lock_block = Some(block_number);
+        self.status = TransferStatus::Locked;
+        self.updated_at = current_time;
+    }
+
+    /// Update confirmations
+    pub fn update_confirmations(&mut self, confirmations: u64, current_time: u64) {
+        self.confirmations = confirmations;
+        self.updated_at = current_time;
+
+        if confirmations >= self.required_confirmations && self.status == TransferStatus::Locked {
+            self.status = TransferStatus::Confirmed;
+        }
+    }
+
+    /// Mark as minted
+    pub fn confirm_mint(&mut self, tx_hash: Vec<u8>, current_time: u64) {
+        self.destination_tx_hash = Some(tx_hash);
+        self.status = TransferStatus::Minted;
+        self.updated_at = current_time;
+
+        // For inbound, minting is the final step
+        if self.direction == TransferDirection::Inbound {
+            self.status = TransferStatus::Completed;
+        }
+    }
+
+    /// Mark as unlocked
+    pub fn confirm_unlock(&mut self, tx_hash: Vec<u8>, current_time: u64) {
+        self.destination_tx_hash = Some(tx_hash);
+        self.status = TransferStatus::Unlocked;
+        self.updated_at = current_time;
+
+        // For outbound, unlocking is the final step
+        if self.direction == TransferDirection::Outbound {
+            self.status = TransferStatus::Completed;
+        }
+    }
+
+    /// Mark as failed
+    pub fn fail(&mut self, error: impl Into<String>, current_time: u64) {
+        self.error = Some(error.into());
+        self.status = TransferStatus::Failed;
+        self.updated_at = current_time;
+    }
+
+    /// Check if expired
+    pub fn is_expired(&self, current_time: u64) -> bool {
+        self.expires_at > 0 && current_time >= self.expires_at
+    }
+
+    /// Check if transfer has sufficient confirmations
+    pub fn has_sufficient_confirmations(&self) -> bool {
+        self.confirmations >= self.required_confirmations
+    }
+
+    /// Get completion percentage (0-100)
+    pub fn completion_percentage(&self) -> u8 {
+        match self.status {
+            TransferStatus::Pending => 0,
+            TransferStatus::Locked => 25,
+            TransferStatus::Confirmed => 50,
+            TransferStatus::Minted => 75,
+            TransferStatus::Unlocked => 90,
+            TransferStatus::Completed => 100,
+            TransferStatus::Failed | TransferStatus::Expired | TransferStatus::Refunded => 0,
+        }
+    }
+}
+
+/// Transfer manager
+pub struct TransferManager {
+    /// Transfers by ID
+    transfers: HashMap<TransferId, BridgeTransfer>,
+    /// Transfers by sender
+    by_sender: HashMap<BridgeAddress, Vec<TransferId>>,
+    /// Transfers by recipient
+    by_recipient: HashMap<BridgeAddress, Vec<TransferId>>,
+    /// Pending transfers
+    pending: Vec<TransferId>,
+    /// Next nonce
+    next_nonce: u64,
+}
+
+impl TransferManager {
+    /// Create a new transfer manager
+    pub fn new() -> Self {
+        Self {
+            transfers: HashMap::new(),
+            by_sender: HashMap::new(),
+            by_recipient: HashMap::new(),
+            pending: Vec::new(),
+            next_nonce: 0,
+        }
+    }
+
+    /// Get next nonce
+    pub fn next_nonce(&mut self) -> u64 {
+        let nonce = self.next_nonce;
+        self.next_nonce += 1;
+        nonce
+    }
+
+    /// Create a new inbound transfer
+    pub fn create_inbound(
+        &mut self,
+        source_chain: ChainType,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        required_confirmations: u64,
+        current_time: u64,
+    ) -> BridgeResult<TransferId> {
+        let nonce = self.next_nonce();
+        let transfer = BridgeTransfer::inbound(
+            source_chain,
+            asset,
+            amount,
+            sender.clone(),
+            recipient.clone(),
+            required_confirmations,
+            nonce,
+            current_time,
+        );
+
+        self.register_transfer(transfer)
+    }
+
+    /// Create a new outbound transfer
+    pub fn create_outbound(
+        &mut self,
+        destination_chain: ChainType,
+        asset: AssetId,
+        amount: u128,
+        sender: BridgeAddress,
+        recipient: BridgeAddress,
+        required_confirmations: u64,
+        current_time: u64,
+    ) -> BridgeResult<TransferId> {
+        let nonce = self.next_nonce();
+        let transfer = BridgeTransfer::outbound(
+            destination_chain,
+            asset,
+            amount,
+            sender.clone(),
+            recipient.clone(),
+            required_confirmations,
+            nonce,
+            current_time,
+        );
+
+        self.register_transfer(transfer)
+    }
+
+    /// Register a transfer
+    fn register_transfer(&mut self, transfer: BridgeTransfer) -> BridgeResult<TransferId> {
+        let id = transfer.id.clone();
+
+        if self.transfers.contains_key(&id) {
+            return Err(BridgeError::TransferAlreadyExists(id.to_string()));
+        }
+
+        self.by_sender
+            .entry(transfer.sender.clone())
+            .or_default()
+            .push(id.clone());
+
+        self.by_recipient
+            .entry(transfer.recipient.clone())
+            .or_default()
+            .push(id.clone());
+
+        self.pending.push(id.clone());
+        self.transfers.insert(id.clone(), transfer);
+
+        Ok(id)
+    }
+
+    /// Get transfer by ID
+    pub fn get(&self, id: &TransferId) -> Option<&BridgeTransfer> {
+        self.transfers.get(id)
+    }
+
+    /// Get mutable transfer by ID
+    pub fn get_mut(&mut self, id: &TransferId) -> Option<&mut BridgeTransfer> {
+        self.transfers.get_mut(id)
+    }
+
+    /// Confirm lock
+    pub fn confirm_lock(
+        &mut self,
+        id: &TransferId,
+        tx_hash: Vec<u8>,
+        block_number: u64,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let transfer = self
+            .transfers
+            .get_mut(id)
+            .ok_or_else(|| BridgeError::TransferNotFound(id.to_string()))?;
+
+        transfer.confirm_lock(tx_hash, block_number, current_time);
+        Ok(())
+    }
+
+    /// Update confirmations
+    pub fn update_confirmations(
+        &mut self,
+        id: &TransferId,
+        confirmations: u64,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let transfer = self
+            .transfers
+            .get_mut(id)
+            .ok_or_else(|| BridgeError::TransferNotFound(id.to_string()))?;
+
+        transfer.update_confirmations(confirmations, current_time);
+
+        // Remove from pending if confirmed
+        if transfer.status == TransferStatus::Confirmed {
+            self.pending.retain(|pid| pid != id);
+        }
+
+        Ok(())
+    }
+
+    /// Confirm mint
+    pub fn confirm_mint(
+        &mut self,
+        id: &TransferId,
+        tx_hash: Vec<u8>,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let transfer = self
+            .transfers
+            .get_mut(id)
+            .ok_or_else(|| BridgeError::TransferNotFound(id.to_string()))?;
+
+        transfer.confirm_mint(tx_hash, current_time);
+        Ok(())
+    }
+
+    /// Confirm unlock
+    pub fn confirm_unlock(
+        &mut self,
+        id: &TransferId,
+        tx_hash: Vec<u8>,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let transfer = self
+            .transfers
+            .get_mut(id)
+            .ok_or_else(|| BridgeError::TransferNotFound(id.to_string()))?;
+
+        transfer.confirm_unlock(tx_hash, current_time);
+        Ok(())
+    }
+
+    /// Mark transfer as failed
+    pub fn fail_transfer(
+        &mut self,
+        id: &TransferId,
+        error: impl Into<String>,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        let transfer = self
+            .transfers
+            .get_mut(id)
+            .ok_or_else(|| BridgeError::TransferNotFound(id.to_string()))?;
+
+        transfer.fail(error, current_time);
+        self.pending.retain(|pid| pid != id);
+
+        Ok(())
+    }
+
+    /// Get transfers by sender
+    pub fn by_sender(&self, sender: &BridgeAddress) -> Vec<&BridgeTransfer> {
+        self.by_sender
+            .get(sender)
+            .map(|ids| ids.iter().filter_map(|id| self.transfers.get(id)).collect())
+            .unwrap_or_default()
+    }
+
+    /// Get transfers by recipient
+    pub fn by_recipient(&self, recipient: &BridgeAddress) -> Vec<&BridgeTransfer> {
+        self.by_recipient
+            .get(recipient)
+            .map(|ids| ids.iter().filter_map(|id| self.transfers.get(id)).collect())
+            .unwrap_or_default()
+    }
+
+    /// Get pending transfers
+    pub fn pending_transfers(&self) -> Vec<&BridgeTransfer> {
+        self.pending
+            .iter()
+            .filter_map(|id| self.transfers.get(id))
+            .collect()
+    }
+
+    /// Get transfers ready for confirmation
+    pub fn ready_for_confirmation(&self) -> Vec<&BridgeTransfer> {
+        self.transfers
+            .values()
+            .filter(|t| t.status == TransferStatus::Confirmed)
+            .collect()
+    }
+
+    /// Check and expire old transfers
+    pub fn expire_old_transfers(&mut self, current_time: u64) -> Vec<TransferId> {
+        let expired: Vec<TransferId> = self
+            .transfers
+            .iter()
+            .filter(|(_, t)| !t.status.is_finalized() && t.is_expired(current_time))
+            .map(|(id, _)| id.clone())
+            .collect();
+
+        for id in &expired {
+            if let Some(transfer) = self.transfers.get_mut(id) {
+                transfer.set_status(TransferStatus::Expired, current_time);
+            }
+            self.pending.retain(|pid| pid != id);
+        }
+
+        expired
+    }
+
+    /// Get transfer statistics
+    pub fn stats(&self) -> TransferStats {
+        let mut stats = TransferStats::default();
+
+        for transfer in self.transfers.values() {
+            stats.total_count += 1;
+            stats.total_volume += transfer.amount;
+
+            match transfer.status {
+                TransferStatus::Pending | TransferStatus::Locked => stats.pending_count += 1,
+                TransferStatus::Confirmed | TransferStatus::Minted | TransferStatus::Unlocked => {
+                    stats.in_progress_count += 1
+                }
+                TransferStatus::Completed => {
+                    stats.completed_count += 1;
+                    stats.completed_volume += transfer.amount;
+                }
+                TransferStatus::Failed => stats.failed_count += 1,
+                TransferStatus::Expired | TransferStatus::Refunded => stats.expired_count += 1,
+            }
+
+            match transfer.direction {
+                TransferDirection::Inbound => stats.inbound_count += 1,
+                TransferDirection::Outbound => stats.outbound_count += 1,
+            }
+        }
+
+        stats
+    }
+}
+
+impl Default for TransferManager {
+    fn default() -> Self {
+        Self::new()
+    }
+}
+
+/// Transfer statistics
+#[derive(Debug, Clone, Default)]
+pub struct TransferStats {
+    pub total_count: u64,
+    pub total_volume: u128,
+    pub pending_count: u64,
+    pub in_progress_count: u64,
+    pub completed_count: u64,
+    pub completed_volume: u128,
+    pub failed_count: u64,
+    pub expired_count: u64,
+    pub inbound_count: u64,
+    pub outbound_count: u64,
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    fn test_sender() -> BridgeAddress {
+        BridgeAddress::from_eth([0xaa; 20])
+    }
+
+    fn test_recipient() -> BridgeAddress {
+        BridgeAddress::from_synor([0xbb; 32])
+    }
+
+    #[test]
+    fn test_transfer_id() {
+        let sender = test_sender();
+        let recipient = test_recipient();
+        let asset = AssetId::eth();
+
+        let id1 = TransferId::generate(&sender, &recipient, &asset, 1000, 0);
+        let id2 = TransferId::generate(&sender, &recipient, &asset, 1000, 0);
+        let id3 = TransferId::generate(&sender, &recipient, &asset, 1000, 1);
+
+        assert_eq!(id1, id2);
+        assert_ne!(id1, id3);
+    }
+
+    #[test]
+    fn test_transfer_lifecycle() {
+        let current_time = 1700000000;
+        let mut transfer = BridgeTransfer::inbound(
+            ChainType::Ethereum,
+            AssetId::eth(),
+            1000,
+            test_sender(),
+            test_recipient(),
+            12,
+            0,
+            current_time,
+        );
+
+        assert_eq!(transfer.status, TransferStatus::Pending);
+        assert_eq!(transfer.completion_percentage(), 0);
+
+        // Lock confirmed
+        transfer.confirm_lock(vec![0x11; 32], 100, current_time + 10);
+        assert_eq!(transfer.status, TransferStatus::Locked);
+        assert_eq!(transfer.completion_percentage(), 25);
+
+        // Update confirmations
+        transfer.update_confirmations(6, current_time + 100);
+        assert_eq!(transfer.status, TransferStatus::Locked);
+
+        transfer.update_confirmations(12, current_time + 200);
+        assert_eq!(transfer.status, TransferStatus::Confirmed);
+        assert_eq!(transfer.completion_percentage(), 50);
+
+        // Mint confirmed
+        transfer.confirm_mint(vec![0x22; 32], current_time + 300);
+        assert_eq!(transfer.status, TransferStatus::Completed);
+        assert_eq!(transfer.completion_percentage(), 100);
+    }
+
+    #[test]
+    fn test_transfer_manager() {
+        let mut manager = TransferManager::new();
+        let current_time = 1700000000;
+
+        let id = manager
+            .create_inbound(
+                ChainType::Ethereum,
+                AssetId::eth(),
+                1000,
+                test_sender(),
+                test_recipient(),
+                12,
+                current_time,
+            )
+            .unwrap();
+
+        assert!(manager.get(&id).is_some());
+        assert_eq!(manager.pending_transfers().len(), 1);
+
+        // Confirm lock
+        manager.confirm_lock(&id, vec![0x11; 32], 100, current_time + 10).unwrap();
+
+        // Update confirmations
+        manager.update_confirmations(&id, 12, current_time + 100).unwrap();
+
+        // Should be ready for confirmation
+        assert_eq!(manager.ready_for_confirmation().len(), 1);
+
+        // Confirm mint
+        manager.confirm_mint(&id, vec![0x22; 32], current_time + 200).unwrap();
+
+        let transfer = manager.get(&id).unwrap();
+        assert_eq!(transfer.status, TransferStatus::Completed);
+    }
+
+    #[test]
+    fn test_transfer_expiry() {
+        let mut manager = TransferManager::new();
+        let current_time = 1700000000;
+
+        let id = manager
+            .create_inbound(
+                ChainType::Ethereum,
+                AssetId::eth(),
+                1000,
+                test_sender(),
+                test_recipient(),
+                12,
+                current_time,
+            )
+            .unwrap();
+
+        // Set expiry
+        if let Some(transfer) = manager.get_mut(&id) {
+            transfer.expires_at = current_time + 1000;
+        }
+
+        // Not expired yet
+        let expired = manager.expire_old_transfers(current_time + 500);
+        assert!(expired.is_empty());
+
+        // Expired
+        let expired = manager.expire_old_transfers(current_time + 1500);
+        assert_eq!(expired.len(), 1);
+
+        let transfer = manager.get(&id).unwrap();
+        assert_eq!(transfer.status, TransferStatus::Expired);
+    }
+
+    #[test]
+    fn test_transfer_stats() {
+        let mut manager = TransferManager::new();
+        let current_time = 1700000000;
+
+        // Create transfers
+        let id1 = manager
+            .create_inbound(
+                ChainType::Ethereum,
+                AssetId::eth(),
+                1000,
+                test_sender(),
+                test_recipient(),
+                12,
+                current_time,
+            )
+            .unwrap();
+
+        let _id2 = manager
+            .create_outbound(
+                ChainType::Ethereum,
+                AssetId::eth(),
+                500,
+                test_recipient(),
+                test_sender(),
+                12,
+                current_time,
+            )
+            .unwrap();
+
+        // Complete one
+        manager.confirm_lock(&id1, vec![0x11; 32], 100, current_time).unwrap();
+        manager.update_confirmations(&id1, 12, current_time).unwrap();
+        manager.confirm_mint(&id1, vec![0x22; 32], current_time).unwrap();
+
+        let stats = manager.stats();
+        assert_eq!(stats.total_count, 2);
+        assert_eq!(stats.completed_count, 1);
+        assert_eq!(stats.pending_count, 1);
+        assert_eq!(stats.inbound_count, 1);
+        assert_eq!(stats.outbound_count, 1);
+    }
+}

crates/synor-bridge/src/vault.rs

@@ -0,0 +1,519 @@
+//! Bridge Vault
+//!
+//! Manages locked assets for cross-chain transfers.
+//! Assets are locked in vaults on the source chain and
+//! wrapped tokens are minted on the destination chain.
+
+use crate::{AssetId, BridgeAddress, BridgeError, BridgeResult, ChainType};
+use borsh::{BorshDeserialize, BorshSerialize};
+use serde::{Deserialize, Serialize};
+use sha2::{Digest, Sha256};
+use std::collections::HashMap;
+use std::fmt;
+
+/// Unique vault identifier
+#[derive(Debug, Clone, PartialEq, Eq, Hash, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct VaultId(pub String);
+
+impl VaultId {
+    /// Create a new vault ID
+    pub fn new(id: impl Into<String>) -> Self {
+        Self(id.into())
+    }
+
+    /// Generate vault ID from asset
+    pub fn from_asset(asset: &AssetId, chain: &ChainType) -> Self {
+        let mut hasher = Sha256::new();
+        hasher.update(chain.to_string().as_bytes());
+        hasher.update(asset.identifier.as_bytes());
+        Self(hex::encode(&hasher.finalize()[..16]))
+    }
+}
+
+impl fmt::Display for VaultId {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        write!(f, "{}", self.0)
+    }
+}
+
+/// Locked asset record
+#[derive(Debug, Clone, Serialize, Deserialize, BorshSerialize, BorshDeserialize)]
+pub struct LockedAsset {
+    /// Asset being locked
+    pub asset: AssetId,
+    /// Amount locked
+    pub amount: u128,
+    /// Who locked the asset
+    pub owner: BridgeAddress,
+    /// Recipient on destination chain
+    pub recipient: BridgeAddress,
+    /// Lock timestamp (Unix seconds)
+    pub locked_at: u64,
+    /// Lock expiry (for timelock, 0 = no expiry)
+    pub expires_at: u64,
+    /// Transaction hash on source chain
+    pub lock_tx_hash: Option<Vec<u8>>,
+    /// Whether the asset has been released
+    pub released: bool,
+}
+
+impl LockedAsset {
+    /// Create a new locked asset record
+    pub fn new(
+        asset: AssetId,
+        amount: u128,
+        owner: BridgeAddress,
+        recipient: BridgeAddress,
+        locked_at: u64,
+    ) -> Self {
+        Self {
+            asset,
+            amount,
+            owner,
+            recipient,
+            locked_at,
+            expires_at: 0,
+            lock_tx_hash: None,
+            released: false,
+        }
+    }
+
+    /// Set expiry time
+    pub fn with_expiry(mut self, expires_at: u64) -> Self {
+        self.expires_at = expires_at;
+        self
+    }
+
+    /// Set lock transaction hash
+    pub fn with_tx_hash(mut self, tx_hash: Vec<u8>) -> Self {
+        self.lock_tx_hash = Some(tx_hash);
+        self
+    }
+
+    /// Check if the lock has expired
+    pub fn is_expired(&self, current_time: u64) -> bool {
+        self.expires_at > 0 && current_time >= self.expires_at
+    }
+
+    /// Mark as released
+    pub fn release(&mut self) {
+        self.released = true;
+    }
+}
+
+/// Vault state
+#[derive(Debug, Clone, Copy, PartialEq, Eq, Serialize, Deserialize)]
+pub enum VaultState {
+    /// Vault is active and accepting deposits
+    Active,
+    /// Vault is paused (no new deposits)
+    Paused,
+    /// Vault is deprecated (migration needed)
+    Deprecated,
+}
+
+/// Asset vault for a specific chain
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct Vault {
+    /// Vault identifier
+    pub id: VaultId,
+    /// Chain this vault is on
+    pub chain: ChainType,
+    /// Asset managed by this vault
+    pub asset: AssetId,
+    /// Current vault state
+    pub state: VaultState,
+    /// Total locked amount
+    pub total_locked: u128,
+    /// Individual locked assets by lock ID
+    locked_assets: HashMap<String, LockedAsset>,
+    /// Vault address (contract address for EVM)
+    pub vault_address: Option<BridgeAddress>,
+    /// Admin addresses
+    pub admins: Vec<BridgeAddress>,
+    /// Daily limit (0 = unlimited)
+    pub daily_limit: u128,
+    /// Today's usage
+    daily_usage: u128,
+    /// Last reset timestamp
+    last_reset: u64,
+}
+
+impl Vault {
+    /// Create a new vault
+    pub fn new(id: VaultId, chain: ChainType, asset: AssetId) -> Self {
+        Self {
+            id,
+            chain,
+            asset,
+            state: VaultState::Active,
+            total_locked: 0,
+            locked_assets: HashMap::new(),
+            vault_address: None,
+            admins: Vec::new(),
+            daily_limit: 0,
+            daily_usage: 0,
+            last_reset: 0,
+        }
+    }
+
+    /// Set vault address
+    pub fn with_address(mut self, address: BridgeAddress) -> Self {
+        self.vault_address = Some(address);
+        self
+    }
+
+    /// Set daily limit
+    pub fn with_daily_limit(mut self, limit: u128) -> Self {
+        self.daily_limit = limit;
+        self
+    }
+
+    /// Add admin
+    pub fn add_admin(&mut self, admin: BridgeAddress) {
+        if !self.admins.contains(&admin) {
+            self.admins.push(admin);
+        }
+    }
+
+    /// Lock assets in the vault
+    pub fn lock(
+        &mut self,
+        lock_id: impl Into<String>,
+        amount: u128,
+        owner: BridgeAddress,
+        recipient: BridgeAddress,
+        current_time: u64,
+    ) -> BridgeResult<()> {
+        // Check vault state
+        if self.state != VaultState::Active {
+            return Err(BridgeError::BridgePaused);
+        }
+
+        // Check daily limit
+        self.check_daily_limit(amount, current_time)?;
+
+        let lock_id = lock_id.into();
+        if self.locked_assets.contains_key(&lock_id) {
+            return Err(BridgeError::TransferAlreadyExists(lock_id));
+        }
+
+        let locked = LockedAsset::new(
+            self.asset.clone(),
+            amount,
+            owner,
+            recipient,
+            current_time,
+        );
+
+        self.locked_assets.insert(lock_id, locked);
+        self.total_locked += amount;
+        self.daily_usage += amount;
+
+        Ok(())
+    }
+
+    /// Unlock assets from the vault
+    pub fn unlock(&mut self, lock_id: &str) -> BridgeResult<LockedAsset> {
+        let locked = self
+            .locked_assets
+            .get_mut(lock_id)
+            .ok_or_else(|| BridgeError::TransferNotFound(lock_id.to_string()))?;
+
+        if locked.released {
+            return Err(BridgeError::TransferAlreadyCompleted(lock_id.to_string()));
+        }
+
+        locked.release();
+        self.total_locked = self.total_locked.saturating_sub(locked.amount);
+
+        Ok(locked.clone())
+    }
+
+    /// Get locked asset
+    pub fn get_locked(&self, lock_id: &str) -> Option<&LockedAsset> {
+        self.locked_assets.get(lock_id)
+    }
+
+    /// Check and update daily limit
+    fn check_daily_limit(&mut self, amount: u128, current_time: u64) -> BridgeResult<()> {
+        if self.daily_limit == 0 {
+            return Ok(());
+        }
+
+        // Reset daily usage if new day
+        let day = current_time / 86400;
+        let last_day = self.last_reset / 86400;
+        if day > last_day {
+            self.daily_usage = 0;
+            self.last_reset = current_time;
+        }
+
+        // Check limit
+        if self.daily_usage + amount > self.daily_limit {
+            return Err(BridgeError::RateLimitExceeded);
+        }
+
+        Ok(())
+    }
+
+    /// Pause the vault
+    pub fn pause(&mut self) {
+        self.state = VaultState::Paused;
+    }
+
+    /// Resume the vault
+    pub fn resume(&mut self) {
+        self.state = VaultState::Active;
+    }
+
+    /// Deprecate the vault
+    pub fn deprecate(&mut self) {
+        self.state = VaultState::Deprecated;
+    }
+
+    /// Get all locked assets
+    pub fn all_locked(&self) -> impl Iterator<Item = (&String, &LockedAsset)> {
+        self.locked_assets.iter()
+    }
+
+    /// Get active (unreleased) locked assets
+    pub fn active_locked(&self) -> impl Iterator<Item = (&String, &LockedAsset)> {
+        self.locked_assets.iter().filter(|(_, l)| !l.released)
+    }
+
+    /// Get expired locked assets
+    pub fn expired_locked(&self, current_time: u64) -> impl Iterator<Item = (&String, &LockedAsset)> {
+        self.locked_assets
+            .iter()
+            .filter(move |(_, l)| !l.released && l.is_expired(current_time))
+    }
+}
+
+/// Vault manager for multiple vaults
+pub struct VaultManager {
+    /// Vaults by ID
+    vaults: HashMap<VaultId, Vault>,
+    /// Vault lookup by (chain, asset)
+    by_chain_asset: HashMap<(ChainType, String), VaultId>,
+}
+
+impl VaultManager {
+    /// Create a new vault manager
+    pub fn new() -> Self {
+        Self {
+            vaults: HashMap::new(),
+            by_chain_asset: HashMap::new(),
+        }
+    }
+
+    /// Create and register a new vault
+    pub fn create_vault(&mut self, chain: ChainType, asset: AssetId) -> VaultId {
+        let vault_id = VaultId::from_asset(&asset, &chain);
+
+        let vault = Vault::new(vault_id.clone(), chain.clone(), asset.clone());
+
+        self.by_chain_asset
+            .insert((chain, asset.identifier.clone()), vault_id.clone());
+        self.vaults.insert(vault_id.clone(), vault);
+
+        vault_id
+    }
+
+    /// Get vault by ID
+    pub fn get_vault(&self, vault_id: &VaultId) -> Option<&Vault> {
+        self.vaults.get(vault_id)
+    }
+
+    /// Get mutable vault by ID
+    pub fn get_vault_mut(&mut self, vault_id: &VaultId) -> Option<&mut Vault> {
+        self.vaults.get_mut(vault_id)
+    }
+
+    /// Find vault by chain and asset
+    pub fn find_vault(&self, chain: &ChainType, asset: &AssetId) -> Option<&Vault> {
+        self.by_chain_asset
+            .get(&(chain.clone(), asset.identifier.clone()))
+            .and_then(|id| self.vaults.get(id))
+    }
+
+    /// Find mutable vault by chain and asset
+    pub fn find_vault_mut(&mut self, chain: &ChainType, asset: &AssetId) -> Option<&mut Vault> {
+        let vault_id = self
+            .by_chain_asset
+            .get(&(chain.clone(), asset.identifier.clone()))?
+            .clone();
+        self.vaults.get_mut(&vault_id)
+    }
+
+    /// Get or create vault for asset
+    pub fn get_or_create_vault(&mut self, chain: ChainType, asset: AssetId) -> &mut Vault {
+        let key = (chain.clone(), asset.identifier.clone());
+        if !self.by_chain_asset.contains_key(&key) {
+            self.create_vault(chain.clone(), asset.clone());
+        }
+        let vault_id = self.by_chain_asset.get(&key).unwrap().clone();
+        self.vaults.get_mut(&vault_id).unwrap()
+    }
+
+    /// Get total locked value across all vaults
+    pub fn total_locked(&self) -> u128 {
+        self.vaults.values().map(|v| v.total_locked).sum()
+    }
+
+    /// Get total locked value for an asset
+    pub fn total_locked_for_asset(&self, asset: &AssetId) -> u128 {
+        self.vaults
+            .values()
+            .filter(|v| v.asset.identifier == asset.identifier)
+            .map(|v| v.total_locked)
+            .sum()
+    }
+
+    /// List all vault IDs
+    pub fn vault_ids(&self) -> Vec<VaultId> {
+        self.vaults.keys().cloned().collect()
+    }
+}
+
+impl Default for VaultManager {
+    fn default() -> Self {
+        Self::new()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    fn test_owner() -> BridgeAddress {
+        BridgeAddress::from_eth([0xaa; 20])
+    }
+
+    fn test_recipient() -> BridgeAddress {
+        BridgeAddress::from_synor([0xbb; 32])
+    }
+
+    #[test]
+    fn test_vault_id() {
+        let asset = AssetId::eth();
+        let id = VaultId::from_asset(&asset, &ChainType::Ethereum);
+        assert!(!id.0.is_empty());
+    }
+
+    #[test]
+    fn test_lock_unlock() {
+        let mut vault = Vault::new(
+            VaultId::new("test"),
+            ChainType::Ethereum,
+            AssetId::eth(),
+        );
+
+        let current_time = 1700000000;
+
+        // Lock
+        vault
+            .lock("lock1", 1000, test_owner(), test_recipient(), current_time)
+            .unwrap();
+
+        assert_eq!(vault.total_locked, 1000);
+        assert!(vault.get_locked("lock1").is_some());
+
+        // Unlock
+        let released = vault.unlock("lock1").unwrap();
+        assert_eq!(released.amount, 1000);
+        assert!(released.released);
+        assert_eq!(vault.total_locked, 0);
+    }
+
+    #[test]
+    fn test_duplicate_lock() {
+        let mut vault = Vault::new(
+            VaultId::new("test"),
+            ChainType::Ethereum,
+            AssetId::eth(),
+        );
+
+        vault
+            .lock("lock1", 1000, test_owner(), test_recipient(), 0)
+            .unwrap();
+
+        // Duplicate should fail
+        let result = vault.lock("lock1", 500, test_owner(), test_recipient(), 0);
+        assert!(result.is_err());
+    }
+
+    #[test]
+    fn test_vault_pause() {
+        let mut vault = Vault::new(
+            VaultId::new("test"),
+            ChainType::Ethereum,
+            AssetId::eth(),
+        );
+
+        vault.pause();
+
+        let result = vault.lock("lock1", 1000, test_owner(), test_recipient(), 0);
+        assert!(matches!(result, Err(BridgeError::BridgePaused)));
+    }
+
+    #[test]
+    fn test_daily_limit() {
+        let mut vault = Vault::new(
+            VaultId::new("test"),
+            ChainType::Ethereum,
+            AssetId::eth(),
+        )
+        .with_daily_limit(1000);
+
+        let current_time = 86400 * 100; // Day 100
+
+        // Under limit - OK
+        vault
+            .lock("lock1", 500, test_owner(), test_recipient(), current_time)
+            .unwrap();
+
+        // Exceed limit - fail
+        let result = vault.lock("lock2", 600, test_owner(), test_recipient(), current_time);
+        assert!(matches!(result, Err(BridgeError::RateLimitExceeded)));
+
+        // Next day - reset
+        let next_day = current_time + 86400;
+        vault
+            .lock("lock2", 600, test_owner(), test_recipient(), next_day)
+            .unwrap();
+    }
+
+    #[test]
+    fn test_vault_manager() {
+        let mut manager = VaultManager::new();
+
+        let eth = AssetId::eth();
+        let vault_id = manager.create_vault(ChainType::Ethereum, eth.clone());
+
+        assert!(manager.get_vault(&vault_id).is_some());
+        assert!(manager.find_vault(&ChainType::Ethereum, &eth).is_some());
+
+        // Get or create existing
+        let vault = manager.get_or_create_vault(ChainType::Ethereum, eth.clone());
+        vault.lock("lock1", 100, test_owner(), test_recipient(), 0).unwrap();
+
+        assert_eq!(manager.total_locked(), 100);
+    }
+
+    #[test]
+    fn test_locked_asset_expiry() {
+        let locked = LockedAsset::new(
+            AssetId::eth(),
+            1000,
+            test_owner(),
+            test_recipient(),
+            1000,
+        )
+        .with_expiry(2000);
+
+        assert!(!locked.is_expired(1500));
+        assert!(locked.is_expired(2000));
+        assert!(locked.is_expired(3000));
+    }
+}

crates/synor-ibc/Cargo.toml

@@ -7,7 +7,6 @@ license.workspace = true
 description = "Inter-Blockchain Communication (IBC) protocol for Synor cross-chain interoperability"
 
 [dependencies]
-# Local workspace crates
 synor-types = { path = "../synor-types" }
 synor-crypto = { path = "../synor-crypto" }
 
@@ -18,9 +17,13 @@ borsh = { workspace = true }
 
 # Cryptography
 sha2 = "0.10"
+sha3 = { workspace = true }
 blake3 = { workspace = true }
 rand = { workspace = true }
 
+# Merkle proofs
+rs_merkle = "1.4"
+
 # Async runtime
 tokio = { version = "1", features = ["full"] }
 async-trait = "0.1"
@@ -30,17 +33,13 @@ thiserror = { workspace = true }
 hex = { workspace = true }
 parking_lot = { workspace = true }
 tracing = "0.1"
+chrono = { workspace = true }
 
-# Protobuf (for IBC compatibility)
-prost = "0.13"
-prost-types = "0.13"
-
-# Time handling
-chrono = { version = "0.4", features = ["serde"] }
+# Protobuf for IBC messages (Cosmos compatibility)
+prost = "0.12"
+prost-types = "0.12"
 
 [dev-dependencies]
-tempfile = { workspace = true }
 tokio-test = "0.4"
-
-[build-dependencies]
-prost-build = "0.13"
+proptest = { workspace = true }
+tempfile = { workspace = true }

crates/synor-ibc/src/lib.rs

@@ -1,132 +1,241 @@
-//! Synor IBC - Inter-Blockchain Communication Protocol
+//! Inter-Blockchain Communication (IBC) Protocol for Synor
 //!
-//! This crate implements the IBC protocol for cross-chain communication,
-//! enabling Synor to interoperate with Cosmos SDK chains and other IBC-compatible blockchains.
+//! This crate implements the IBC protocol for cross-chain interoperability,
+//! enabling Synor to communicate with Cosmos ecosystem chains and beyond.
 //!
 //! # Architecture
 //!
 //! ```text
-//! ┌─────────────────────────────────────────────────────────────┐
-//! │                    Synor Blockchain                          │
-//! ├─────────────────────────────────────────────────────────────┤
-//! │  ┌─────────────┐  ┌─────────────┐  ┌─────────────────────┐  │
-//! │  │ IBC Client  │  │ Connection  │  │      Channel        │  │
-//! │  │  (Light     │  │  (Verified  │  │  (Ordered/Unordered │  │
-//! │  │   Client)   │  │   Link)     │  │   Message Passing)  │  │
-//! │  └──────┬──────┘  └──────┬──────┘  └──────────┬──────────┘  │
-//! │         │                │                     │             │
-//! │         └────────────────┼─────────────────────┘             │
-//! │                          │                                   │
-//! │                    ┌─────┴─────┐                             │
-//! │                    │  Packet   │                             │
-//! │                    │  Handler  │                             │
-//! │                    └─────┬─────┘                             │
-//! └──────────────────────────┼──────────────────────────────────┘
-//!                            │
-//!                      ┌─────┴─────┐
-//!                      │  Relayer  │
-//!                      └─────┬─────┘
-//!                            │
-//! ┌──────────────────────────┼──────────────────────────────────┐
-//! │                    Remote Chain                              │
-//! └─────────────────────────────────────────────────────────────┘
+//! ┌─────────────────────────────────────────────────────────────────┐
+//! │                        IBC Protocol Stack                        │
+//! ├─────────────────────────────────────────────────────────────────┤
+//! │  ┌──────────────┐  ┌──────────────┐  ┌──────────────────────┐  │
+//! │  │ Light Client │  │   Channel    │  │     Connection       │  │
+//! │  │ Verification │  │  Management  │  │     Management       │  │
+//! │  └──────────────┘  └──────────────┘  └──────────────────────┘  │
+//! ├─────────────────────────────────────────────────────────────────┤
+//! │  ┌──────────────────────────────────────────────────────────┐  │
+//! │  │                    Packet Relayer                         │  │
+//! │  │  - Packet commitment                                      │  │
+//! │  │  - Acknowledgment handling                                │  │
+//! │  │  - Timeout management                                     │  │
+//! │  └──────────────────────────────────────────────────────────┘  │
+//! ├─────────────────────────────────────────────────────────────────┤
+//! │  ┌──────────────────────────────────────────────────────────┐  │
+//! │  │                    Atomic Swaps (HTLC)                    │  │
+//! │  │  - Hashlock verification                                  │  │
+//! │  │  - Timelock expiration                                    │  │
+//! │  │  - Cross-chain atomicity                                  │  │
+//! │  └──────────────────────────────────────────────────────────┘  │
+//! └─────────────────────────────────────────────────────────────────┘
 //! ```
 //!
 //! # IBC Handshake Flow
 //!
-//! ## Connection Handshake (4-way)
-//! 1. `ConnOpenInit` - Chain A initiates
-//! 2. `ConnOpenTry` - Chain B responds
-//! 3. `ConnOpenAck` - Chain A acknowledges
-//! 4. `ConnOpenConfirm` - Chain B confirms
+//! ```text
+//! Chain A                          Chain B
+//!    │                                │
+//!    ├──── ConnOpenInit ─────────────►│
+//!    │                                │
+//!    │◄─── ConnOpenTry ───────────────┤
+//!    │                                │
+//!    ├──── ConnOpenAck ─────────────►│
+//!    │                                │
+//!    │◄─── ConnOpenConfirm ───────────┤
+//!    │                                │
+//!    │ ═══ Connection Established ═══ │
+//! ```
 //!
-//! ## Channel Handshake (4-way)
-//! 1. `ChanOpenInit` - Chain A initiates
-//! 2. `ChanOpenTry` - Chain B responds
-//! 3. `ChanOpenAck` - Chain A acknowledges
-//! 4. `ChanOpenConfirm` - Chain B confirms
+//! # Quick Start
 //!
-//! # Example
+//! ```rust,ignore
+//! use synor_ibc::{IbcHandler, IbcConfig, ClientState, ConsensusState};
+//! use synor_ibc::{PortId, ChannelOrder, Timeout};
 //!
-//! ```ignore
-//! use synor_ibc::{IbcHandler, ConnectionId, ChannelId};
+//! // Create IBC handler
+//! let handler = IbcHandler::new(IbcConfig::default());
 //!
-//! // Initialize IBC handler
-//! let handler = IbcHandler::new(config);
+//! // Create a light client
+//! let client_id = handler.create_client(client_state, consensus_state)?;
 //!
-//! // Create a connection to a remote chain
-//! let conn_id = handler.connection_open_init(
-//!     client_id,
-//!     counterparty,
-//!     version,
-//! ).await?;
+//! // Open a connection
+//! let conn_id = handler.connection_open_init(client_id, counterparty_client_id, None)?;
 //!
-//! // Open a channel for token transfers
-//! let channel_id = handler.channel_open_init(
-//!     port_id,
-//!     conn_id,
-//!     counterparty_port,
-//!     version,
-//! ).await?;
+//! // Bind a port and open a channel
+//! handler.bind_port(PortId::transfer(), "transfer".to_string())?;
+//! let channel_id = handler.channel_open_init(port, conn_id, counterparty_port, ChannelOrder::Unordered, "ics20-1".to_string())?;
 //!
 //! // Send a packet
-//! handler.send_packet(
-//!     channel_id,
-//!     data,
-//!     timeout,
-//! ).await?;
+//! let sequence = handler.send_packet(port, channel, data, Timeout::height(1000))?;
 //! ```
 
-pub mod client;
-pub mod connection;
+#![allow(dead_code)]
+
+// Core modules
 pub mod channel;
-pub mod packet;
+pub mod client;
 pub mod commitment;
+pub mod connection;
 pub mod error;
 pub mod handler;
+pub mod packet;
 pub mod swap;
 pub mod types;
 
-pub use client::{ClientState, ConsensusState, LightClient};
-pub use connection::{ConnectionEnd, ConnectionState, ConnectionId, Counterparty};
-pub use channel::{Channel, ChannelState, ChannelId, PortId, ChannelOrder};
-pub use packet::{Packet, PacketCommitment, Acknowledgement, Timeout};
-pub use commitment::{CommitmentProof, MerkleProof, MerklePath};
+// Re-exports for convenience
+pub use channel::{
+    Channel, ChannelCounterparty, ChannelId, ChannelManager, ChannelOrder, ChannelState, PortId,
+};
+pub use client::{
+    ClientId, ClientState, ClientType, Commit, CommitSig, ConsensusState, Header, LightClient,
+    SignedHeader, TrustLevel, Validator, ValidatorSet,
+};
+pub use commitment::{
+    channel_path, client_state_path, connection_path, consensus_state_path, next_sequence_ack_path,
+    next_sequence_recv_path, next_sequence_send_path, packet_acknowledgement_path,
+    packet_commitment_path, packet_receipt_path, CommitmentProof, MerklePath, MerkleProof, ProofOp,
+    ProofOpType,
+};
+pub use connection::{
+    ConnectionEnd, ConnectionId, ConnectionManager, ConnectionState,
+    Counterparty as ConnectionCounterparty,
+};
 pub use error::{IbcError, IbcResult};
-pub use handler::IbcHandler;
-pub use swap::{AtomicSwap, Htlc, SwapManager, SwapId, SwapState, SwapAsset, Hashlock, Timelock};
-pub use types::*;
+pub use handler::{IbcConfig, IbcHandler};
+pub use packet::{
+    Acknowledgement, FungibleTokenPacketData, Packet, PacketCommitment, PacketHandler,
+    PacketReceipt, Timeout,
+};
+pub use swap::{
+    AtomicSwap, Hashlock, Htlc, SwapAction, SwapAsset, SwapId, SwapManager, SwapPacketData,
+    SwapState, Timelock,
+};
+pub use types::{ChainId, CommitmentPrefix, Height, Signer, Timestamp, Version};
 
 /// IBC protocol version
-pub const IBC_VERSION: &str = "1";
+pub const IBC_VERSION: &str = "1.0.0";
 
-/// Default packet timeout in blocks
-pub const DEFAULT_TIMEOUT_HEIGHT: u64 = 1000;
+/// Default timeout in blocks
+pub const DEFAULT_TIMEOUT_BLOCKS: u64 = 1000;
 
-/// Default packet timeout in nanoseconds (1 hour)
-pub const DEFAULT_TIMEOUT_TIMESTAMP: u64 = 3_600_000_000_000;
+/// Default timeout in nanoseconds (1 hour)
+pub const DEFAULT_TIMEOUT_NANOS: u64 = 3_600_000_000_000;
 
 /// Maximum packet data size (1 MB)
 pub const MAX_PACKET_DATA_SIZE: usize = 1024 * 1024;
 
-/// Connection prefix for Synor
-pub const SYNOR_CONNECTION_PREFIX: &str = "synor";
-
-/// Well-known port for token transfers
-pub const TRANSFER_PORT: &str = "transfer";
-
-/// Well-known port for interchain accounts
-pub const ICA_PORT: &str = "icahost";
+/// IBC module events
+#[derive(Debug, Clone, serde::Serialize, serde::Deserialize)]
+pub enum IbcEvent {
+    /// Client created
+    CreateClient {
+        client_id: ClientId,
+        client_type: ClientType,
+        consensus_height: Height,
+    },
+    /// Client updated
+    UpdateClient {
+        client_id: ClientId,
+        consensus_height: Height,
+    },
+    /// Connection opened (init)
+    OpenInitConnection {
+        connection_id: ConnectionId,
+        client_id: ClientId,
+        counterparty_client_id: ClientId,
+    },
+    /// Connection opened (try)
+    OpenTryConnection {
+        connection_id: ConnectionId,
+        client_id: ClientId,
+        counterparty_connection_id: ConnectionId,
+    },
+    /// Connection opened (ack)
+    OpenAckConnection { connection_id: ConnectionId },
+    /// Connection opened (confirm)
+    OpenConfirmConnection { connection_id: ConnectionId },
+    /// Channel opened (init)
+    OpenInitChannel {
+        port_id: PortId,
+        channel_id: ChannelId,
+        connection_id: ConnectionId,
+    },
+    /// Channel opened (try)
+    OpenTryChannel {
+        port_id: PortId,
+        channel_id: ChannelId,
+        counterparty_channel_id: ChannelId,
+    },
+    /// Channel opened (ack)
+    OpenAckChannel {
+        port_id: PortId,
+        channel_id: ChannelId,
+    },
+    /// Channel opened (confirm)
+    OpenConfirmChannel {
+        port_id: PortId,
+        channel_id: ChannelId,
+    },
+    /// Channel closed
+    CloseChannel {
+        port_id: PortId,
+        channel_id: ChannelId,
+    },
+    /// Packet sent
+    SendPacket { packet: Packet },
+    /// Packet received
+    ReceivePacket { packet: Packet },
+    /// Packet acknowledged
+    AcknowledgePacket {
+        packet: Packet,
+        acknowledgement: Acknowledgement,
+    },
+    /// Packet timed out
+    TimeoutPacket { packet: Packet },
+    /// Swap initiated
+    SwapInitiated {
+        swap_id: SwapId,
+        initiator: String,
+        responder: String,
+    },
+    /// Swap completed
+    SwapCompleted { swap_id: SwapId },
+    /// Swap refunded
+    SwapRefunded { swap_id: SwapId },
+}
 
 #[cfg(test)]
 mod tests {
     use super::*;
 
     #[test]
-    fn test_constants() {
-        assert_eq!(IBC_VERSION, "1");
-        assert!(DEFAULT_TIMEOUT_HEIGHT > 0);
-        assert!(DEFAULT_TIMEOUT_TIMESTAMP > 0);
-        assert!(MAX_PACKET_DATA_SIZE > 0);
+    fn test_chain_id() {
+        let chain = ChainId::new("synor-1");
+        assert_eq!(chain.to_string(), "synor-1");
+    }
+
+    #[test]
+    fn test_commitment_prefix() {
+        let prefix = CommitmentPrefix::default();
+        assert_eq!(prefix.key_prefix, b"ibc");
+    }
+
+    #[test]
+    fn test_height() {
+        let h = Height::new(1, 100);
+        assert_eq!(h.revision_number, 1);
+        assert_eq!(h.revision_height, 100);
+    }
+
+    #[test]
+    fn test_ibc_handler_creation() {
+        let handler = IbcHandler::default();
+        assert_eq!(handler.chain_id(), "synor-1");
+    }
+
+    #[test]
+    fn test_swap_manager_creation() {
+        let manager = SwapManager::new();
+        assert!(manager.get_active_swaps().is_empty());
     }
 }