Thx for your reply Zaki, but does the DEX zone not contradict with the following lines from the whitepaper?
Tokens can be transferred from one zone to another securely and quickly without the need for exchange liquidity between zones. Instead, all inter-zone token transfers go through the Cosmos Hub, which keeps track of the total amount of tokens held by each zone.
That gave me the idea that there won’t be a DEX zone necessary (solving the liquidity problem), as the Cosmos Hub would keep track of the tokens being held in each zone
So would it perhaps go as follows: User A sends 1 BTC to the Cosmos BTC Peg → 1 BTC is getting locked, and 1 CosmosBTC is being created → user A sends 1 CosmosBTC to CosmosETH address → the Hub locks/burns the 1 CosmosBTC → Hub creates 10 CosmosETH in CosmosETH’s address (ETH Peg) → User A needs to trade 10 CosmosETH on a DEX for real ETH.
That would solve the liquidity problem in between peg zones. Liquidity only would come into play when you’d want to exchange CosmosETH for real ETH
But that would leave me with the question (as well as in your scenario, as well as in mine): What happens with the locked in BTC user A sent to the BTC Peg. Because if you’d take the same route from ETH you end up with 1 CosmosBTC you’d need to trade via a dex for real BTC.
Would the BTC be locked into the Cosmos Hub forever? Or are they also unlockable by people that would want to convert CosmosBTC for real BTC? Making it not the only way to change CosmosBTC for real BTC.