We at the Pendulum Foundation propose opening a bi-directional HRMP channel between Amplitude and Statemine, the Kusama reserve chain. Connecting the Amplitude parachain with the Kusama reserve chain opens up several use cases today, and puts Amplitude on the path towards becoming the connected fiat platform in the DotSama ecosystem. 

# Use cases

The Statemine reserve chain sits at the core of cross-chain transactions. Opening a bi-directional **Horizontal Relay-routed Message Passing (”HRMP”) channel** would allow assets from Statemine to Amplitude and back (only *from* Statemine *to* Amplitude, the reverse). This brings liquidity to the Amplitude network, where it can be used for liquidity provisioning between $USDT and $AMPE on Amplitude network.

# Proposal

## Open a bi-directional channel

A bi-directional channel will allow both Amplitude and Statemine to transfer assets between the two parachains using XCM. This means token native to one parachain can be transferred to the other and vice-versa. Note that the assets of Amplitude cannot be transferred to Statemine because Statemine does not support foreign assets.

1. In order to create a bi-directional channel, both Amplitude and Statemine will need to make an `open request` and accept the open request from the other chain. This involves successful referendum on both networks. 
2. Three proposals would be required in total. Two from Amplitude and one from Kusama:
    1. **Proposal 1: Amplitude opens HRMP channel request to Statemine**
    2. **Proposal 2: Kusama instruct Statemine to accept open HRMP channel request from Amplitude and make open HRMP channel request to Amplitude**
    3. **Proposal 3: Amplitude accept open HRMP channel from Statemine**

## Technical Details

The proposed channel parameters:

- Proposed max capacity:  `1000`
- Proposed max message size: `102 400`

The parameters that are chosen here are set to the maximum acceptable values of Kusama configuration, to allow for future scalability.

Keen to get inputs of the community.

- They want to connect two platforms called Amplitude and Statemine.
- This connection will allow assets to be transferred between the two platforms.
- They need to make proposals and get approval from both platforms to open the connection.
- The proposed channel will have a maximum capacity and message size.
- They want input from the community.

#2040 Open bi-directional HRMP channel between Statemine and Amplitude