Picasso aims to become the DeFi hub of Kusama, connecting parachains with the broader Cosmos ecosystem. Through opening this XCM channel, Statemine assets will have access to Picasso dapps, thereby increasing the utility and TVL of USDT and other Statemine tokens.

For example, we will setup pools for USDT and KSM on Pablo, as well as integrating them within our later released pallets such as CosmWasm. This opens up the possibility to also support these tokens within our IBC bridge that will launch in the future too. 

### Flow

- A force transfer 11 KSM from Kusama treasury (`F3opxRbN5ZbjJNU511Kj2TLuzFcDq9BGduA9TgiECafpg29`) to Statemine (`F7fq1jSNVTPfJmaHaXCMtatT1EZefCUsa7rRiQVNR5efcah`). 10 KSM used as deposit for channels. 1 KSM for transaction fees payments.

- Send XCM message to Statemine to execute [0x1f000101000214000400000000070010a5d4e81300000000070010a5d4e800060003009435775c1802083c01270800003c0027080000e803000000900100140d01010000000004000101006d6f646c70792f74727372790000000000000000000000000000000000000000](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fstatemine.api.onfinality.io%2Fpublic-ws#/extrinsics/decode/0x1f000101000214000400000000070010a5d4e81300000000070010a5d4e800060003009435775c1802083c01270800003c0027080000e803000000900100140d01010000000004000101006d6f646c70792f74727372790000000000000000000000000000000000000000)

This message does the following:

- Statemine sends message back to Kusama
- Puts 1 KSM into holder from Parachain 1000 account
- Sets 1 KSM as payment asset
- Executes batch transaction [0x1802083c01270800003c0027080000e803000000900100](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkusama.api.onfinality.io%2Fpublic-ws#/extrinsics/decode/0x1802083c01270800003c0027080000e803000000900100)
- Accepts open channel request from Picasso 2087
- Sends open channel request to Picasso 2087 with default parameters
- Remaining fee assets are returned back to Treasury account `F3opxRbN5ZbjJNU511Kj2TLuzFcDq9BGduA9TgiECafpg29`

source

dest

value

message

- Picasso wants to connect different parts of the Cosmos ecosystem.
- They want to make it easier for people to use USDT and other tokens on their platform.
- They are transferring some KSM tokens and sending a message to make this happen.
- They are also setting up pools for USDT and KSM on their platform.
- They are working on a bridge to connect different tokens in the future.

#248 Open HRMP cross-chain communication channel between Picasso and Statemine