(CCBL) ActiSwap - The first trustless P2P NFT swap for Secret Network

[Wesleyjordan]

(CCBL) ActiSwap on ActiList

The first trustless P2P swap for Secret Network

Abstract

This proposal´s goal is an on-chain CCBL request to create the first trustless P2P swap tool for Secret Network (A Peer-to-Peer Exchange contract for the Secret Network blockchain) to enable users of the Secret Network to swap/trade their sNFT’s (snip-721) and potentially other secret assets (SNIP-20) without the need of an escrow/middleman or the need to trust anyone, but a smart contract.

For an example of a similar tool on a public blockchain, as well as the initial code source for this project, please visit Pegasus Swap. https://app.pegasus-trade.zone/trade

Introduction

The main difficulty in p2p trades on secret being dishonest individuals taking advantage of the OTC / P2P trading and scamming people is the reason we wanted to create a tool that can facilitate those trades with full security and completely trustless.

As P2P trades are not only a thing on Secret Network but a general trading manner on any blockchain, we find that a P2P trading tool would help all of Secret Network’s users, additionally to enabling trades for any SNIP assets, whether they are on a marketplace or not.

About ActiSwap

ActiSwap’s goal is clear: Facilitate trustless and secure P2P swaps/trades between 2 Secret Network users.

NFT owners will need to import their NFTs on the ActiList platform in order to be able to look up NFTs for a swap proposal and receive automatic notifications when the swap proposal is created. If the ownership of an NFT is public, a notification containing the swap link is guaranteed to reach the owner of the asset. If ownership of the NFT is not public, a swap notification will be sent to the last known owner (user who imported NFT into ActiList or purchased it on ActiList). There might be a chance that notification will reach the wrong user, and the receiving side will be able to cancel such a swap. Alternatively users will be able to share swap links directly via external chatting tools. Private swaps will be free of charge for users (except for gas cost).

The base functionality of ActiSwap will inherit parts of the logic from Pegasus Zone on Stargaze (GitHub - pegasuszone/pegasus: A Peer-to-Peer Exchange contract for the stargaze blockchain).

Swap flow and UI will work as follows:

• User A creates a swap proposal by approving their selected NFTs and sending them to the swap smart contract.
• Swap url will be created and automatically shared with user B. User A can also independently share a swap link with user B.
• If user B approves the requested NFT/s and finalizes the swap then the swap will execute automatically.

Below you will see a Concept of the UI/UX of the swap (This is just a draft to visualize the concept, all features will be added but are not visible yet)

Example:

Anna wants to trade her AnonNFT (#007) for 5 SCRT Wolves (#001, #123, #300, #400, #500) from Benjamin.

Anna and Benjamin have to import their NFT assets on actilist.io to make them searchable, and to let ActiList know who should be notified when relevant swap proposals are created.

Now Anna can create a swap proposal on actilist.io, by connecting her wallet and navigating to swap tool ActiSwap. In the tab “Your Inventory’’ Anna looks up her AnonNFT #007 as the NFT she wants to trade and once selected it will appear on the right side. Then she clicks on the tab “Their Inventory” on the left side and types in the collection’s contract address or collection’s name, in this case “Wolf Pack” or “SCRT Wolves” or “secret1su20a5yv7zwvv9s8etr6mjt0da7zgv4ljm6vcy”.

She will be shown all SCRT Wolf NFT’s that were imported on Actilist. Without the import of NFTs, Anna would not see Benjamin’s NFTs in the UI. Anna chooses the desired NFTs (5xSCRT Wolves with specific ids) out of the shown Wolf NFTs for the swap offer. Anna controls the trade offer she wants to send to Benjamin on the right panel, then she sends it off with the “Send trade offer” button. Upon submitting a proposal Benjamin will be automatically notified with a message containing the swap link. Optionally Anna will be able to share a direct link with the other trade participant if their contacts are known.

Benjamin receives a message from ActiList about the incoming swap proposal. By following the link from the message Benjamin will be navigated to the swap proposal. If the proposed offer makes sense Benjamin approves the 5 SCRT Wolves for the trade and then clicks a button that says “Execute Trade” (see orange button). Anna and Benjamin both receive the desired assets.

TLDR

• Anna and Benjamin trade. 1 AnonNFT vs 5 SCRT Wolves
• Anna and Benjamin import their NFT assets on ActiList
• Anna connects to ActiList and navigates to AS
• Anna chooses the AnonNFT for trade, then searches for the NFTs she wants via collection name or collection contract address. Swap proposal is automatically sent to Benjamin
• Benjamin connects to ActiList and follows up the swap link from notification.
• He reviews the swap offer, rejects or accepts it. When accepted, he attaches his NFT assets to the swap offer and the trade is executed after an approving tx from Benjamin
• Both Anna and Benjamin receive their desired NFTs. Trustless P2P trade is completed!

Benefits of p2p swaps on ActiList:

• Trustless swap;
• Decentralized since nobody has any influence on your trade but yourself
• Clear view on what is included in the trade
• Accessible for everyone in the Secret Network ecosystem
• Swapping is free of charge for the Secret Network ecosystem
• Decreases scams, keeps Secret Network safer

Additional infos:

ActiSwap will be developed by the ActiList team. Given they will do the complete development work, they will be the legal owner of this swap tool and most of the budget will be used for the development work. The work on the AS tool will start as soon as the CCBL funds may be received, with no additional waiting time.

Process/Roadmap ActiSwap:

Development:

• Using parts of the Pegasus swap (open resource/ permission of pegasus already granted)
• Adjusting it for Secret Network
• Indexing imported NFT assets for search
• Creating swap proposal by approving selected NFT assets and specifying what other NFT assets should be received in return
• Notifying the NFT owner with automatic notification containing a swap link
• NFT owner can accept the request by approving the requested NFT assets and signing off the final transaction.
• Swap contract will exchange NFT assets

UI/UX:

• Documentation/usage of the swap/ tutorials
• Designing the webpage/icon creation
• Branding/ UX
• Turning existing designs into code (dev related)

Outcome of this proposal (CCBL/MVP)

The result of this proposal will be a Minimally Viable Product (MVP) that will be working on Testnet.

Once deployed on Testnet you will have a possibility to test this swap tool and share your feedback.

Based on your feedback we will be creating a new proposal to fix any issues and make this swap tool production ready on Mainnet.

Future Outlook

The above mentioned flows and functions are the initially intended ones that we want to create and make available to the public with this CCBL Proposal.

Additionally to the shown functions, we see many ways to increase functionality, UX and value for the Secret Network from ActiSwap

Integrating chat solution

Chat with your trading partner (what you would usually do on Discord, if you know the owner of the NFT you want). Additionally chat with NFT owners that you don’t personally know, without finding out any of their private/personal info.

Currency tokens

Adding possibility to swap currency tokens (snip-20) alongside NFT (snip-721)

For example: Trades could also be 1 Anon NFT vs. 3 SCRT Wolves + 250 sSCRT

Sale verifications

Verifying sale contents

Public swaps available on marketplace

Public swaps should be available on the marketplace to reach a broader audience.

Trade History

See the full history of all your trades on ActiList

Sustainability

Since we will ask to make this tool for the Secret Network and it is to be used publicly for our ecosystem, this swap is a free tool. When we create the public swap, this will be used with a small fee. Meaning this will be a private swap to use for everyone when you import your NFT into ActiList. Meaning you can use every NFT on Secret Network, as long as you import this on ActiList.io.

Privacy

NFT swap (ActiSwap) on ActiList from a UX POV will be “private”. The participants of a trade do not need to know each other’s name or SCRT address, nor that Person X owns NFT Y. If a NFT is imported on actilist.io, their owner can receive swap proposals from any other user on ActiList, unless the NFT owner explicitly specifies they don’t want to receive swap notifications. No exchange of information between 2 users is necessary prior to NFT swap, as long as the underlying NFTs are imported on ActiList.

The transfer/swap of the NFT has to be validated on-chain as a transaction. The main transaction of the swap trade, after Person B signs off the swap, will only reveal the SCRT address of person B and the status of the final tx. Trade/swap contents, including the SCRT address of person A will not be revealed. There will be separate txs where person A and person B approve their NFT assets. Approval txs will reveal sender’s SCRT address and underlying NFTs.

Therefore there may be varying information about the swaps on chain and the swap is not guaranteed to be fully private. If a person interacts with our smart contract, the interaction will always be visible, but it would not directly reveal contents of the trade.

The Team

We will have a team of 5 people planning, creating and adjusting the swap to the requirements of the MVP.

Ilja (founder of ActiList) will lead the development work, 20+ years experience as a backend developer and the last 3 years developing smart contracts.

Relevant contributions:

Hippo CMS/Bloomreach CMS (open source), most valuable contributor award

European Patent Office, core contributor to automating patent submissions

actilist.io (Secret Network): founder and core developer

Wesley (head of marketing at ActiList) will lead the design and marketing of the swap and will look out to see the UX and UI being easy to use when MVP is live, 5+ years of experience in leading, design and marketing and is a former IGC and Secret Agency Lead.

Relevant contributions:

WeGrow agency

Sales manager at a partner of Ziggo/KPN

Ecommerce and partner of bol.com (like amazon)

International Growth committee Secret network Lead

Secret Agency Lead

Couple degrees in Socials, Editing and designing.

Vice chairman of a housing corporation

Salim (frontend developer at Actilist) Will turn design into code and connect the front end to the smart contracts and backend servers. 4+ years experience with projects.

Relevant contributions:

actilist.io (Secret Network)

Yoiu (Secret Network)

Eland

Jesse (Full stack/Smart contract developer at ActiList) will be developing swap smart contracts together with the dev team. He has more than 5 years experience of smart contract development.

Relevant contributions:

BladeLabs: boosted vault strategy on Solana

implemented and tested the vault that performs recursive staking/lending/borrowing to boost farming based on the parameters of the DeFi protocols like Marinade Solend

Jet.

Nakamura (Full stack/Smart contract developer at ActiList) will be developing swap smart contracts and accompanying backend functionality together with the dev team. He has more than 5 years experience of smart contract development.

Relevant contributions:

staking.solluminati.io (Solana)

clashofcars.io (Solana)

appleheadfinance.com(Solana)

bridgenetwork.com(EVM)

dogboss.org(EVM)

Budget Request

The Actilist team requested a budget for the compensated roles, as well as a discretionary budget to pay for marketing and maintenance purposes, regarding launch publicity and longevity of the project.

Compensated Roles

ActiList Team:

Ilja Backend Developer

Wesley Head of marketing / Design

Salim UI/UX Frontend Developer

Nakamura Full stack/Smart contract Developer

Jesse Full stack/Smart contract developer

Total Ask

Technical development: $ 20,000 (avg. $40/h for 100 hours á 5 team members)

Planning and Organization: 1500$ fixed (avg. 25$/h for 60 hours, split across all agile tasks)

Total Proposal Spend:

$21500

25,000 SCRT @ $.86

[SecretSaturn]

How would redactiswap be sustained in the future ?

[vadimfrisson]

I like the new proposed functionality, which can attract new users and as a consequence, liquidity. Will this apply to all SNIP 721 tokens?

[Ilja]

We would really like to offer private swaps free of charge (only tx cost) to attract new users and make it another unique selling point of ActiList. We anticipate also public swaps which will be built on top of private swaps, and because they are public, there will be some sort of verification before putting public swap online for everyone to see. Also public swaps are more powerful because they are reaching out to more potential buyers. So for public swaps it would be reasonabe to charge a fee. In the worst case scenario we can let private swaps run with a small fee to maintain itself.

[Wesleyjordan]

Yes this will apply for all Thanks for the feedback

[Fyveonit]

I support a P2P trading system being built on SCRT by all means.

But I don’t feel SCRT itself should have to foot the bill to Fork a Stargaze project from the team that couldn’t draw their own Rabbit.

Redacted Club is a strategic partner, the mock up has RC branding, the proposal opens with the DMCA situation. If you ask me that muddies the waters on a legal standpoint for SCRT / Actilist to fund a project trying to circumvent a DMCA if they do provide a grant / provide a venue to facilitate trades.

If this bounty is to be claimed, it should come from a team that can build it on their owns means, and not have to trace a Rabbit or Fork someone’s work.

[Wesleyjordan]

So basically this isnt created by redacted club but by ActiList. Its not going to be a fork, we are just reusing parts of the code to speed up the process. Since redacted Club came with the suggestion we partnered up. Actilist as the team that builts it. We called it Redacti Swap since it nicely matched with our names. next to this, its not for redacted club but for everyone. The mockup will not have a RC branding, just a RC support below for bringing up this idea and helping to forward this path.

The DMCA situation has nothing to do with this swap, this was the reason that they reached out to us in the first place because ActiList was a new NFT platform and were curious about the legal standpoints regarding the DMCA on Stashh. After this talk they came up with this suggestion of a Swap on Secret network and we liked the idea. So thats why they mentioned this in the beginning of the Forum post.

[Fyveonit]

Same reason STASHH didn’t want to be held accountable when the DMCA hit. ActiList is now going to be the one facilitating the trade of counterfeit IP?

STASHH wasn’t affiliated but was still accountable for what’s going on regarding their site / servers…

I don’t feel the grants program should participate here

[Wesleyjordan]

ITS not about facilitating redacted club, Its facilitating the Secret network ecosystem to have a safe way to trade their NFT’s. Nothing more nothing less. So each person can trade without being scammed by people. So delete the DMCA part, since it has nothing to do with this. Im not very familiar in this case of Stashh and the DMCA but this DMCA was about the public picture of redacted rabbit on their website and there were other possibilities to relaunch as long as it was private. So this swap will be private, just like you trade something in real life with someone else. just 1 on 1.

[Aliyu36902533]

Nice! I love the functionality and ease having P2P NFT private swap on secret. I also love the fact that it will offer a decentralized and user-driven approach to NFT trading. This proposal is worth considering

[AnewbiZ007]

From a personal level, I love it. A peer to peer swap is something that I have long wanted and thought was low hanging fruit for Secret Network.

It simply makes perfect sense to have this in general but especially in a ecosystem like ours.

Peer to peer trading is a custom as old as time. And the web3 version should be on a network where peer to peer truly has the full meaning and functionality.

I very recently made a transaction that this exact service would have made my life and the life other individuals involved much easier. And I can not believe that there has not been a time most if us have wished for a trustless way to trade peer to peer.

This will become even more paramount once gaming in SCRT and the cosmos takes off.

It can attract new users, support current community needs, and especially once NFT bridging has been tackled it can become a very unique selling point for the network as a whole.

The price seems quite reasonable to me as well.

[mumuse]

Can you explain what your sustainability plan for the future is?

[Wesleyjordan]

Heyy Mumuse,

Sustainability :
We plan to introduce private swaps with no fees beyond gas in order to attract new users and make it another unique selling point of ActiList.

The fee may be adjusted after an introductory period if necessary to cover bare running costs.

The primary source of cost sustainability will be the public swaps, which will be built on top of private swaps.

Because they are public, there will be a verification step before putting a public swap online for everyone to see. Public swaps will be powerful because they are reaching out to more potential buyers in a trustless way and therefore a fee is reasonable.

• The fee for public swaps will be the same as for any other public facing sales on ActiList, and can be adjusted over time should the needs change, IE costs or market conditions.

thanks for reading

[Fyveonit]

this DMCA was about the public picture of redacted rabbit on their website and there were other possibilities to relaunch as long as it was private. So this swap will be private

Because they are public, there will be a verification step before putting a public swap online for everyone to see. Public swaps will be powerful because they are reaching out to more potential buyers in a trustless way and therefore a fee is reasonable.

Will you be restricting Redacted Rabbits to private swaps only?

If so, is it still trustless then?

A trustless system has a mechanism in place where all participants can reach a consensus on a single truth without any one overarching authority

If you’re not restricting public / private will you be waiving the fee for Rabbit trades done via public swap?

In 2000, Congress enacted the Digital Millennium Copyright Act (“DMCA”) in order to balance the rights of copyright holders with the rights of Internet service providers. The DMCA, at its core, protects companies from liability by means of a safe harbor provision that protects companies if they meet the following requirements:

• They must comply with standard technical measures and remove repeat infringers.
• They cannot receive any financial benefit that’s directly attributable to the infringing activity.
• They can’t be aware of the presence of infringing material or know any facts or circumstances that would make infringing material apparent.
• Once they receive notice from copyright owners or their agents, they must quickly act to remove the material.

In general, you can be held liable directly in two ways. Of course, if your website directly infringes upon a copyrighted work (such as posting a copyrighted picture), you’re liable. Alternatively, you can also be on the hook for the infringing actions of another person – even if you were not directly responsible for the action. This is called vicarious liability.

TBH I think this idea is already in violation of at least one of those bullet points. Not to mention Actilist is suggesting HOW they should facilitate the Redacted trades which means they are fully aware of a presence of infringing material. Hell they are in a partnership, named and featuring the logo of said material.

If they take fees that’s another.

Sorry but im not convinced this is a wise venture for SCRT itself

[Wesleyjordan]

Again, its not the same as a marketplace, If person A and person B want to trade they can, Permissionless. This changes if this Rabbit (in this example) has a DMCA and is placed on our markeplace, meaning, we cant remove it from the Secret Network chain, we can only hide it from our marketplace. So that in this case we will do if this happens. Again, as long as this is a 1 to 1 swap it is out of our hands and the responsibility of the person. We make a tool, we dont posses the “asset”.

so say you have 200 euro illegally and you use this to buy SCRT, is SCRT responsible ? or Is the person responsible?

Also again, this swap has nothing to do with Redacted club, only the name partly since it fits and since they placed the idea in our lap. the fee is just a maintance cost thing, but in the beginning there will be no cost at alll.

Same example: if you transfer something on the secret chain and pay gas fee, is this secrets responsbility ? no ofc not.

[Wesleyjordan]

But ofc thanks you for your feedback

[Fyveonit]

so say you have 200 euro illegally and you use this to buy SCRT, is SCRT responsible ? or Is the person responsible?

The DMCA, at its core, protects companies from liability by means of a safe harbor provision that protects companies if they meet the following requirements:

• They can’t be aware of the presence of infringing material or know any facts or circumstances that would make infringing material apparent.

This whole thread, your explanations, the mockup and name Redacti-Swap" implies ActiList is fully aware and facilitating trades via their venue, domain and hardware etc.

[Wesleyjordan]

Again, we dont see any advantage for redacted club, We could have called it ActiList swap, but we found it funny to call it Redacti Swap, Also anyone can suggest a different name if they think they have a better one.

domain will just be on actilist. But i tried to give you examples to tell you what i mean. Redacted club never send me a message saying, hey! we want to use a swap to use this to facilitate our NFT’s since we cant use it on marketplaces. No it just came out of nowhere while having a conversation about their probelm and we thought this was actually a unique and low hanging fruit for the secret network where one of them responded about the name being Redacti swap since it fitted the name.

but i know what you think and thanks for the feedback.

[Fyveonit]

The proposal says partnership

A partnership in business is a formal agreement made by two or more parties to jointly manage and operate a company .

[Wesleyjordan]

yes, since one of them asked to help (pedro) and thats why it parlty is a partnership with them since we thought they gave us this idea and they supported and helped us to set this up. but you are talking about the Redacted rabbits and that this is the reason why we built this.