Improve Secret DeFi Hub Integration

Secret Contracts and Secret Apps
1

I would like to see an existing ERC-20 token on the Ethereum platform be made available as a Secret Token on the Secret Network. I would then also like to see that token supported on the Secret Ethereum Bridge. How can that be accomplished?

Is that something that would have to go through a governance process?
Is there documentation outlining such a process?

Feedback is appreciated.

BACKGROUND INFO:
To help improve the Secret Defi Hub concept, and to improve efficiencies in cross-chain value transfers, I’d like to propose an integration pattern that would bring the Secret Network together with the pTokens project ( https://ptokens.io/). The pTokens project is attempting to build a decentralized network utilizing TEEs for cross-chain value transfers.

Currently pBTC is an ERC-20 token on the Ethereum platform. I would like to see a secret token representation of pBTC which would be similar to the existing WBTC ( and sWBTC) tokens. As I see it, the benefit of pBTC over WBTC is that pBTC would bypass the KYC/AML constraint associated with WBTC (Individuals can issue pBTC tokens on Ethereum directly from their wallets without having to deal with KYC/AML).

A secret token for pBTC could be created for DeFi use on the Secret Network (SNIP-20 ).

The pBTC/sPBTC tokens could be added to the Secret Ethereum Bridge and traded on Secret Swap.

Then anyone wanting to convert value directly back to a Bitcoin address could convert the sPBTC token to pBTC via the Secret Ethereum Bridge, then use the pTokens DApp to redeem pBTC to Bitcoin bypassing KYC/AML and preserve transaction privacy.

That seems to me a low-hanging-fruit opportunity now. In the future a more direct integration of the Secret Network <-> pTokens could be done using the Secret Network itself without having to be dependent on Ethereum and avoiding high transaction costs.

pTokens Total Value Locked (USD) currently: $ 22,904,243.18

I have been attempting to move value off the EOS platform to the Secret Network. I’m using pETH token on EOS and ptokens DApp to do it. Unfortunately Ethereum gas fees makes this a painful process.

This would open up a more private and lower cost path for individuals to move value from Bitcoin to Secret DeFi.

Any feedback would be appreciated.

2

pTokens can be added to the bridge. We currently prioritize bridge additions based on TVL potential.

Why don’t we just have pBTC on secret network w/o the bridge? IS that how you do things with EOS?

3

Currently ptokens support Ethereum and EOS (not the Secret Network). I’ll describe why the bridge is important:

If I have value on the Bitcoin blockchain, I can use the ptokens Dapp to issue pBTC tokens on any ptokens supported platform, such as Ethereum or EOS. Let’s consider Ethereum for this discussion. I use the potkens Dapp (https://dapp.ptokens.io/) to issue pBTC on Ethereum by specifying the amount of BTC and my Ethereum address. Once complete, I have the specified amount of pBTC in my Ethereum wallet. This ability to directly issue a 1:1 Bitcoin pegged token is not possible with WBTC (requires a merchant and KYC).

So I have transferred BTC value from the Bitcoin blockchain to Ethereum. Now I want to transfer that value to the Secret Network as a secret token. I don’t believe that is possible without the bridge.

As I see it, the only way I can move the value in pBTC to a secret token on the Secret Network is:

  1. Get support for converting pBTC<->sPBTC on the Secret Ethereum Bridge.

  2. Get ptokens project to support pBTC (sPBTC) on the Secret Network.

I’m thinking option #2 would be harder to accomplish. I see option #1 as being simple, but it requires supporting pBTC<->sPBTC on the Secret Ethereum bridge.

I can trade pBTC for ETH (or any other token supported on the Secret Ethereum Bridge) then move that value to the Secret Network, however, if I want to hold/trade value pegged to BTC on the Secret Network, its costly to do that because I have to convert assets multiple times.

Does that make sense?

ptokens Total Value Locked (USD): $ 25,932,464.90