wSCRT: Wrapping SCRT on ETH & improving access!

Hello everyone! Very exciting past week :slight_smile:

Following up on the successful launch of the Secret Ethereum Bridge and the bridge mining campaign (currently sitting at above $15M TVL near the end of week one of six), this is a good opportunity to introduce a new concept that members of the Secret Network community are currently developing: wSCRT. wSCRT is a wrapped version of SCRT living on Ethereum as an ERC-20 token. Yes, the rumors are true :stuck_out_tongue:

The plan is to switch the bridge from a uni-directional solution (Ethereum → Secret) to a bi-directional bridge (Secret → Ethereum), which would allow us to bridge assets from Secret Network to Ethereum. As our cross-chain, Secret DeFi ecosystem grows, this is a natural extension. By extending this bridge in this way, we can easily bring SCRT itself to Ethereum!

The importance of having a native version of SCRT on Ethereum cannot be overstated. Ethereum is still the largest developer and user ecosystem in Web3, especially when it comes to DeFi and liquidity. As such, once wSCRT is live on Ethereum, the goal would be to ensure it has sufficient liquidity in Uniswap so that it can be easily obtained and utilized both in Secret Network (to interact with applications or stake) and in Ethereum. This will greatly help with onboarding new users and developers into our ecosystem.

To achieve this, the plan would be to allow Uniswap liquidity providers that provide liquidity to wSCRT pools (e.g., wSCRT/ETH and wSCRT/USDT) to earn outsized returns on their liquidity. With the bridge and mining infrastructure in place, this becomes trivial – LPs will be able to take their wSCRT LP tokens to Secret Network using the bridge, and then use the same Earn functionality to earn rewards. Given how valuable this is, the plan would be to provide significant rewards on the bridge to these tokens directly.

I am very excited to share this on the forum for further feedback, and we will likely follow up with a complete blog post in the near future. Please reply here if you’d be interested in interacting with wSCRT and supporting this initiative.

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Yes, very much needed!!

Is Enigma leading the contract development on Ethereum, and then bridge the Secret Network to Ethereum?

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I love it.

Very much needed.

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So there will also be a LP token as well? Is this needed to incentivize LP because staking roi is so high there’s no reason to do LP?

LP token is on Uniswap side. Any Uniswap pool has its own LP token - nothing new here. But the idea is that if you’re an LP for wSCRT on Uniswap, you can earn SCRT on your Uniswap LP tokens (and then stake that SCRT).

This should help in bootstrapping liquidity on Uniswap.

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Great proposal, we need it!!
Just one question, how long do you expect this impletion requies to start, like 1 month or 3 months or more??

And this needs to wait Uni side approval?? Whats the process to proceed, if I can ask.

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I’m in. Would provide a way for many to get involved in the ecosystem.

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Sounds promising! I would also consider liquidity pools on Bancor. They enable one-sided liquitiy providing without the risk of permanent loss, which I really like!

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I’m certainly not against wSCRT. I just want to mention something that should be considered when deciding.

If we think the AMM will be done by the time the SCRT->wSCRT bridge would be done, we could instead change the current bridge so that users have the option to convert an input amount of ETH/ERC20 to SCRT when they go across the bridge. The bridge can do this by executing the exchange with the AMM for sSCRT, do an sSCRT redeem op, and send the remaining sETH/sERC20 along with the SCRT obtained from the conversion to the secret address.

So people would have the SCRT for gas that they need to interact with the network from the start, and have the option to convert all of their ETH/ERC20 to SCRT if they are just looking to obtain SCRT.

One benefit of this is that all the wSCRT volume that will go to uniswap will go to the AMM instead. This also gives the network a higher usage metric in general, which could help encourage more projects to develop on the network.

I don’t know how people want to weigh driving more AMM/network usage vs having uniswap availability, but it’s worth considering.

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I think this is a great point. However, I think it’s important to make SCRT available where the liquidity and the main user demand are concentrated. This will allow:

  • more people to access SCRT -> there’s been less than 1,000 unique address interactions with the bridge vs. the # of wallets interacting with UNI is much higher
  • this will create arb. opportunities and help us keep the prices on the AMM right (you can also do this on binance, but more avenues better access)
  • hopefully we are able to create secretAMM volume because it’s cheaper and front-running resistant and not designate it as a (monopolistic) DEX to access SCRT

MIR and Terra UST are both on UNI and Terrachain. It seems like this model is working:

All this said, I think the point you raise is very valid.

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Liquidity mining brings attention

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Nice! Those numbers definitely put my mind at ease

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This is awesome news !!! Looking forward to it. What´s the ETA guys ?

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I would love to help contribute to this effort. Please keep me posted on any opportunities!

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I would definitely interact with wSCRT as well as support the initiative!

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