Proposal: Add WSCRT as a collateral asset on CREAM Ethereum

Summary :

Proposal by Secret Network community member SCRTisland

This proposal would add WSCRT (Wrapped Secret) as a collateral asset on CREAM Ethereum.

Motivation :

Wrapped Secret (WSCRT) allows ethereum users to bridge between the world of ERC20 tokens into the privacy-preserving Secret Network tokens and back at a 1:1 rate. This allows bi-directional flow of many assets to take advantage of Secret Network’s privacy tokens, including adding CREAM as a secret version to our network as secretCREAM.

Background:

Secret Network is the first blockchain with privacy-preserving smart contracts. That means applications built on Secret can utilize encrypted data without revealing it to anyone, even the nodes in the network. For the first time, Secret Network allows developers to build powerful, permissionless, privacy-preserving applications - Secret Apps.

Secret is the native coin of the Secret Network, a decentralized network for private / secure computation. Nodes on the network (known as secret nodes) can perform generalizable computations over encrypted data, which allows smart contracts (known as secret contracts) to use private and sensitive data as inputs. WSCRT is the wrapped version of SCRT which allows a 1:1 bridge from SCRT to WSCRT.

All assets bridged to the Secret Network are minted using SNIP-20 (ERC-20 like contract based token issuance) standard. All SNIP-20s are privacy tokens as secret contracts are full encrypted (input, state, output). These secretTokens can be swapped on SecretSwap with front-running and miner-extractable value (MEV) resistance. This is again possible given the encrypted nature of SNIP-20 tokens.

Useful Links :

Benefits for CREAM:

First mover advantage - no competition on SCRT borrowing / lending

  1. Yield opportunities for CREAM community through borrowing SCRT: CREAM users can participate in SCRT related yield opportunities (SCRT staking), SushiSwap Onsen without acquiring SCRT.
  2. Access to SCRT community through SCRT lending: CREAM will become the first platform to offer borrowing and lending of SCRT. Secret Network community is extremely strong, vocal and eager to support related projects. This listing would bring a strong influx of new users, who would use SCRT as collateral to participate in ETH DeFi.
  3. TVL potential: the total economic value available in SecretNetwork is approximately $600mn
  4. Potential to add aToken to the Secret Bridge to create wrapped aTokens with privacy. aTokens can be added to the Secret Network bridge if needed by the CREAM community)

Benefits for Secret Network Community:

  1. Ability to borrow / lend WSCRT and participate in leveraged ETH DeFi.
  2. Awareness gain among Ethereum DeFi users for the front-running resistant DeFi ecosystem Secret Network is building.

Risk Mitigation:

Secret Network has been live on mainnet for more than 1 year. SecretTokens have been tested thoroughly in production since October 2020. There is ~$80mn worth of Secret Tokens minted, which was used by +6,000 unique users with more than 50K computations. Secret Network Ethereum bridge has been live since December 2020, used by 2,200 unique users. Currently the bridge provides privacy to $75mn worth of Ethereum assets.

SCRT metrics

Days > 365

Transactions >200,000

Holders > 13500

Market Cap ~ $210mn

Volume ~ $7mn

For

Add WSCRT as a collateral asset on CREAM Ethereum.

Against

Do not add WSCRT as a collateral asset on CREAM Ethereum.

6 Likes

We would also like to provide privacy to CREAM holders! We add can CREAM to the Secret Network - Ethereum bridge. For:

a) Transactional privacy: When we mint assets on our network, they are minted as privacy tokens. This allows CREAM to be used privately on Secret Network or moved to a fresh address on Ethereum to provide transactional privacy. We also have an AMM where CREAM can be traded against these assets. Current TVL ~$65mn

b) SCRT yield: We provide yield to pools over $250K TVL on the bridge. This is going to go on for another 5 weeks. Risk-free rates right now are ~20% for ERC20s.

2 Likes

The Secret Network has been making a strong impact with its unique privacy preservation feature.

Adding WSCRT as a collateral asset on CREAM Ethereum could be an added advantage on both SCRT and CREAM as well as ETH because privacy preservation could be the next big thing in blockchain technology. The Secret Network is ahead in this field.

I support the motion 100%

2 Likes

I’ve been since late 2020 looking for ETH-substitutes, staying a bit away from Uniswap/sushiswap and ETH because of the outreageous high fees and wound up meeting some cool AMMs.

I’m upvoting this because I bought Enigma some years ago because I firmly believe in privacy and think Secret (SCRT) would make a great adittion to CREAM. They’re bridging ETH and SNIP tokens, with future coming BSC bridges too.

FutureSwap is working pretty well running with low fees.It surely will help bridge assets to Cream ETH with as much privacy, permissionless contracts, as crypto users could ask.
I think the 2 projects (CREAM and SCRT) synergyze greatly.

But dont take it from me alone, DYOR and you could even get an airdrop for Secrets governance token (SEFI) if you go deep enought into the rabbit hole.

2 Likes

Secret Network is a decentralized network that solves the problem of privacy on the blockchain. It allows for programmable privacy, which allows applications to use encrypted data (as inputs, outputs or states) in their smart contracts. This enables whole new use cases for blockchain technology, in which data protection is extremely important. In DeFi, for example, programmable privacy can solve the problem of front-running. Credit scores can be kept private, among many other applications. For me, it is one of the most important projects in the space.

The motivation and advantages of this proposal for both communities are clear and very well explained, but I also see that could lead to further collaboration between both teams. Adding wSCRT (the wrapped ERC20 version of SCRT token) as collateral asset in CREAM (and enabling secretCREAM on the Secret Network) could only be the beginning.

2 Likes

I think this integration would be great for both projekts!
It will bring both communities awareness of the other project.
Especially cream users that earn a lot of cream rewards could benefit from Secret network and especially secretswap. If secretcream pairs are added to secret swap you can switch to a stable coin or any other supported coin secretly without anyone knowing.
On the other hand the secret community will explore the yield and lending options on creamfinance.
I support it!

2 Likes

Having access to WSCRT on CREAM would be a great opportunity to introduce the possibility of borrowing / lending to the Secret Network users. SCRT is used to pay all fees on the Secret Network and acts as it’s governance token.

The most interesting aspect of this project is ‘programmable privacy’, in short this means that you can create smart contracts that can be completely private (input, internal state, and output). This is possible because everything runs inside a Trusted Execution Environment, where everything is hidden, even from the validators hosting the node.

sTokens, the Secret Network version of ERC-20s, are by default private and account balances can only be viewed when you have set a viewing key. This enables you to share certain information with others, if you would wish to do so, without compromising control over your wallet while retaining general privacy. This is essential to a lot of different use cases on blockchains which require some form of privacy.

Regarding sustainability, the network is PoS so the electricity requirements are significantly lower than PoW. What keeps this project running though is SCRT’s community. They come together several times a week in public meetings that can be attended by anyone. In these meetings developers and enthusiasts alike discuss both short and long term goals, and ways to achieve them. It isn’t uncommon to see 40 to 50 attendees in the less technical meetings.

In the near future there are some interesting things coming up: a bridge to BSC, the launch of SEFI (Governance token of SecretSwap, a front-running resistant AMM running on the Secret Network), and the creation of secret NFTs. Therefore, it would be a great time to add WSCRT and get a first mover advantage.

2 Likes

Privacy will be a big trend in the future, An example of this is the rise in OTC market operations that many large companies use, nobody wants all their movements on the Blockchain to be known, well Secret Network solves this problem, allowing programming of smart contracts with encrypted data, with its Secret Token it combines the programmability of the ERC20 with the privacy of Zcash or Monero. What are the advantages of interacting with Secret Network:

  • High commissions for using ERC-20 token: This is something that I particularly liked a lot, especially in the last time, using its bridge you can pass your erc-20 to the Snip-20 standard, with which to make the commissions for using Their platform equates to pennies on the dollar which helps retailers like me a lot.
  • One of the trends that are on the rise are DEFI projects: Secret network has already announced its native governance token $ SEFI for its future secret DEFI ecosystem.
  • Big costs of using AMM like Uniswap? Secret network has already launched SecretSwap, where you can interact with all the most popular secret tokens such as sLink, sEth, sOcean, among many others, making swaps, even providing liquidity. It is also something that I have taken advantage of lately to be a candidate for their $ GOV Governance Token Airdrop this March.
  • Today we can all see the NFT boom for which a new secret grant has been awarded to develop a non-fungible token (NFT) standard for the Secret Network, which unlocks new critical and unique use cases for NFT. with programmable privacy.

All these benefits have been realized by other blockchains such as Binance Smart chain, Ethereum, and soon IBC, Polkadot and more.

But as always and most importantly…DYOR!

2 Likes

I’d love to see this happen. I’ve been following SCRT for a while now and think it has a ton of potential. Other comments on this post have already explained Secret Network pretty well, but to put it into a simple analogy, SCRT is to ETH as XMR is to BTC. It’s still early days for the SCRT ecosystem, but we’re trying to build relationships with other communities and make more blockchain developers aware of the potential. A partnership with CREAM would give more exposure to both communities.

Would like to add in my own simple words what Secret networks bridge can do for other blockchains.
On https://bridge.scrt.network/earn we have a DEX that allows you to trade privacy token versions of
other blockchains. We could add a private token version for CREAM. It looks like this:
ETH has a privacy token: sETH (secretETH)
SCRT has a privacy token: sSCRT (secretSCRT)
We can add a sCREAM to our DEX. This allows you to trade a sCREAM but nobody can see your balance or the coin you choose to swap with. (Unless you share a viewing key.)

I can point out several benefits below to support this integration:

1.Both Cream and Secret Network can attract more users after this partnership

2.Secret Network is building its ecosystems such as AMM, Bridge Mining, and Secret Swap etc… There is a lack of a lending platform like Cream Finance. Being a first-mover is never a bad idea to make huge gains for Cream in this unexplored market.

Would love to see both communities support and grow together :handshake: :rocket:

It would be great having the option to deposit SCRT as collateral for borrowing :slightly_smiling_face: :pray: