Economy

SecretSwap Secret Network’s Answer to DeFi Privacy

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Secret Network, a protocol focusing on privacy for decentralized finance (DeFi), launched SecretSwap, a resilient, cross-chain decentralized exchange that runs from the front. Now live on the Hidden Net mainnet.

SecretSwap uses SNIP-20 secret token standard and Hidden Ethereum bridge.

“SecretSwap, the first front operated resistant cross chain [automated market maker]. “SecretSwap’s (based on the Hidden Network) architecture provides SecretSwap usability benefits, protects users from malicious bot activity, increases availability of assets, and keeps fees much lower than Ethereum,” said Tor Bair, executive director and president of the Secret Foundation. direct message.

DeFi privacy

According to Bair, SecretSwap works similarly to other AMMs such as Uniswap or SushiSwap. However, because it is based on “stealth” smart contracts that protect privacy, users are protected against front-running bots and other malicious activity.

A front run is an action to take a action first in the execution queue just before a known future action occurs. Bots running such front-running operations by paying slightly higher gas charges have become a problem for DeFi, and multiple projects are developing privacy solutions to address this issue.

“Below the surface of every transaction going to the blockchain, there are fierce battles for every profit,” said Alex Manuskin, a blockchain researcher at ZenGo who looked ahead to run ahead in an earlier interview with CoinDesk.

“If you have encountered an arbitrage opportunity or even noticed an error in some contracts, it will be very difficult to get that value without running a bot yourself to fend off the pre-runners, link up and connect. Paying a miner to hide your gold goose transaction or those who lead the transaction will not notice. complicating it up. “

Secret Network’s private liquidity center is one of the first to be launched on the main network following the launch of the Ethereum bridge. This bridge allows assets to be transferred privately between Ethereum and the Hidden Network and essentially offers interoperability between protocols.

Secret contracts

According to a Secret Network blog post covering SecretSwap’s launch on testnet, SecretSwap’s advantage lies in secret contracts and the SNIP-20 token standard.

Confidential contracts allow the encrypted data to be used undisclosed on a public blockchain or even on the nodes themselves.

“Because the entries of the swap contract are encrypted, no malicious actor or miner can front-run transactions pending in mempool at the expense of honest users,” he writes in the blog post. “Network charges for interacting with SecretSwap are paid in SCRTs (like all other secret contracts).”

AMM supports pools for hidden tokens supported on the Ethereum Bridge as well as those that will be supported in the future.

“We have $ 50 million of Ethereum assets locked in our network as a secret token,” Bair said.

Anonymous NFT auctions?

Earlier this month, the networks launched the Secret Auction web3 application, a crypto auction platform that provides privacy for DeFi by default. The application allows users to create auctions or bid for any SNIP-20 token (Secret Token) with minimal fees and privacy protections throughout the process.

“Offers are completely confidential: Bidders cannot see if there are other offers, and sellers can only know if there are offers, but not how many,” a blog post on the topic.

Also, until the auction is closed, the price information on any bid is unknown to anyone, and the only information revealed after the auction is closed is the winning bid. This was the first time possible in a blockchain application without a trusted third party – another first for the Private Network. “

There’s also a fungible token (NFT) standard in development for the Secret Network, while NFTs are featured in mainstream audiences, as the star of the National Basketball Association, Zion Williamson, recently sold for $ 100,000 and collected an article from ESPN.

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