Announcement

Secret DeFi Update: Genesis Distribution Date for SEFI + SecretSwap Improvements!

Secret Network

March 17, 2021

Hello to the community!

We are excited for the upcoming genesis distribution of $SEFI, native governance token for Secret DeFi. Today we are announcing the expected SEFI genesis date: March 31st, 2021.

Initially SEFI will focus on governance of SecretSwap, the first cross-chain, front-running resistant decentralized exchange, which launched on mainnet in February. SecretSwap makes use of the SNIP-20 standard and Secret Ethereum bridge, and it will make use of bridges to other ecosystems (including the Secret Binance Smart Chain bridge).

This blog will recap the difference between SCRT and SEFI, explain how SEFI genesis distribution and ongoing rewards will function, and provide updates on current SecretSwap adoption, ongoing improvements, and upcoming features!

For even more information on Secret DeFi and SEFI tokenomics, please reference our recent announcement of the SEFI token.

Meanwhile, you can start using SecretSwap here: https://secretswap.net

Using SecretSwap is simple – and it’s always improving.

About SCRT and SEFI

Secret Network is a unique layer 1 blockchain that features “secret” smart contracts – privacy-preserving smart contracts that allow decentralized applications to run with encrypted inputs, outputs, and state. SCRT is the native coin of Secret Network, used for all network fees, staking, and on-chain governance of the protocol. (Note that this is governance of Secret Network itself, not of applications built on the network.) You can think of the relationship between SCRT and Secret Network as similar to the relationship between ETH and Ethereum.

Similar to how Ethereum has ERC-20 tokens (a fungible token standard for Ethereum), Secret Network has SNIP-20 tokens, or Secret Tokens, based on a fungible token standard for Secret Network. That means that secret tokens, just like ERC-20 tokens, can have many different types of functionality and represent many different types of assets. For example, currently there are $85M worth of Ethereum assets wrapped on Secret Network as secret tokens, which can be viewed on the Secret Ethereum Bridge. Note that SCRT itself is not a privacy coin (its use is transparent on-chain) but secret tokens are privacy-preserving.

That brings us to SEFI, which is a secret token on Secret Network that is also bridged to Ethereum. You can think of SEFI as being similar to UNI for Uniswap or SUSHI for SushiSwap. There will be many SNIP-20 tokens deployed on Secret Network as well as other secret token standards, such as Secret NFTs (having private metadata and private ownership), which are currently being developed.

The SEFI token allows users to govern parts of the Secret DeFi ecosystem in a decentralized fashion. Some of the aspects that the community can govern include:

Spending the SEFI development pool
Determining pools eligible for user rewards, including changing their respective weights
Joining other communities, for example, by enabling joint liquidity mining campaigns like Sushiswap Onsen
SecretSwap fees and use of fees
Adding other products into Secret Finance that receive and utilize SEFI

SEFI Genesis and Rewards

The genesis distribution of SEFI is designed to ensure a fair and broad distribution of tokens to existing SecretSwap users, as well as other prominent communities across Secret Network and Ethereum.

As part of a fair genesis launch, portions of this distribution will be based on historical activity and current snapshots that are curated by members of the Secret community. To prevent this from being gamed, these snapshots will be held at unannounced times between the publication of this blog post and SEFI genesis on March 31, 2021.

10% of SEFI will be distributed at genesis. The remaining 90% of tokens would be distributed over four years, with rewards halving year over year. These parameters (e.g. weighting of rewards between LP Providers and Traders) could change in the future through governance.

Genesis SEFI distribution will be made to certain Ethereum DeFi communities that are supported on the Secret Ethereum Bridge and existing stakeholders on Secret Network, including SCRT stakers, SecretSwap LPs pre-SEFI genesis, and Secret Network – Ethereum bridge users.

After genesis, SEFI will be distributed as rewards for providing liquidity and transaction volume on SecretSwap, as well as for providing liquidity to WSCRT and SEFI pools on other DEXes of note on other chains (e.g., Uniswap, Sushi). A portion of SEFI supply is also reserved for users who support Secret DeFi and Secret Network through staking, and another portion is reserved for a Secret DeFi development pool.

More complete information on SEFI genesis distribution and ongoing rewards can be found in this full blog post.

SecretSwap: New Features and Early Adoption!

SecretSwap first launched on mainnet in February 2021, a “soft launch” ahead of SEFI genesis that brought initial adoption to the AMM. While the SEFI token has been in development, a number of improvements and expansions were being made to SecretSwap!

First, we’ve made a substantial number of performance and UX/UI improvements, some of which have already been deployed on mainnet (and others live on testnet, expected to be deployed shortly). These early launch periods are critical for working alongside users to identify any bugs and improve usability. Optimizations were made reducing the amount of requests that are generated per-user while increasing the amount of computing power on the back-end, summing up to a 10x increase in the amount of concurrent users we can support. We want to give a shoutout to Figment & the Datahub team for supporting and helping us scale!

Second, we’ve been expanding the number of bridges bringing assets into the Secret DeFi ecosystem! Previously we announced the ongoing integration of Binance Smart Chain, bringing programmable privacy to BSC. With the Secret BSC Bridge, Binance Smart Chain users would be able to take their BSC-based assets (BNB and BEP-20 tokens) and mint equivalent privacy tokens on Secret Network. Here’s an early look at the UI for SecretSwap users!

Secret Network is becoming a data privacy and cross-chain liquidity hub.

Third, critical features continue to be developed and added, including a Swap Router! By allowing orders to be routed across the SecretSwap AMM, users receive better prices for swaps and drive more fees to LPs. Swap routing is live now on testnet and will be integrated to mainnet in the near future.

sETH -> sSCRT -> SCRT – just one possible routing for swaps!

Liquidity has been improving steadily across SecretSwap during this bootstrap period for Secret DeFi, and we anticipate the launch of SEFI (along with the launch of more improvements, bridges, and products) to drive even more liquidity and volume as more assets are bridged into Secret DeFi – and as more opportunities are created to utilize them!

Remember that SecretSwap LPs receive a large portion of both the genesis distribution of SEFI as well as ongoing rewards…

Liquidity is rising across a number of SecretSwap pools

Now What?

If you’re excited about the launch of SEFI and would like to start staking SCRT, providing liquidity on SecretSwap, or using our bridges and applications, come get support from the Secret community in the Secret Chat (Discord).

There are also many community guides and video walkthroughs available to help you get started on your Secret journey, a few of which are linked below!

How to use the Secret Ethereum Bridge [WhisperNode]: