Hello to the community!
Today we are thrilled to share that the Secret Monero Bridge has launched on testnet. This is an exciting new development in the crypto privacy space that combines the strength of the Monero privacy coin with the wide utility of Secret Network’s programmable privacy, specifically privacy-first decentralized finance (DeFi) ecosystem.
You can view and interact with Secret Monero bridge on testnet: https://ipfs.io/ipfs/Qmdy9Ups2Ru3ycKAiCre9zomRbFqgts1eAcvG43E2CcQTt/
You can view and interact with sXMR and Secret DeFi on SecretSwap testnet: https://cashback.testnet.enigma.co/swap#Swap
Video tutorial of using sXMR on SecretSwap: https://ipfs.io/ipfs/QmWWE4tUr8NhBhTV6dtnLeRC5XkTs4Tq8sCCfKAQfKbWQt
Full walkthrough tutorial from SCRTIsland: https://github.com/scrtisland/secretxmr/blob/main/README.md
What is the Secret Monero Bridge?
Secret Bridges bring programmable privacy to assets from other ecosystems, allowing them to enter Secret Network as privacy-preserving "Secret Tokens." Secret Tokens are a powerful concept - they're programmable like ERC-20s and usable in applications, but they remain private by default like Monero and similar coins. Interactions with Secret Token contracts are encrypted, viewable only to address owners or holders of their viewing key.
The launch of the Secret Monero Bridge will allow Monero to flow to and from Secret Network. Since Monero is already a privacy coin, the biggest immediate benefit for users with this bridge is that they can gain accessibility to Secret DeFi via privacy-preserving decentralized finance apps built on the Secret Network. This includes SecretSwap, the first front-running resistant, cross-chain and privacy-first AMM.
This is the fourth Secret Bridge to pass the testnet stage, joining the Secret Ethereum Bridge (already live on mainnet and securing over $100M in Ethereum assets), the Secret Binance Smart Chain Bridge, and Secret Plasm Bridge (facilitates a connection between Polkadot and Cosmos ecosystems). As more bridges get added to mainnet, Secret DeFi users will have a wider array of Secret Tokens to interact with, making Secret Network the privacy hub of the blockchain universe.
Access to Secret DeFi: Private Decentralized Finance
Long-time Monero community members
maxkoda and his team acknowledged that the Monero community has been patiently waiting for access to a secure privacy-first DeFi ecosystem. At the present time, no DeFi protocol accepts Monero. Monero holders are not able to directly participate in DeFi, unless they first exchange Monero for some other cryptocurrency like Bitcoin or Ethereum on centralized exchanges and then make transfers to public and transparent DeFi platforms. This a complex and expensive process and Monero users are forced to sacrifice their financial privacy doing so.
By developing the cross-chain Secret Monero Bridge, the team hopes to address this gap for the Monero community and enable users to participate in Secret DeFi while preserving their financial privacy.
Yield opportunities across Secret DeFi that will be made accessible to Monero community:
- Cashback for swapping and exchanging with other Secret Tokens
- Provide liquidity for Secret Token/SCRT Pairs (currently ~200% APY)
- Stake SEFI, SecretSwap governance Secret Token (currently ~150% APY)
How does the Secret Monero Bridge work?
Using the Secret Monero Bridge Decentralized Application (Dapp) which resides in IPFS, Monero holders can transfer their XMR to the Secret Monero Bridge which securely locks the XMR in a multi-signature Monero wallet and issues sXMR tokens that can be used on the Secret Network. A collection of decentralized multi-signature consensus nodes operating inside the I2P network, will be signers on the multi-signature wallet and sXMR and XMR will be pegged 1:1. The consensus nodes control the transfer of XMR from the Secret Monero Bridge wallet to user wallets for withdrawals and control the minting and burning of sXMR tokens using Secret Network's multi-signature technology.
Users can then utilize these sXMR tokens in Secret DeFi, where they can trade sXMR for other Secret Tokens, stake Secret Tokens to earn passive revenue, provide liquidity for Secret Token/SCRT pairs to earn yield farming rewards, and eventually even lend Secret Tokens to grow value. Once they are ready to leave the ecosystem, users can convert sXMR back into XMR using the Secret Monero Bridge and cash out privately.
Efforts have been taken to assure that the Secret Monero Bridge monetary supply is transparent and visible for external audits. The code is open source and the sXMR secret contract will support queries as to the number of sXMR tokens in circulation.
What happens next?
As mentioned above, the bridge is now on testnet. At this time, anyone will be able to test creating Secret Token versions of Monero assets, exchange and yield farm with these tokens, and burn them to transfer back to Monero. For users who are already familiar with DeFi and liquidity mining, this is an attractive new way to get competitive yield on Monero assets while also gaining exposure to the groundbreaking world of Secret DeFi - a universe where applications are front-running resistant and private by design!
In order to learn more about or contribute to the Secret Network ecosystem:
Follow us on Twitter (https://twitter.com/secretnetwork)
Join the Secret Discord (https://chat.scrt.network)
Join the community Telegram (https://t.me/scrtcommunity)
Secret Network is community-governed and directly supported by dozens of independent companies, node operators, and developers around the world. There are many ways to contribute to the growth of our network and ecosystem, including by becoming part of a Secret Committee (or starting your own!)
Thanks for reading to the end! We're excited to finally bring our privacy solutions to the Monero ecosystem and help grow a more secure, more accessible, and more usable global open financial ecosystem. As we continue to bring the power of programmable privacy to more ecosystems and assets, we hope you will join us in our mission of empowering and protecting millions of users around the world.