SecretSwap Update: Cashback on Mainnet, Dev Fund, and More!

Secret Network
June 1, 2021

Hello to the Secret community!

We’re excited to share our latest update for SecretSwap, which has continued to drastically evolve and grow since its launch in March. SecretSwap is the first front-running resistant, cross-chain and privacy-first AMM – secured by Secret Network. Additionally, $SEFI – a native governance token for Secret DeFi and SecretSwap – has now been live for more than 2 months.

Since the initial launch of SecretSwap, developers have been hard at work creating the next big feature for SecretSwap: an incentivized cashback token called $CSHBK that is earned via trading on SecretSwap and which can be burned to receive $SEFI. We’re happy to announce that $CSHBK has been successfully deployed to mainnet, meaning SecretSwap traders now immediately begin earning “cash back” on their swaps!

SecretSwap has an easy to use interface to begin burning your accumulated $CSHBK for $SEFI – so get busy trading today!

Cashback is live at:

In addition to the launch of $CSHBK, the SecretSwap Development Fund (outlined at the launch of $SEFI and SecretSwap) has now begun to accumulate $SEFI. This pool of funds will be controlled by $SEFI governance at the launch of the SecretSwap governance module, which is currently actively under development. The fund can be used for liquidity mining campaigns, marketing, development of additional SecretSwap features, expansion of the Secret Finance ecosystem, and a range of other opportunities!

Currently the development fund is accruing a $SEFI balance at the following Secret address: secret1j8ephume52cjxswjvj5y6pvdshfsdhp3p2cjfs

To query its balance while the UI is being constructed, you can execute the following CLI command:

secretcli q compute query secret1j8ephume52cjxswjvj5y6pvdshfsdhp3p2cjfs '{"balance":{"block":<current_block>}}'

The launch of the $CSHBK token and the beginning of the growth of the SecretSwap Development Fund coincide with (and will hopefully accelerate!) the rapid adoption of SecretSwap – with over $150,000,000 in cumulative volume in the past three months!


How $CSHBK Works

The purpose of the $CSHBK token is to act as a mechanism to incentivize an increase in trading and volume on SecretSwap. The more you trade, the more $CSHBK you earn. The amount of $CSHBK received for trading on SecretSwap is proportional to the volume of the swap.

As an example, say Alice trades 1000 sSCRT for 0.5 sETH on SecretSwap. After executing this trade, Alice might earn 1,000 $CSHBK. If Alice then traded 0.1 sETH for 200 sSCRT, she might only earn 200 $CSHBK as her trade was significantly smaller.

Please note that although Cashback tokens are redeemable for $SEFI, $CSHBK is not pegged 1-1 to $SEFI. That means depending on how much trading is happening, you can be earning more or less $SEFI via Cashback! Let’s take a quick look at how this works:

The Cashback pool accumulates $SEFI in a block-by-block basis. There is a Cashback rate which indicates what portion of the swap fees you are getting back in the form of CSHBK. For example, when the Cashback rate is at 100%, you are practically trading for free assuming that you burn your $CSHBK at that exact moment. Cashback rate is changing every block.

The Cashback rate is essentially the ratio between $SEFI accumulated in the Cashback pool and $CSHBK minted (SEFI / CSHBK). That means that as long as no one else is trading, your Cashback redemption value is increasing, and vice versa: when there is more trading volume than there is $SEFI accumulated, your Cashback redemption value is decreasing.

Currently, approximately 10% of all $SEFI distributions are continuously accumulated at the $CSHBK rewards contract, which can be found at secret1eckd8jyjjz5qvse3t42qnepy4ywg9qj6hlh46s. Based on current allocation rates this is equivalent to approximately 131,000 $SEFI allocated for total $CSHBK rewards in daily issuance. This amount of rewards is subject to change by $SEFI-based voting.

With the launch of Cashback, there has never been a better time to start trading! Looking for even more opportunities? Watch this full-length walkthrough tutorial video to learn how you can become a trader and liquidity provider for SecretSwap and begin earning approximately 50-200% APY!

LPs and $SEFI users earn significant APY.

SecretSwap GitBook

In addition, we’ve got some new resources for SecretSwap users and traders! Recently, the combined efforts of multiple community member efforts has yielded the SecretSwap GitBook which offers in-depth documentation of the SecretSwap protocol, a user guide, and a developer guide. This GitBook walks readers through swapping, liquidity providing, viewing keys, all the way to a SecretSwap FAQ. Check out the GitBook now!

Welcome to SecretSwap

What happens next?

As mentioned above, $CSHBK is now live on mainnet. At this time, anyone will be able to earn $CSHBK by trading on SecretSwap – giving you the ability to burn $CSHBK for $SEFI. The more you trade, the more you earn! The launch of $CSHBK will help bring even more adoption to SecretSwap and Secret DeFi – a universe where applications are front-running resistant and private by design!

Now our attention turns to our upcoming bridges that will connect Secret Network to the rest of the blockchain universe, expanding our current connection to Ethereum. This includes the three bridges that have passed the testnet phase: the Secret Binance Smart Chain Bridge, the Secret Plasm Bridge to Polkadot, and the Secret Monero Bridge. These bridges will bring Secret Network’s programmable privacy to assets from all these different blockchain universes and attract even more liquidity and opportunities to SecretSwap and Secret DeFi!

Oh, and there’s also a number of additional Secret bridges in active development… so stay tuned.

Thanks for reading to the end. We’re excited to finally bring $CSHBK live on mainnet as we work to 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!

Onwards and upwards!

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