Secret Feature: Shade Protocol & the Silk Stablecoin

Secret Network
October 26, 2021

Greetings Secret community!

While DeFi (Decentralized Finance) has been innovating at breakneck speed, there’s a core component that has been ignored: privacy. As a result:

  • Retail investors and institutions have leveraged positions publicly visible on MakerDAO on Ethereum, allowing people to manipulate open market prices to liquidate these vulnerable positions
  • DeFi DEX trades are front-run by armies of bots that prey on everyday users, costing users collectively over a billion dollars over the course of a year
  • NFT minting auctions are gamed due to the transparency of auction amounts and timing on a contract level
  • The movement of financial assets is tracked via “whale trackers”, hurting large investors’ ability to freely interact with open markets and pushing them to OTC markets

The solution? Enter Shade Protocol: an array of apps on Secret Network that bring privacy to DeFi.

Read the Shade Protocol Whitepaper.

What is Shade Protocol?

Shade Protocol is an array of connected privacy-preserving dApps built on Secret Network. This series of applications will fundamentally iterate on DeFi by not only innovating on privacy but also the underlying DeFi mechanics.

What is the Silk stablecoin?

The first announced application on Shade Protocol is Silk. Silk is Secret Network’s first natively generated stablecoin, built with secret contracts.

Built on Secret Network, and made possible via the SNIP-20 private and fungible token standard, Silk maintains transactional privacy for all token holders of Silk. Key to Silk is that it functions as a medium of exchange, is a store of value, is a unit of account, and is a standard of deferred payment—all of which give Silk the four key fundamental properties of money.

Features of Silk include:

  • Stable
  • Private
  • Algorithmic
  • Treasury backed
  • Staking backed
  • Index currency
  • Auditable

Silk is algorithmically stabilized by Shade—the governance token of both Silk and Shade Protocol. Silk replaces the payments value chain (credit card networks, banks, payment gateways) with a single application-layer protocol. Shade Protocol and Silk are credibly neutral, distributed, and have transactional privacy by default.

Important for compliance and transparency is that Silk and Shade transactions can be decrypted with a viewing key or viewing permit unique to the address owner of the Silk, which empowers users to be transparent by choice. Additionally, users have the option to share data with trusted necessary entities that need an audit trail of transactions.

Shade Protocol Dev Update #1
The following is the first of various Shade Protocol Dev updates. Shade Protocol consists of 10+ core contributors from all over the world from multiple organizations and backgrounds. The heart of…

Silk maintains its peg with a combination of open-market algorithmic arbitrage, as well as both staking and treasury participation in peg arbitrage. Additionally, Shade Protocol has no block-based inflation, and is pegged to a basket of global currencies and commodities. Finally, Silk has privacy by default, empowering Silk to be a futuristic settlement option for large institutional and retail investors.

SILK – Private Algorithmic Stable Coin · Issue #22 · SecretFoundation/Grants
Silk Project Description Secure Secrets will create Silk, the world’s first native privacy-preserving stablecoin built on the Secret Network. Launching in tan…

Why own the Silk and Shade token?

The following are reasons to own Silk and Shade:

  • Silk is an excellent stablecoin for storing value during volatile price movements on the open market
  • Staking rewards and liquidity-providing incentives for the Silk and Shade token will be lucrative
  • Arbitrage opportunities using Silk and Shade
  • Fast and cheap

Silk and Shade are aiming to become one of the most liquid pairs to exist on Secret Network, so don’t miss out on this incredible opportunity to be an early adopter!

Shade Protocol – Home Page
Shade Protocol – The Super-App For Private DeFi. Shade Protocol is the Private DeFi suite for the Cosmos Ecosystem

Shade Airdrop – Take action!

It has been officially confirmed that there will be a Shade airdrop for SCRT, LUNA, and ATOM stakers, so be sure to get staking as soon as possible. Additionally, information on tokenomic distribution and snapshots will be released in the following weeks.

Get ready and start staking your SCRT today!

  • Snapshots will occur between November 7th 5:00 pm. (UTC +0) through December 13th at 5:00 pm (UTC +0)
  • 36 days of staking — this lengthy period of time from early November to mid-December is required to reward/identify devoted participants
  • Users are responsible for staking during the entire duration of the November 7th — December 13th range.
  • Total supply of the Shade token is 10,000,000
  • Secret ($SCRT), Atom ($ATOM), Luna ($LUNA) stakers are eligible for receiving the Shade airdrop
  • There will be no further communities added to the set
  • Target of ~1,450,000 Shade to be airdropped initially
  • 36% of airdrop to Secret Network
  • 32% of airdrop to Atom
  • 32% of airdrop to Luna
  • No minimum required staking amount on any network
  • You can realize multiple airdrop rewards by staking in multiple networks
  • ~1.5% of the Shade token supply will be devoted to an incentivized testnet / community participation in advance of Shade Protocol launch
  • DEX LP staking is not included in the airdrop on any network
  • Read the blog to learn how to earn a bonus airdrop reward

Shade Protocol Snapshot Details
Greetings Shade Protocol community! It has been one month since Shade Protocol on Secret Network was announced to the world. Since then, we have seen exponential growth of the community as excitement…

Shade Community

The Shade Protocol community invites you to join the telegram and follow the Shade Protocol to stay up to date with the roadmap and announcements!

Shade Protocol Twitter:

Shade Protocol Telegram:

Who knows what alpha will be revealed next? 🤫

Onwards & Upwards!

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