Secret Monero Bridge

[maxkoda-cpu]

Project Description

A value transfer bridge connecting the Monero blockchain and the Secret Network

Secret Monero Bridge v0.0.1 preview video: https://ipfs.io/ipfs/QmeGYvXnfA8iPMS2AC17TYu1zuVbVqJjnr2MYZ5mJpD1wc
Secret Monero Bridge Dapp (v0.0.1): https://ipfs.io/ipfs/Qmdy9Ups2Ru3ycKAiCre9zomRbFqgts1eAcvG43E2CcQTt/

Secret Monero Bridge github repository: https://github.com/maxkoda-cpu/Secret-Monero-Bridge

Problem / Solution

Growing liquidity on the Secret Network to enable the success of Secret DeFi is essential. Currently value held on the Monero blockchain (approx $7.5 Billion) can not directly participate in DeFi. Our Secret Monero Bridge would enable the transfer of value from the Monero blockchain onto the Secret Network (in the form of sXMR), that could directly participate in Secret DeFi. Monero transferred to the Secret Monero Bridge is locked in a multi-signature wallet. Our bridge would also enable value to be moved back onto the Monero blockchain when desired, unlocking then transferring the monero to the user’s wallet.

We expect the Secret Monero Bridge to provide increased liquidity on the Secret Network and Secret DeFi. A win/win for both communities.

Detailed product description

We have deployed the Secret Monero Bridge v0.0.1 to the testnet (holodeck 2 and the Monero testnet).

The scope for this grant proposal is to move the Secret Monero Bridge v0.0.1 to the mainnet and release that deployment as the Secret Monero Bridge v0.0.2.

This following covers what we have already developed:

We have created a secret Monero (sXMR) token which is pegged 1:1 with Monero (XMR)

The Secret Monero Bridge's Monero wallet is a multi-signature wallet and transfers into that wallet will be from individual Monero holders. Transfers out of that wallet (sXMR->XMR) is controlled through a Multi-Signature Consensus Facility to properly secure and provide a decentralized consensus approach to transferring value out of that wallet. The Secret Monero Bridge will charge nominal bridge fees (0.0032 sXMR in release 0.0.1). Bridge fees will be managed (set/revised) via a governance mechanism. Collected fees will be managed via governance.

The Multi-Signature Concensus Facility consists of a set of decentralized nodes that control the minting of sXMR tokens as well the transfer of Monero from the bridge wallet during the burning of sXMR tokens. The multi-signature consensus nodes will be required to stake an amount of value as a performance bond and misbehaving nodes will be financially penalized. Multi-signature nodes share in the revenue provided in bridge fees as specified via the governance model. The Secret Monero Bridge governance model is envisioned to be implemented as Decentralized Autonomous Community (DAC) in the future.

The amount of XMR reserves locked on the Secret Monero Bridge will be made public as well as the amount of sXMR in circulation. These facilities will allow stakeholders to verify that the reserves locked in the bridge Monero we llet equals the amount of sXMR in circulation on the Secret Network.

We have built a Decentralized application (Dapp) running within a web browser that is uncensorable and unstoppable to provide the Secret Monero Bridge user experience. This design pattern (Dapp hosted on IPFS) will appeal to user privacy requirements (extend privacy to the web application itself) and make the system antifragile.

Go-to-Market plan

The Secret Monero Bridge will be a value add to both the Monero community and the Secret Network community and we intend to market it to those two communities.

Value capture for the Secret Network ecosystem

The main KPIs for Secret Network is TVL (privacy value add to other blockchain ecosystems), the Secret Monero Bridge will attract the interest of the Monero community to the Secret DeFi ecosystem. The Monero community requires privacy and the Secret Network should meet those requirements. Currently the Monero community is unable to directly access DeFi services. The Secret Monero Bridge will change that.

The number of transactions and number of user (for applications) projections relative to the Secret Monero Bridge will reflect market supply/demand forces.

Team members

maxkoda
bobcalifornia
segfaultdoctor

Project github repo

https://github.com/maxkoda-cpu/Secret-Monero-Bridge

Team's experience

maxkoda has had over 40-years coding experience as well as 10-years experience as an information systems architect in a Fortune 100 company. Maxkoda has been working in corporate america as well as in many major open-source projects.

bobcalifornia has had over 30-years of coding and UX design experience. Working as an independent freelance consultant and member of many open source projects.

segfaultdoctor has 7 years of professional coding experience with Java, Golang, Nodejs, Ruby on Rails, and ReactJs.
Experienced in building and maintaining production-grade distributed systems in various startups and most recently Amazon

We started the team with the Secret Monero Bridge Proof-of-Concept

Development roadmap

We will require 28-days to move the v0.0.1 release to v0.0.2 on the mainnet, at a cost of 5,000 SCRT

We would desire payment in SCRT (100%) prior to the start of the work effort.

[reuvenpo]

Hey there Secret-Monero team! I went over this grant application earlier today and wrote down some notes. Don't take all of these as requirements, but they are questions that I had while reading the application that I think are worth expanding on:

• I like your plan for hosting the Dapp on IPFS, and providing proof that the TVL matches the supply of sXMR.
• I'd like to hear more about your proposed multisig setup, in particular:
  • what tech do you want to use for the multisig? You mention a DAC - how do you achive this?
  • Do you plan on keeping the swaps private, and if so, how? Especially if anyone can be a bridge node operator, anyone can see the swap history. Users can still send sXMR to a new account privately on the Secret Network, of course.
  • You mention multisig participants will be staking for a share of the fees. Staking what? I think it makes more sense that nodes track uptime more directly than that.
  • How do you envision the governance mechanism to work?
  • You should start thinking about initial bridge partners, even if you won't contact them yet. You don't have to be transparent about names in the proposal, and I believe that you will easily find partners when you need to, but it's the sort of thing you should plan ahead, and not only after you finish the implementation. So ideally you'd have a mention of how many partners you already have, or when/how you'll onboard partners.
• What's the "Dapp secret contract"?

[segfaultdoc]

Hey there Secret-Monero team! I went over this grant application earlier today and wrote down some notes. Don't take all of these as requirements, but they are questions that I had while reading the application that I think are worth expanding on:

• I like your plan for hosting the Dapp on IPFS, and providing proof that the TVL matches the supply of sXMR.

• I'd like to hear more about your proposed multisig setup, in particular:

  • what tech do you want to use for the multisig? You mention a DAC - how do you achive this?
  • Do you plan on keeping the swaps private, and if so, how? Especially if anyone can be a bridge node operator, anyone can see the swap history. Users can still send sXMR to a new account privately on the Secret Network, of course.
  • You mention multisig participants will be staking for a share of the fees. Staking what? I think it makes more sense that nodes track uptime more directly than that.
  • How do you envision the governance mechanism to work?
  • You should start thinking about initial bridge partners, even if you won't contact them yet. You don't have to be transparent about names in the proposal, and I believe that you will easily find partners when you need to, but it's the sort of thing you should plan ahead, and not only after you finish the implementation. So ideally you'd have a mention of how many partners you already have, or when/how you'll onboard partners.

• What's the "Dapp secret contract"?

Hey Reuven thanks for the comments. Per our conversation with Can, we are currently revising the proposal and will address these comments there.

[cankisagun]

Approved!

[cankisagun]

you cannot do that - pls post these questions in the forum, not relevant to the grant