Secret Network, an anonymity-based blockchain, has announced the launch of its “Secret Ethereum Bridge”. It transforms ETH and ERC-20 into anonymous tokens.
Anonymous ERC-20s thanks to Secret Network
As a Secret Network blog post explains , the „secret“ versions of these ERC-20 tokens or ETHs allow anonymous transactions . ERC-20s keep their ability to be programmable, but “ private by default, like Monero and other similar altcoins . “
The “bridge” between Secret Network and Ethereum works like this: secretETH (or secretERC-20) are produced when the original tokens are locked on the network . If the user wishes to convert his tokens to their original version, the ETH / ERC-20 secrets are destroyed, and the original tokens removed from the deposit contract.
This is a first step for Secret Network, which wants to extend these features to other blockchains. The service will also soon launch “bridge mining”. This is to reward users who lock their ETH and ERC-20. The latter will receive in exchange the SCRT, the native cryptocurrency of Secret Network. In total, 2 million SCRTs will be allocated to the community.
Make DeFi anonymous
The maneuver has one main goal: to launch anonymous decentralized finance services ( DeFi ) thanks to the Secret Network. The press release explains:
“This is a first step before creating a private DeFi ecosystem by default and compatible with several channels. “
This ambition can be seen in the choice of tokens that are compatible with Secret Network. For the moment, only about fifteen tokens can be transformed, and they are linked to decentralized finance projects . Here is the list: ETH, YFI, UNI, BAND, COMP, LINK, AAVE, KNC, SNX, OCEAN, MKR, DAI, USDT, TUSD and WBTC.
Users can now test the bridge between Ethereum and Secret Network, and distribution of rewards is expected to begin in January.