How's it going everybody? Welcome to Secret Spaces, a weekly Twitter space featuring core secret network contributors and news from around the ecosystem. Today we have an awesome development team with us, the Arufa Research team. They built a couple of different products around the IBC ecosystem and are currently working on
on one for Secret Network right now. A new decentralized exchange called SecretSwap 2.0. Excited to get into that and learn about all the new features that includes. But before we start with that, let's go ahead and do a quick recap of the past few weeks of stuff that's been going on on Secret because we've had a lot going on
So a few weeks ago, a shared protocol, it released a swap at privacy preserving decentralized exchange. A shared swap has a special focus on cosmos, staking derivatives, and stable coins. And then just a few days later, a shared protocol
release Trader Linde, which is their lending protocol, and Silk, which is a pretty unique privacy preserving stablecoin. It's unique not only because it's private, but also because it's not pegged to just one currency, like most typical stablecoins you think of, you think it's pegged to the US dollar
or something like that, silk is actually pegged to a basket of global currencies. So you can think of it more as a stable store of value. So those three product launches happened a few weeks ago. And then this past week on Friday, Blizzard Finance launched, which is another new decentralized exchange.
built on secret. Blizzard is a balancer like decks that also features curve like stable pools. They have a couple different things that aren't featured by the shade like Ethereum and Bitcoin pools. They also have
a token called snow and I believe eventually going to add some aggregator type features where it'll help you find the best possible flop across all Dexas on secret. That's not live quite yet but I believe that's supposed to be going live soon.
And then in addition to those new DApps that have launched, we also have the Secret Surge campaign going on right now. That started a couple weeks ago. And Secret Surge is meant to help grow these new BFRI products that are coming on Secret. It's a six
a long Wi-Fi incentive program. The basic idea is you provide liquidity on these new decentralized exchanges and in return you get boosted rewards. So on top of the typical liquidity provider rewards that you get, you also get additional secret and additional tokens from the
So with shade you get the shade token with Blizzard, you get the snow token. So all that has been going on in the past few weeks and now here today we have the Secret Swap 2.0 team who will also be participating in Secret Surge. So there's been all kinds of deep
5 launches over the past few weeks, huge explosion of private defy growth and the ecosystem. And sorry to get into the secret swap 2.0, learn more about that. Let's go ahead and get started by introducing our guests. We have with us today, Udit or Udit.
You want to introduce yourself? Yeah, by the way, you can hear me fine right?
So, I guess I have even I am with that from Aruhar research. I am one of the core developers and you are working on secrets of the point of which is currently live and
and alongside that there's also a revised version of Stag easy which is also live and testnet and we'll soon be first making Stag easy live and a few days later the secrets out to print out will also be live.
Awesome. And did you have one more guest that was going to come up? Wasn't sure if he was going to be speaking as well. Yeah, I believe it'll just be more fun now.
Okay, cool. All right, so a Rufa research, it's a development team. You want to just tell us a little bit about maybe how you guys started developing in the Cosmos ecosystem and what you've built so far? - Definitely. So my journey started back in January 21 when I was working in a...
trading firm, building, C++, my co-founder was already working in a company where he was building some tooling for Algorand blockchain which was quite similar to how Hardett and Truffle Albert on Ethereum which makes it quite simple to develop part-contracts on a chain. So he had that experience
experience and I got interested in how cryptocurrency and blockchain works I discussed, how the development thing in blockchain's ideas. So over time around I think in April we started to discuss ideas on what could be done and what's the missing blocks that we can fill and
without understanding. We came up with a solution that there is. So Amit came, found out about Secret Network because his teammates were already working in calls for us. He introduced me to it. So I saw the idea. I found it really interesting that no other network is doing private smart contacts and this is something
new and that can actually add a lot of value to the end user. So I saw what the landscape for smart contract was, I understood. So that was my first encounter with Rust. I tried to understand Cosmose and it was a bit daunting at the first, but then it's
started to make a lot of sense for me. So over time we saw that they're definitely the need for a similar tooling here and a lot of things which can be made specific to this in terms of tooling that we can apply. So we started work on that. We got in contact with SQL app stream. We got a grant to work on it and we delivered the
first three milestone I think by December 21. So since then also we have also made a lot of new changes to also the framework itself was called polar. This framework makes it quite simple to develop any kind of smart contracts, not just develop them but
deploy them to network test them out and possible in future also monitor them. After that we understood how smart contracts work and how they are implemented. We started to see how else we can add value to it or how else we can improve the utility of the whole ecosystem. At that time I don't think there was any
the liquid sink protocol being built in cosmos at least publicly. So we saw that this is something that has been released to enter within the Ethereum ecosystem where a leader was working on it. And so it made a lot more sense for us to develop that within cosmos. The difference is that within cosmos there is a huge inflation for staking, which
makes it really hard for D5 yields to compete with that. On Ethereum you have like 3 or 4% stake in interest where like nobody, let's say yield from a D5 protocol for instance 5% or 6% would be sustainable but within Cosmos like currently even currently it's 24%
of the network. So it made sense that if we do end up building a stable and extensible liquid signal protocol that can be integrated into any defa protocol, that would be a lot more value to note the CNU subbut for the whole D5 system to grow. So we started work on that. We released it
on mainnet on 18th March last year. And then we re-did the whole model where we introduced not just one sticking token but two liquid sticking tokens. That we first implemented in Juneau, I think that got released on August 22. After that same model,
We have applied here with the next iteration of Steg easy 2.0. So that is already live on Sheikah Network. Test and you can go check it out. The links have already we have provided within our discord community and on Twitter. So yeah, I'll let you talk a bit about how that differences and how we have been doing. So thanks.
Awesome. So Polar, a development framework that makes it a little bit easier to develop applications on the secret and then stake easy, which was one of the first staking derivative protocols built for the Cosmos ecosystem that's available on several different
and it's not just secret. So some awesome contributions to the IBC and Secret ecosystem so far. Definitely a talented team. And now you're taking on a new challenge. How did you come to be involved with Secret Slot?
So when we were thinking about building a swap, we looked at what has been done historically for different kind of EMMs you can say within different blockchain ecosystems like first came Uniswap, then
So, we looked into what are the possible missing blue
blocks that makes a deck much more sustainable over a long time. And we saw that together, there's a need for a good implementation of the gate system within the secret network. So that was missing and we saw the same concept working well for wind out.
And it made sense for us to release that and have that be accessible to the signal and community. And we discuss how not just in terms of the functionality, it can be improved, but also from the UI perspective, from the UX perspective. So a couple of
features we came up with. Persons like we have seen in aetherian ecosystem that it's super easy to list any token or a pair or incentivize a pair without actually needing permission or getting in contact with the core development team. If you look at how new tokens
are listed within Cosmos for example if you want to list on osmosis this osmosis frontier which you can permission us to list any token but still you have to make a PR to their GitHub repo to their front end to say that okay this is the logo of my token and this is the ID this is the metadata that your front end at least the frontier should
So that again is not 100% permissionless because then someone from the responses they have to must at PR and a better solution has been implemented by a lot of exchanges in Ethereum where like they have built these interfaces where you just as a project as anyone who's integrating an
token can just list out this metadata through their interfaces without having to actually needing them to merge any kind of PR and not just that but you can also permissionlessly through their interface not requiring any CLI node is not requiring any writing or scripts you can just say
that will be here is the pool I want to create and for this given pool I want to have this much incentive where I am providing this money tokens and you just provide that okay how the price of this token is going to be fetched within the protocols pool itself or it's going to be some external Oracle.
those things, the whole process is quite seamless and permissionless. So that makes a lot of sense for us to develop from the UX perspective. So two core pillars that we have highly focused on, one is the on the
direct side is implementation of gate system. Second from the UX perspective is the governance, the listing of new tokens and incentivizing them will be made all permissionless and seamless through our custom-made UI. So in terms of gauges, what the benefit is that
Currently, if you look at how the incentivization of the native earnest organ works is you have to at least put out a proposal within the community saying that okay, this is my token and this is the pairs that are listed and we as a project do produce value within the ecosystem and we have
of ourselves provided some incentives over a long time and proven that this is some legit project and has some long term value with that. So if you want to align the value with us, these matched incentives with the incentives we are providing. So that process takes a lot of time, takes a lot of community input
and then it goes to vote and then voting period happens. Once it gets passed, then the DEF team actually updates the parameter to say that okay, part of inflation would also give go to this particular pair. In terms of when there's a gate system, what happens is that there's no need for any
proposal to be created, not only for any formal discussion, like you can definitely discuss whether this pair should be incentivized or not, but anyone who is holding the governance token, the VGID token, can just what and whatever the what percentages that percentage would change every week. So every week,
Depending on whether the spare is generating any volume or fees for the decks itself or Providing incentives for this particular pair would make any sense for the community or not So the community can itself decide on its own. They don't have to pass a proposal. So that's one You can say simplification and
Basically an extra step being skipped where there's no need to pass this proposal and waste any time in it. So the community has no more power over it. You can't actually do things like where the dev team themselves decide on their own.
is a very small part of the whole community that's kind of like owning the protocol. So the whole control of incentives has now completely gone to the community. The flow of incentives is now more seamless. So these are the two main benefits of having this kind of system. And yeah, I think that is how I mentioned.
awesome. So I'm going to emphasis on the utilization and governance. I'm just looking at the Seagr Swap 2.0 white paper right now just to read off these features to make sure we didn't miss anything. If features obviously private swaps, stable pairs for low slippage, front running was
consistent governance based incentives, IBC connectivity integrations with liquid-staking protocols integrations with actual assets and permissionless pools. So that's all very cool. And I know it's on test now. Right now, how is that going?
I think your mic might be messing up. Okay, is it fine now? Yep, it's good. Okay, so yeah, Tessent has been going so far. A few optimizations
that we need to do in terms of speed. So the pool list page currently loads a bit slower. So that we are working on optimizing for right now. But in terms of functionality, no major issues has been found even in for different
So I think we are already done with the stay easy front end so that people can expect the main net to be coming very soon for that and yeah, test net has been like going so far.
Nice. So along with the Maynet launch, I assume secret surgery awards will probably be going live around the same time.
Within the first week of May, people expect the search rewards to go out. The search rewards would be masked with our governance token rewards, as was mentioned in the
forum discussions. So we'll also be doing aerofs before that or within the same period we are just finalizing on that first we are finalizing on the implementation side and soon
will just announce all the topomics detail, all the blog posts on tutorials on how you can utilize certain features and how to optimize your usage of the protocol.
Awesome. So for search users will be getting the slick token, SLIQ. That's the native token of SecretSwap 2.0. What does that ticker stand for? I've always been curious.
So actually it stands for secret liquidity.
But yeah, if you say it like slick, it also sounds like a flick thing. - Gotcha, yeah, that makes sense. See real liquidity, okay.
So you have integration with the stake easy liquid staking protocol and you mentioned that it has two different liquid staking tokens.
which I think is kind of unique for a liquid-staking protocol at least for the ones I'm familiar with. You want to go into detail about how those two tokens differ, like what are the features of each?
the new token. So what happens right now, if you look at any liquid signal protocol within first one, there's one, it sounded a little bit far away from the mic again. So there are three ways a liquid signal token can be implemented.
implemented in terms of like mechanism. One is you have an inflationary value token which has been a secret and the state secret by
Think you're Mike's floating away.
how it now. That's good. Okay. So this first mechanism is the liquid second token appreciates in value where at the beginning one stick token can be redeemed for one secret token, but over time this one stick token could
be redeemed for 1.01 or 1.02 secret token because now it's counting for the inflationary rewards that's taking a stem rating through the network. Second mechanism is where not the value of the token would increase but the number of tokens would increase. So if there's
1% increase in interest that has been accumulated. There would be, let's say in Existence there are there, there is 1000 secrets digged. So once the 1% inflation is set, now the number of token would be 1,010, I think.
So it will increase in the number of tokens, but one liquid stake token could still be redeemed for one secret or one on stake token. The third mechanism is the number of stake, liquid stake token would remain the same, but
anyone who is holding this liquid sticking token can manually come and claim their sticking new words. So that's how the new token is implemented. So our two tokens are the first mechanism and the third mechanism. So the first mechanism is how SEC credit works and the third mechanism is how BC credit works. So
The reason of having B secret is if you provide liquidity for instance for SC secret, secret pair or any other liquid sticking token that has the same mechanism. What would happen is that now since the first token is appreciating and value with respect to the second token,
Although the appreciation is very slow over a small period of time, but over a long period of time for example currently inflation is 24%. So after one year the ratio would be increased by 24%. So one is one ratio would become 1.24 is to 1 in the liquidity pool.
Since the ratio has changed, there is a fixed impermanent loss that the liquidity provider has to bear. And so it's a minor impermanent loss, but it's a fixed impermanent loss that does actually always happens. What we have done to remedy this is if you provide liquidity
if a B secret secret pair. Now B secret will always remain one is one pact with secret and if you're holding B secret just like you are taking your Normandy secrets to Kapler you go to Kapler and let's say every day you claim and restart it or maybe
is that fine now? Yes, let us cut. So as I was saying, if you provide liquidity to B secret, secret pair, now there is zero implement laws but where does the second award go? The liquidity pair is holding the B secret. All the liquidity rewards are claimable through this contract
only this pair can claim it. But since it's a contract, it can't actually claim it. What we have done is that we have implemented the pair in such a way that the pair can every 24 hours claim those taking rewards and redirect those taking rewards back to the liquidity providers as external rewards. So you
are still able to claim those liquid state in the world if you are still providing the liquid for your B secret secret pair or B secret atom or B secret June of air or B secret USVC pair. Now the main benefit of doing this within secret swap is that since if you look at
But the most liquid asset within secret network is it's the secret token and so it It is natural that most of the liquidity within a Dex built on secret network would have majority of its liquidity denominated in secret So that secret is sitting idle It's it's obviously generating fees
by through the swaps, but it's not being generating any sticking rewards because it's not stick to any welder. So it's losing out on that inflation, but if you have a replace most of your secret in your liquidity within the protocol itself with B secret, now most of that secret
liquidity is generating a 24% interest in denominated in secret, which is going back to the end user. So the benefit here is that you can provide the sustainable incentives to the liquidity providers over long term. You don't have to primary rely on your own incentives. Again, there is
the negative side of providing your own incentives is that it needs to have intrinsic value, sustained intrinsic value over time and it needs to be a very strong intrinsic value. But if you also provide liquid-staking rewards to your liquidity provider alongside that, it
It makes it even more predictably sustainable incentives because you can say that the value of underlying secret token would sustain more over time than any particular case. The secret token is capturing value not just for this protocol but for the whole network itself.
But the governance token of this protocol is just like tracking the value generated by this protocol. So that's one thing where it's beneficial to the liquidity providers. They are getting additional yield on top of their one step providing liquidity. This benefit to the protocol where they don't have to do
heavy inflationary rewards. There is also one negative point, if you do end up providing a lot of heavy incentives, there is a risk that it will actually end up losing a lot of value because now there is a lot more circulating supply. So it takes the burden of the governance token to be the primary incentive
within the network. So essentially making the incentive is much more sustainable a long time. So in a way that's equally as important additional feature as the gate system because if you look at these two things combined, the gate system is able to
to give the control of governance incentives to the community and the B secret integrations gives the incentives much more value to it. So essentially creating much more value for these
provided incentives. So these incentives are not just a token given to you, which you can maybe sell. It actually has some intrinsic value. And yeah, that whole thing combined makes the whole protocol much more sustainable and much more sensible to anyone who's interacting with it.
Yeah, it okay cool. That's a really innovative design. I just pinned a tweet with the secrets. You point out a white paper and if anybody would like to take a look at that and learn more about all those things that he just mentioned, you can read through that in detail in there.
So we're about halfway through the hour. This is usually the point where we ask the audience if they have any questions for our guests. If you want to go ahead and start putting your hands up, if anybody has questions about SecretsWap2.com.
or anything else the Arufa Research team is building. Now is your chance. Go ahead and stick your hands up and we'll bring you on stage. In the meantime, is there anything else that you want to mention to do?
Yeah, I think most of the things have been covered. Yeah, just walking towards getting the main threadies.
Awesome, well, good luck with that. Any chance you could mention the pools that you're expecting to support surgery words? I'm not sure if you know that yet. If you don't know yet, no worries. So we have finalized the pools. I'll just pull up the list for a minute.
I think initially there will be a
I was thinking I heard you.
Yep, sounds good. Go ahead.
Okay, so there would be 5 cools, 1sb secret secret, b secret atom, b secret USTC, b secret slick and let's see
one more. One, yeah, the last one would be SEC grid secret. So these five would definitely be there at launch. There could be a couple of others that we haven't decided yet, but yeah, these five would definitely be there.
got it. Okay, cool. It's like we do have one request from the audience. Let me go ahead and bring him on stage.
- Not sure if that worked.
does is able to speak online device, but sometimes it lags.
Sorry about that. We just won one moment. I'll try to get him on stage.
It looks like you dropped off, unfortunately. Maybe you'll come back and drag in.
All right, well in the meantime, if nobody else has any questions, have a couple more things I can mention about events that are coming in the next week. Tomorrow we have the Yoyu launch. It is a launch pad being built on secret token launch pad. And I believe they
have a token planned to launch soon after they launch. So that should be coming very soon. In addition to that, at the top of this hour, we're going to be putting out a teaser about the upcoming network upgrade. It's going to list all of the main features
and that network upgrade is going to be coming on May 16th. The on-chain proposal is live now. You can actually go ahead and vote right now. So go ahead and check that out and vote. And next Tuesday we should be seeing a new network upgrade.
Anybody else has any questions before we close out of space? Feel free to go ahead and raise your hand now.
Thank you for being with us today and looking forward to seeing this secret swap to a 2.0 launch. Anything else you'd like to say? Working people follow you on social so that they can keep up with all your progress.
So there is Twitter handle for Secrets, which I think has been mentioned in the title. There is Twitter handle for Stake Easy. There are links for Telegram and Discord channels on those Twitter profiles you can go follow.
was you can if you want to discuss anything suggest us or have an issue you can come to our discord or telegram and let us know other than that yeah but thanks Lord for hosting us and yeah it was fun sharing what we are developing and looking forward to launch
Well, we will see everybody here next week for secret spaces. I believe we're going to be focusing on the network upgrade. So be here on Tuesday at 4 p.m. UTC and you'll learn all about what's included in that network upgrade. Until then, everybody have a good week and see you next time.