SecretSwap is a decentralized exchange on Secret Network. The transactions with it are encrypted thanks to the nature of its blockchain and the DEX offers its users privacy by default. There are bridges to several other blockchains which allow SecretSwap to offer trading pairs for coins and tokens from Ethereum, Bitcoin, Monero and many more chains.
Secret Network is a smart contract blockchain that has Moneros level of privacy. Most other blockchains are by default fully public, this can be a problem because even though your address is technically anonymous, somebody could figure your identity out by observing the transactions carefully and you could end up doxing yourself and how much money you have on the blockchain and how you are spending it. This problem will become more important as cryptocurrencies become more mainstream. Secret Network wants to solve this issue by encrypting all transactions by default, but because some entities could want to share their data, for things like audits for example, it gives them the option of creating a viewing key to unlock transactions that they could share with everyone.
SecretSwap is utilizing the privacy of transactions on Secret Network to offer decentralized and private trading. It is a DEX that works with liquidity pools and an AMM like Uniswap does, meaning that the prices will be automatically set by weighting the supplied tokens in their trading pairs. The DEX can offer trading pairs for any token of its blockchain and thanks to bridges to Ethereum, Bitcoin, Monero and BINANCE Smart Chain you can trade wrapped tokens and coins from their blockchains too. This allows the decentralized, private and KYC-free trade of more than 50 different cryptocurrencies.
The only data that isn't encrypted is the total value and liquidity of each trading pool because that is important information for every trader and liquidity supplier. But nobody can trace your interactions with the exchange unless you share a viewing key with them. One downside about this is that your supplied liquidity and claimable rewards will also be encrypted for you unless you create a viewing key which will cost a small gas fee. You also need to opt-in for each token on Secret Network and this also costs a gas fee. However, you only need to opt-in or create a viewing key once per token or liquidity pool and then never again.
SecretSwap was the first decentralized exchange on its chain but it has a big competitor with Sienna, which is also a privacy exchange and will also launch a privacy lending protocol soon. However, SecretSwap will likely get more traffic because it’s used by the popular Kelpr wallet. SCRT, the native coin of Secret Network, has to be swapped for sSCRT to be untraceable and be privately useable in smart contracts, SecretSwap has a trading pool for them and the Keplr wallet has this trading pool integrated. So, almost every user of Secret Network will likely end up using the DEX.
The SEFI Token
SEFI is the native governance token of the SecretSwap DEX. The holders can vote on how the development pool should be spent, how the collected fees should be used and other possible changes to the protocol. You need 300K SEFI to make a proposal and you can vote on a proposal with any number of tokens. To participate in governance, you need to stake your SEFI which also gives you and APY of currently about 28%. The total number of staked SEFI is visible because every voter needs this info, but how many tokens you have is encrypted.
SEFI has a max supply of 1 billion tokens. 10% of this supply was distributed at its genesis in March 2021, the remaining 90% will be slowly distributed over the next 4 years with the distribution halving each year. The genesis supply was airdropped to stakers of the SCRT coin, Secret Bridge users and early liquidity providers. The remaining 90% will go to SCRT stakers that secure the Secret Network blockchain who will get 4.42%, liquidity providers who get 41.25%, governance participants who get another 10.58%, the development pool controlled by SEFI holders that gets 20% and traders who receive 13.75% via a cashback reward system.
All of the supply is going to users. All tokens are either going to people that trade, provide liquidity, participate in governance, support the Secret Network chain or its going to a fund that the SEFI holders control. This is a superb token distribution.
The token will increase in value if more people use the SecretSwap DEX and provide liquidity. Since its one of very few decentralized exchanges that have privacy by default it has huge potential. The DEX is well established in the Secret Network ecosystem and will grow with it together. However, privacy coins are often targeted by regulators which can make it hard for them to gain value, this is a serious risk for both SCRT and SEFI.
No centralized exchange is offering the SEFI token right now. But you can buy it on its own DEX. You can buy the necessary SCRT coins on and send them to a Keplr wallet, there you can use your coins to trade on SecretSwap.
If you liked my post then please leave a tip, that way we both earn some money!
If you don't have an account on Publish0x then you can signing up here and start earning cryptocurrencies for reading and tipping.
Coinbase, $10 bonus Bitcoin
Binance, 10% discount on fees
Bitpanda, €10 welcome bonus if you trade €25 in Cryptocurrencies
Presearch, 25 PRE start bonus, earn cryptocurrency for searching the web
FaucetCrypto, Earn small amounts of Cryptocurrencies for free
Trade at the MEXC Exchange with a 10% discount
