About

SecretSwap is the main DeFi application behind Secret Finance, which refers to all DeFi applications enabled by smart contracts built on the Secret Network. SecretSwap is an automated market maker (AMM) that creates liquidity on the Secret Network by allowing users to trade secret tokens (SNIP-20 token standard native to Secret Network). For example, Secret ETH (sETH) is a secret token based on ETH tokens that have been wrapped with secret contracts and made private. $SEFI is the governance token behind SecretSwap.

History

SecretSwap was launched in February 2021 on the Secret Network mainnet. Between February and March 2021, SecretSwap operated without a governance token ($SEFI), the latter being introduced on March 31st 2021 ($SEFI Genesis). This initial period without governance token acted as a testing phase, and approximately 10% of the total supply of $SEFI was sold during the genesis sale. SecretSwap has benefited from its parent network's Secret Ethereum bridge since its inception, giving users exposure to ERC-20 tokens. Secret Network also announced that a Binance Smart Chain bridge was in development, which would bring BSC-native tokens to SecretSwap, and was completed in June 2021. Since then, other blockchain bridges have been completed such as Monero (August 2021) and IBC (November 2021), bringing assets from other ecosystems to SecretSwap.

By leveraging secret contracts and secret tokens, SecretSwap is resistant to front-running, enables cross-chain liquidity, and provides enhanced privacy to users. Secret contracts are smart contracts used on Secret Network, and by extension SecretSwap, that have encrypted inputs, outputs, and state. Secret tokens are created using native or off-chain tokens (such as ETH) and wrapping them in secret contracts. Transactions using secret tokens are private, meaning balances, sender, receiver, and other information is encrypted. Since SecretSwap allows only trading of secret tokens, front-running transactions is unfeasible as the transaction data is encrypted, making this AMM more secure for its users.