README.md

May 15, 2021 · View on GitHub

wⒶR

Wrapped AR on Ethereum.

Overview

wARisanERC−20tokenthatmapsone−to−onetowAR is an ERC-20 token that maps one-to-one to AR.

This is enabled by a custodian, a (trusted) entity responsible for running a bridge between the networks. It holds ARandisresponsibleformintingandburningtheequivalentamountofAR and is responsible for minting and burning the equivalent amount of wAR. Users interact with the bridge when depositing and withdrawing $AR.

How It Works

ARtoAR to wAR

A user first deposits ARtothebridgeArweavewallet.Oncethedeposithasmined,thebridgewillpickitupandminttheappropriateamountofAR to the bridge Arweave wallet. Once the deposit has mined, the bridge will pick it up and mint the appropriate amount of wAR to the provided Ethereum address. This is made possible via an ownable ERC20 contract.

AR - wAR

wARtowAR to AR

A user first burns their wARbyinteractingwiththeERC20contract.Oncetheburnhasmined,thebridgewillpickitupandtransfertheappropriateamountofwAR by interacting with the ERC20 contract. Once the burn has mined, the bridge will pick it up and transfer the appropriate amount of AR to the provided Arweave address.

wAR - AR

Interacting with the bridge

To interact with the bridge, you can either use the UI (WIP) or manually send a transaction to the wallet provided by the bridge. When sending an $AR transaction make sure to use the following tags:

Application: wAR - DEV
Wallet: [YOUR_ETH_ADDRESS]

Example Transactions

  1. The user deposits 0.01 $AR to the bridge Arweave wallet, specifying the target Ethereum wallet: deposit-ar

  2. The bridge picks up the deposited AR,andmintsAR, and mints wAR into the target Ethereum wallet: mint-war

  3. The user burns 0.005 $wAR: burn

  4. The bridge picks up the burn and releases $AR to the user: receive-ar

Keeping the bridge accountable

To keep the bridge accountable, the custodian can buy tokens from a PSC/DAO and needs to stake them. For every swap sent to the custodian, a fee is sent to community. When the custodian misbehaves, the staked tokens can be slashed by the community. When the amount of $AR in the wallet exceeds the staked token values, the custodian needs to buy more tokens to ensure accountability.

This allows anyone to buy into the profit-streams of wAR.ThemorewAR. The more wAR a user has, the higher the chance for receiving the fee is. Everyone inside the community can vote on the size of the fee.

Roadmap

  • Test on Ganache.
  • Test on Rinkeby, etc.
  • Deploy on Ethereum mainnet.
  • Build a UI for easy usage.
  • Implement staking

Disclaimer: KYVE will not run the bridge. We are only providing the technical solution for $wAR.