What is “Wrapmeister”?
Peercoin < – > Ethereum
Wrapmeister is a software stack that allows for cross-chain communication between Peercoin and various evm-based blockchains (Ethereum, Matic, Binance Smart Chain and so on).
It allows for the creation of a pegged token “wPPC” which is redeemable for Peercoin in 1:1 ratio.
wPPC is an ERC20 (or equivalent) token on evm-based blockchains and can be used as any other token on these platforms.
What is Ethereum?
Ethereum is a popular smart contract platform, a blockchain, but made to run small applications like these “swap” contracts we are aiming at.
Will I need ETH to work with this?
Well, yes. Ethereum operations cost. Fees toward miners are paid in “ETH” token. Luckily “ETH” token is easy to find as it’s tradable on pretty much all exchanges. One does not need excessive amounts of “ETH” to do swaps on Uniswap. Uniswap trades cost about $10 of ETH at the moment of writing.
Other evm-based chains are cheaper by an order of magnitude, so if you are not thrilled with spending so much “ETH” to trade Peercoin on Uniswap, be patient as Wrapmeister will soon bridge to cheaper smart contract platforms.
The primary goal of Wrapmeister is to get Peercoin on popular AMM contracts like Uniswap, PancakeSwap, and Balancer. The secondary goal is to experiment and learn more about cross-chain communication.
What are AMM contracts?
How does wrapping work?
In its current iteration, Wrapmeister is rather simple. During the “wrapping” procedure, each user is given a unique peercoin deposit address. As soon as this transaction is confirmed, the user is allowed to mint wPPC (wrapped peercoin token) on the Ethereum side. As this happens, the deposited peercoins are moved to a multi-signature address which safeguards the coins. During testing, this multisig takes 2/3 signatures to release funds.
Who controls the multi-signature address where all the coins are stored?
A select group of forest animals living in Romania. ref
How does unwrapping work?
Unwrapping revolves around “proof of burn”. A user is required to destroy their wPPC token on the Ethereum side and bring that evidence to the multisig operators in order to release their peercoins. This process is automated and happens without user intervention. A user is basically clicking buttons. Once the wPPC token is destroyed, multisig operators get notified and can manually inspect the burn transaction and all other records left on the blockchain. Upon manual inspection by multisig operators, coins are sent to the desired address. In this initial version of Wrapmeister, the unwrapping process may take up to 24h, so please be patient.
During testing, this custodian address will not be multisig, to make the testing easier. As we move to production, custodian address will be 3of5 or 4of6 multisig.
Plans for the next iteration of Wrapmeister are almost finished. Through combination of new ideas and lessons learned from this project, I can safely say that I know what to do for the next iteration. It will do cross-chain communication as well, but it will use atomic swaps. So, wPPC would be exchanged for PPC in a completely trustless fashion. Magic.
When will this next iteration go live?
Work on the next iteration will start as soon as this one hits production, and as soon as you donate to the Peercoin Foundation…
This only works on v0.11!
Desktop wallet supports testnet.
Just run it in testnet mode.
Now fetch some tPPC from the faucet.
This extension makes an ethereum-handling wallet out of your browser.
After setting up the extension on your browser, change Metamask network to “Ropsten Test Network”.
Once you set up the Metamask, you need some “fuel” which is used for transaction fees. Visit one of the following testnet faucets to obtain some testnet ethereum:
https://faucet.metamask.io/ https://faucet.ropsten.be/ https://faucet.dimensions.network/ https://ipfs.io/ipfs/QmVAwVKys271P5EQyEfVSxm7BJDKWt42A2gHvNmxLjZMps/
You will not need more than a fraction of testnet ETH. About 0.2 is enough.
Click the “Add Token” button and input the following contract address so Metamask will know how to handle it.
USDC is a popular and respected USD “pegged” token. 1 USDC trades for 1 USD.
0x07865c6e87b9f70255377e024ace6630c1eaa37f to Metamask.
So Metamask will know how to handle it.
Should be self-explanatory, click on the “Wrap Peercoin” button and input required information. Wait for a while, so peercoin transaction confirms.
mind that your Metamask is still set to Ethereum-Ropsten network
Manually add two tokens we’ll be swapping:
Should be fairly self-explanatory from here.
Swaps will take 0.3% fee.
You can add liquidity by clicking on “Increase Liquidity” button. Mind that you need about equal ratio of wPPC and USDC to do so.
Fairly straightforward, click “Unwrap Peercoin”. Input desired amount and the peercoin address you want to receive your coins at.
Please report in the comments below how your testing went, if it went smoothly or if there were any issues. Also report any feedback you may have for us to improve the user experience.