Incognito new products

Hello everyone,

In this topic we’d like to discuss with you on products (besides infrastructure improvements) we plan to build for Incognito in the Q2. The products intend to serve end-user’s needs and it’s always helpful to have feedback from you who will use the products for your daily crypto activities.

Incognito’s Q2 roadmap >

Privacy Multichain

Currently, there are many blockchains supporting the same cryptocurrencies and likely there is a demand for cross-chain conversation an asset from one network to another. For example, one might want to convert his USDC from Ethereum to Solana to benefit from Solana’s high speed by using the network’s dApps. And another might want to convert her USDC from Solana back to Ethereum since she wants a higher security level of Ethereum’s decentralization. The same capability may also apply to the bridged networks such as Polygon, BSC, Fantom, etc.

Based on our limited knowledge, there were a few existing solutions for the demand already but a solution that can support privacy, low fees and ease of use, are unlikely existing yet. You might feel familiar with this as we discussed in the pUnified Token proposal.

The following workflow illustrates how Incognito serves the demand:

Alice converts 1000 USDC from Ethereum to Solana

Bob converts 1000 USDC from Solana to Ethereum

Incognito stablecoin

Generalizing the above approach, we are able to unify big stablecoins (eg. DAI, USDC, USDT) across networks as the value of the stablecoins should be around $1. For instance, one can swap his USDC from Ethereum for DAI on Polygon with 1:1 rate. In other words, once shielding stablecoins into Incognito, you will obtain a unified stablecoin named $USI for now that allows a user to unshield to other stablecoin in a prefer network.

Theoretically, the $USI stablecoin’s price stables around $1 because its backed stablecoins’ prices are stable. We believe that beyond cross-chain stablecoins swap, having a privacy stablecoin will open up more use-cases for users, especially as crypto payments are having better adoption now.

The following illustration shows how users can swap stablecoins with 1:1 rate.

Alice swaps 1000 USDC from Ethereum for 1000 USDT on Solana

Alice swaps 1000 USDT from Solana for 1000 USDC on Ethereum

One common question for both above functions is what if there are insufficient funds for a specific token on a specific network left in a vault, how does the protocol solve the issue? A simple though is that it will need to have an incentive for operators to “refill” the lack and the operators can be anyone, not only the core team.

Specifically, in the normal situation (aka there are sufficient funds in the vault that a user wants to get from) the user doesn’t need to pay any fee but networks fees. Otherwise, a request will be put into a queue and operators who send funds to the vault will earn rewards paid by the requester. The rewards are x% of the requested amount where x is to be defined and should be high enough for operators to cover fees (eg. swap and withdrawal fees) outside of the Incognito. Thereby, operators will have sufficient motivation to “serve” requesters and requesters will be able to get their favorite tokens on favorite networks.

Privacy savings

The third product we want to discuss is about savings. Along with the unified tokens across many blockchains for convenience and privacy by default, high yield earnings from spare crypto assets may also be a thing that people is seeking. With the current infrastructure and pUnified tokens protocol, Incognito can integrate with multiple lending platforms in order to collect all high yield opportunities for every supported token from the platforms.

As illustrated in the above diagram, a user can stake his USDT (please note that in our illustration, USDT isn’t in the supported token list, only USDC and DAI are) under representation of $USI (Incognito stablecoin) to earn 12% APR from a lending platform (aka Aave). Or a user can stake ETH from BSC to earn 3% APR regardless of Aave or Compound not existed on BSC.

Closing thoughts

That’s it for now, we’re just presented 3 ideas for products that the dev team plans to build in the Q2. As always, we’re really looking forward to hearing your thoughts since you will be the first users and owners of the products (we believe that you know what we mean :blush:)

Thank you!


Huge :100: :boom: :dizzy: :tada: :confetti_ball: and private :black_heart: