wⒶR

Wrapped AR on Ethereum.

Overview

$wAR 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 $AR 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

$AR to $wAR

A user first deposits $AR 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.

$wAR to $AR

A user first burns their $wAR 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.

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:

2. The bridge picks up the deposited $AR, and mints $wAR into the target Ethereum wallet:

3. The user burns 0.005 $wAR:

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

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. 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.