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<p align="center"> <h3 align="center"><code>wⒶR</code></h3> <p align="center">Wrapped AR on Ethereum.</p> </p>

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.

AR - wAR

$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.

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: <img width="800" alt="deposit-ar" src="https://user-images.githubusercontent.com/11312/118031554-4acfd700-b32c-11eb-96b1-b2cd9e7fbb5b.png">

  2. The bridge picks up the deposited $AR, and mints $wAR into the target Ethereum wallet: <img width="400" alt="mint-war" src="https://user-images.githubusercontent.com/11312/118031728-7a7edf00-b32c-11eb-8c2d-c7458e6f6ab5.png">

  3. The user burns 0.005 $wAR: <img width="800" alt="burn" src="https://user-images.githubusercontent.com/11312/118032752-a2227700-b32d-11eb-9c76-d3c0e287a32c.png">

  4. The bridge picks up the burn and releases $AR to the user: <img width="800" alt="receive-ar" src="https://user-images.githubusercontent.com/11312/118032650-87500280-b32d-11eb-825b-bb14f16cbd43.png">

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

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