Today, we are really happy to announce that the Shareslake Bridge goes live! This first release of the bridge allows moving Redeemable between Shareslake and Cardano.
To date, there is no stablecoin on Cardano mainnet, and thanks to the Shareslake Bridge, Redeemable will become the first Cardano stablecoin.
Remember what is Redeemable
Although Redeemable is not a pure stablecoin, because its price is not pegged to a fiat currency, gold, or other assets, it is pegged to the "living costs". From our point, a stablecoin that is pegged to a fiat currency, such as USD, is not actually stable since its purchasing power will decrease with time.
This effect is evidenced in recent months, where inflation has rise to levels never seen before. During the current year, 2022, it is expected that the USD purchasing power will fall by around 10%. So if we think of USD-pegged stablecoins, they will behave the same. So, we wonder where is the stability?
We consider Redeemable the real "stablecoin" since its purpose is to always maintain the same purchasing power. If the cost of a pear is 1 RED, it will always be 1 RED, no matter how fiat currencies behave.
All that is achieved by collateralization of the Redeemable into a reserve that generates and accumulates interest, thus, more and more fiat backs up each RED with time, preserving the Redeemable purchasing power.
How the Bridge works
The Shareslake Bridge usage is really simple, you just select the direction of the transaction, i.e. Shareslake -> Cardano or Cardano -> Shareslake, and specify the destination address.
When you enter the bridge you will see the following screen to select the transaction direction:
Once you select the direction, you will see the following screen to connect your wallet, specify the destination address (on the destination network) and the Redeemable amount, and the submit button.
And that's all! Just sit and relax while the transaction appears on the destination address of the destination network. It will just take some minutes required to ensure transaction settlement.
How to get Redeemable in Cardano
There are currently two options to obtain Redeemable in Cardano mainnet. Obtain it by exchanging other assets in Cardano DEXes. Or, obtaining it by interacting with Shareslake reserves through the dashboard and moving it to Cardano through the bridge.
On our website, you will share information about the Redeemable policyID and asset name for Cardano mainnet.
For the technophiles
To limit the impact of possible issues we implemented "firewalls" per network.
The actual home of Redeemable is Shareslake, where the amount of Redeemable is guaranteed to not change. This means, that a user who has Redeemable in Shareslake does not need to worry about any possible errors in a bridge.
Let's suppose we want to send 10 Redeemable from Shareslake to Cardano. The firewall will lock 10 RED in Shareslake and the bridge will mint 10 Redeemable in Cardano mainnet. Then, when we want to move it back, the bridge will burn 10 Redeemable in Cardano and unlock the Redeemable in Shareslake.
Now, let's imagine that a minting issue happens in Cardano, and more Redeemable than the amount that was actually locked in Shareslake is minted. In this case, only 10 Redeemable will be able to come back to Shareslake (the amount that was locked) so the issue does not get propagated to Shareslake mainnet and will only affect the people who moved Redeemable to Cardano.
In that way, Cardano as well as any future network added to the bridge are isolated, limiting the impact of any possible errors.
The bridge makes use of transaction metadata to know the destination network and address. Also, when the minting in the destination network happens, for example in Cardano, the bridge adds the origin network and transaction hash that produced such minting to make easier the transaction traceability.
Bridge processing time
The bridge processing time is highly pegged to the network block production. Before processing a Tx on the destination network the bridge waits for some blocks to be added on top of the origin network transaction. This simple mechanism helps to avoid processing a transaction that can be rolled back later, which would result in a ghost minting (minting Redeemable in Cardano that is not locked in Shareslake).
We hope to see you around the bridge, and as always, our Discord community is open to all of you!