EE04 - A Dive into Shade Protocol on Secret Network, Plus Airdrop Details

Introduction

Shade is a protocol that will be launching on the Secret Network that aims to provide privacy-preserving algorithmic stablecoins, synthetic assets and indexes, lending products, leverage trading features, fixed income products, and option contracts.

The governance and utility token of of the Shade Protocol will be $SHADE.

What seperates Secret from other smart contract enabled blockchains is the ability to preserve privacy, using Secret Contracts. These contracts enable encrypted input, state, and output which would allow decentralized finance to have a similar level of privacy that traditional finance is able to take advantage of today.

Shade aims to make this accessible to decentralized finance users by providing this large array of financial products built on top of Secret.

Silk

The first product to be launched on Shade Protocol is $SILK, an algorithmic stablecoin that is stabilized by $SHADE. Transactions can be decrypted with a viewing key unique to the address owner of the $SILK, which allows uses to be transparent by choice.

$SILK will maintain peg by using $SHADE as a stabilizer, similar to $UST and $LUNA. When $SILK goes above $1, a user can burn $1 of $SHADE for 1 $SILK, and then immediately sell it, profiting the difference. When $SILK goes below $1, a user can burn 1 $SILK for $1 of $SHADE, profiting the difference.

In addition, Shade will allow users to 'burn' other assets, which are then deposited into a Treasury that is governed by the Shade Protocol DAO. As an example, a user can deposit $1 of $SCRT, and then mint 1 $SILK or $1 of $SHADE.

Launch

Shade Protocol will be actively developed for the foreseeable future, as more products are worked on beyond Silk.

A precursor to the launch will be airdrop event for individuals staking on Terra, Cosmos, and Secret.

Airdrop

A total of 1,450,000 $SHADE will be airdropped to individuals that stake on the following networks:

• Secret ($SCRT) - 36%
• Cosmos ($ATOM) - 32%
• Terra ($LUNA) - 32%

This is possible because Secret, Cosmos, and Terra are all built atop of Cosmos SDK, and are connected via the IBC (Inter-Blockchain Communication Protocol).

Snapshots will be taken between November 7th, and December 13th. Users must remain staked during the entire 36 day period to be eligible for airdrops. This lengthy amount of times means that devoted participants will be rewarded for their commitment.

There will be extra airdrop bonuses if you:

• Stake outside of the top 10 nodes for any of the three networks
• Avoid staking with 0% commission based nodes in the top 25 for any of the three networks

Conclusion

Make sure you get your $SCRT, $ATOM, and $LUNA ready for staking if you're interested in earning some $SHADE airdrops. Remember, you should have your coins staked by the 7th of November (five days from now on) to get in on the snapshots.

Links

• Shade Protocol Website
• Secret Network Graypaper
• Shade Protocol Whitepaper
• Shade Protocol Snapshot Details