The Creditcoin Foundation is proposing the creation of an ERC-20 wrapped CTC (mainnet) token on Ethereum in order to facilitate mainnet liquidity. This token will be called wCTC.
A newly created swap tool will allow users to request wCTC at a 1:1 ratio by sending CTC (mainnet) to a specified address on the Creditcoin mainnet. Utilizing the same swap tool, users will also be able to swap back from wCTC to CTC (mainnet) at a 1:1 ratio.
Once users have swapped their CTC (mainnet) for wCTC, they will be able to trade their wCTC for G-CRE on a floating Uniswap pair. The Creditcoin foundation will provide limited liquidity to this pair in order to allow users to liquidate their mainnet tokens.
As there is no direct way to bridge tokens from Creditcoin to Ethereum, the Creditcoin Foundation will operate this swap tool privately.
There are important factors to consider before voting. We have summarised any anticipated concerns below to help inform the community:
- Centralized - The wCTC token swapping process will be centralized, being conducted manually by the Creditcoin Foundation. To mitigate the associated risks, we will publicize the relevant contracts and wallets to maximise the wCTC ↔ CTC swap transparency.
- Price impact + slippage risk - As the G-CRE ↔ wCTC pair on Uniswap uses a floating exchange mechanism, there is a significant likelihood of price slippage between the two tokens, meaning that wCTC could end up trading at a discounted price to G-CRE. While CTC (mainnet) ↔ wCTC is a 1:1 quantity conversion, the market will determine what the wCTC → G-CRE price will be.
- Development time - Implementing a new wCTC token will take development time away from Creditcoin 3.0.
For more information on why a two-way CTC (mainnet) ↔ G-CRE bridge isn’t possible, please read our blog post: https://creditcoin.org/blog/wctc-governance-proposal/
Technical Implementation Specifications
- Gluwa will develop a new swap wCTC (ERC-20) ↔ CTC (mainnet) swap tool.
- The swap interface will be hosted on the Creditcoin Website.
- The wCTC ↔ CTC (mainnet) swap will follow a 1:1 quantity conversion ratio, excepting any swapping fees (see below).
- To cover the cost of transactions on Ethereum, the following swapping fees will be applied:
- CTC (mainnet) -> wCTC (ERC-20)
- Fee: 10 CTC paid by the user (subject to change based on market conditions). This fee covers the Foundation’s wCTC transaction costs on Ethereum.
- Example: If a user sends 100 CTC, they will receive 90 wCTC.
- wCTC (ERC-20) -> CTC (mainnet)
- Fee: No CTC fee. Users must pay any ETH gas fees directly during the transaction.
- Example: If a user sends 100 wCTC, they receive 100 CTC (mainnet).
- CTC (mainnet) -> wCTC (ERC-20)
- The Creditcoin Foundation will publicize the CTC (mainnet) and wCTC (ERC-20) contracts and addresses used for the swapping of tokens in order to ensure transparency.
- As the swap is manual, users should expect a processing period to receive their tokens. Currently, the Foundation plans to send tokens every Monday.
- Creditcoin will publish a full swap guide to help users through the process.
- Depending on the volume of swap requests, the Foundation may batch transactions in order to reduce transaction fee expenses.
Full announcement: https://creditcoin.org/blog/wctc-governance-proposal/