(Disclaimer: The contents are subject to change without prior notice, and under no circumstances can it be used as evidence of legal responsibility for investment results. The information provided here does not constitute investment advice. If you have any questions, please contact the Stackswap team.)
Hello, Stackswap Community.
Progress Report
> Stackswap Dashboard (at block number 113,533)
> Stacks Accelerator Verified Tokens: 12
- Stackswap (STSW)
- Stacks (STX)
- Arkadiko Token (DIKO)
- Arkadiko Stablecoin (USDA)
- Miamicoin (MIA) v1
- Miamicoin (MIA) v1
- Newyorkcity Coin (NYC) v2
- Newyorkcity Coin (NYC) v2
- Lucid Bitcoin (lBTC)
- HireVibes (VIBES)
- ALEX Token (ALEX)
- auto ALEX (atALEX)
Stackswap Ecosystem
We would like to share some updates related to the bridge.
Currently, STSW tokens are listed on exchanges as ERC-20 tokens (Ethereum chain), while being traded on the Stackswap DEX as SIP-010 tokens (Stacks chain), requiring a need for a bridge to add interoperability between all STSW tokens. Accordingly, we have considered development and support of our own bridge, but due to the following points, this next stage remains on hold.
Stacks Foundation’s Bridge Policy
In order to develop a bridge, there must be sufficient discussion and support from the foundation or development community of the Stacks blockchain network. However, not all networks can or want to support this, especially since bridge development is technically difficult. As a result, development for a bridge is a difficult proposition without sufficient discussion or movement from the Foundation.
In particular, the Stacks Foundation’s lack of bridge operation policy entails various risks. For example, if Stackswap arbitrarily develops a bridge and the overall Stacks Foundation decides to move forward with providin ga new bridge while the Stackswap bridge is in service, operational risks may arise. In this case, Stackswap would have to proceed with migrating or withdrawing the tokens we supported for the bridge, potentially creating further issues. This situation can damage user trust, user funds, or more. This is not a scenario we want to entertain.
In addition, since a bridge ultimately means a connection between blockchains, it may be difficult to obtain the necessary resources or support to solve technical problems if the Foundation’s policy is not clear enough. This compromises the stability of the bridge, which can make it a target for hacking or disuse by users. Therefore, sufficient discussion and support from the Foundation and overall ecosystem are essential for the successful development and operation of the bridge. To do this, we must work closely with the Foundation and their resources to ensure the support that is necessary for the development of such a bridge.
Standardization Issues
ERC-20 and SIP-010 are token standards respectively adopted by the Ethereum and Stacks networks. Each network uses a different protocol and smart contract language. Because of this, ensuring compatibility and enabling interaction between the two networks is a complex task. Bridges must be developed considering the characteristics of the two networks, and many technical difficulties are involved in integrating them through one bridge.
This requires a deep understanding of each network’s capabilities, security, and transaction processing confirmations.
Token Management through Bridge Transfers
Transfers over bridges complicate the management of tokens. In particular, when a token moves out of its original network and onto another network, the token becomes difficult to trace, which can lead to management difficulties. Therefore, new management schemes or techniques based on the use of bridge may be required to address these issues.
We have maintained faith that 3rd party bridges would be provided appropriately as the Stacks blockchain grew. Also, we have held meetings and contacts some experiences companies and individuals on the topic. however, we have only heard that plans to support a bridge are still unclear due to various issues, so we have had to consider our own solutions.
As the Stacks network grows, so does the need for 3rd party bridges. It plays an important role in improving the accessibility and interoperability of the Stacks network, as well as increasing the overall liquidity of tokens in conjuction with the various platforms and projects being built on Stacks. However, current uncertainties are holding back this possibility.
We have expressed our concerns about bridge development through contacts with several development companies, Nonetheless, plans to support a bridge remain unclear due to a number of complex issues. While recognizing the need for a bridge, it is also clear that the implementation will not come easy.
Stackswap is considering our next steps. This is a necessary step for the development of our platform, whether or not supported by Stacks Foundation. In this process, we are trying to make the best decision while keeping all possibilities open.
We will be discussing this issue through a community vote.
The governance voting page will be opening within July, and the content of discussion is to collect community opinions on opening bridge support. The team will make an announcement when the function is open.
Next Steps and Options
- Wait for 3rd party Bridge support
- Stackswap’s direct development of the bridge (comes with a high possibility of requiring future token migration)
These are the two options laid out in front of us currently. We would greatly appreciate your input and feedback on our social channels.
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