Hi, I posted this as a question on ViperSwap reddit (https://www.reddit.com/r/ViperSwap/comments/mk0nx0/how_does_wrapping_work_and_which_trading_pairs/) and another member suggested asking on the governance forums instead for a quicker/better response.
Basically, I invested into Viper because I’m very bullish on the Harmony ecosystem, however, I must admit that I don’t completely understand Viper’s future direction yet. Here are the questions I asked on Reddit:
- Why was ROT token chosen as one of the first to port? It seems to be a relatively small project with little utility. To me it just seems like an intentionally setup impermanent loss scenario. Why would the founders do this?
- What does it take to wrap ETH/BSC tokens on your end? I’m not familiar with the wrapping process but my understanding is that every representation of an ETH in Harmony ecosystem has an ETH parked elsewhere backing it? Who is guaranteeing this backing, is it a mechanism or some authority? Is there an actual ETH on the other end or is Viper just taking ChainLink’s price data and generating a virtual ETH out of thin air that’s not guaranteed to be backed by an ETH?
- Similar to above question, what’s the process of converting a 1ETH to a real ETH, and would the process differ for other tokens (i.e. 1USDT, 1USDC, 1DAI, etc.)? Because if we can benefit from Harmony’s cheap fees and high speed to reduce the cost of moving stablecoins between exchanges, that would open up a lot more doors.
- Is ChainLink’s representation similarly wrapped? It doesn’t seem to have a 1 in front of it? Is there a significance to this or was the symbol meant to be 1LINK as well? Or is ChainLink doing something different to be represented natively on Harmony?
- Are there plans to add other wrapped ETH/BSC tokens in the future? Which ones are we likely to see next and why?
- (this I haven’t asked on Reddit, but something I’m curious about as well) A few posts on Reddit explained ViperSwap’s issue with being posted on CoinGecko and CoinMarketCap requiring TheGraph integration, which Harmony didn’t seem to support before. Am I understanding correctly that this support has been added on Apr 2 (https://twitter.com/harmonyprotocol/status/1378123615623737346?ref_src=twsrc^tfw|twcamp^embeddedtimeline|twterm^profile%3Aharmonyprotocol|twcon^timelinechrome&ref_url=https%3A%2F%2Fmessari.io%2Fasset%2Fharmony%2Fnews)?