How does wrapping work and which trading pairs are likely to be added next?

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:

  1. 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?
  2. 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?
  3. 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.
  4. 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?
  5. Are there plans to add other wrapped ETH/BSC tokens in the future? Which ones are we likely to see next and why?
  1. (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)?
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1 Heritage… I think the ROT developer approached him directly about getting listed, and I’d guess the platform was part of 0xVipers inspiration for creating VIPER, if you browse thru the governance forum you’ll find the post where 0xViper commented that they “had alot of fun staking on ROT” Do I agree with adding the token simply because of heritage? Not really, but its a fun opportunity for people to actually do something with their ROT tokens, and that’s going to get us an influx of fresh faces that are already passionate about this kinda stuff. ROT is an awesome platform.
2 Bridge.harmony.one (the Horizon Bridge) will lock your ETH tokens, and then mint 1ETH on the harmony network I don’t fully understand how the mechanism works, and would love to know how/where the bridge is holding these. Is it a decentralized contract that also allows any user to burn 1ETH to get ETH?
3. You can bridge any kind of ERC20 token using the Horizon bridge, they will then be usable on the harmony network, you cannot deposit directly to an exchange unless it supports the wrapped tokens, you would have to bridge it back to get it to an ETH wallet. You can also bridge to/from BSC.
4. LINK’s just another token afaik, if you bridge it into harmony then it’s just like any other wrapped token, I’d say @0xViper should probably change it to be represented as 1LINK
any lurkers can make their votes below:

5. We’re definitely going to see more, it’s a matter of limited liquidity right now, can’t stretch it across too many pairs or the platform just won’t really work. This project came out March 8 2021, we are very much early adopters and we’re going to have to be patient with ironing out the kinks.
6. I’ve heard rumors that harmony was working on TheGraph integration, if this is true then we should see the fix for VIPER soon.

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Thanks, also I like the convention of prefixing foreign exchange tokens with 1 (makes it much more clear when there are hundreds of projects listed on the DEX), so my vote is for 1LINK.

When you bridge an ERC20 token to Harmony, you lock the token on the ETH network and mint a “1xxx” token at a 1:1 ratio. This process deploys a smart contract on Harmony which holds the key to the asset on ETH. When you bridge the asset back to the ETH network, it is unlocked on ETH and the “1xxx” token is burned. There is more happening behind the scenes with the Validators but that is the gist of it.

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So is the mechanism that parks ETH tokens and burns 1ETH tokens the Horizon Bridge itself? If I go to bridge.harmony.one page, I can burn a certain amount of 1ETH and in return the bridge will send equivalent amount of real ETH to an Ethereum address I specify?

Essentially yes. The Horizon Bridge is executing a smart contract which allows the exchange of the asset key between blockchain networks. It mints 1ETH to hold the key on Harmony and burns it when you bridge the key back to the ETH network. So if you want to bridge 1ETH back to ETH, the Horizon Bridge takes the key off the 1ETH token, uses the key to send ETH to your wallet on the ETH network, and burns the 1ETH token.

1LINK is very agreeable for me with that and any other upcoming known token.

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Clarity about the origin of the swapped multichain coins should be standard. IMO
ERC20:
Eth <-> 1Eth
BUSD <-> 1BUSD

BEP20:
BUSD(pegged) <-> bscBUSD

Poll results so far 7:1 1LINK:LINK

Unles the coin/toke already uses the number 1 in it’s name like 1INCH. In that case you get wrapped token like 11INCH :slight_smile: