NEAR - 16. Secrets of the NETH-erworld

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    conclusion

    NETH is a smart contract developed on the NEAR Protocol blockchain that enables cross-chain compatibility between NEAR and Ethereum. By allowing NEAR-based tokens to be wrapped into ERC-20 compliant tokens, NETH provides NEAR-based dApps with access to additional functionality provided by Ethereum-based tokens, and enables NEAR users to interact with the larger Ethereum ecosystem using familiar tools such as the MetaMask wallet.

    While there are potential risks and challenges associated with NETH, including centralization risk, potential security vulnerabilities, complexity, and network congestion, the potential benefits it provides to the NEAR and Ethereum ecosystems are significant. Overall, NETH is an important development in the ongoing efforts to facilitate cross-chain interoperability between different blockchain networks, and it will be interesting to see how it continues to evolve and be adopted in the future.

    1. NETH uses a technology called a "hashlock" to ensure the security and atomicity of cross-chain transfers. A hashlock is a cryptographic mechanism that prevents the release of funds until a specific condition is met, ensuring that the transfer of assets is either fully completed or not completed at all.
    2. NETH enables the transfer of assets between NEAR and Ethereum blockchains in a trustless and decentralized manner. This means that there is no need for intermediaries or third-party services, reducing the risk of fraud, censorship, or downtime.
    3. NETH allows developers to create cross-chain dApps that can leverage the features of both NEAR and Ethereum. For example, developers can use NEAR's fast and low-cost transaction processing capabilities for on-chain interactions and Ethereum's smart contract capabilities for off-chain interactions.
    4. NETH is part of the growing trend of blockchain interoperability, which aims to create a network of interconnected blockchains that can communicate and share data seamlessly. This can lead to the creation of a more decentralized and inclusive internet, where different blockchain platforms can coexist and collaborate.
    5. NETH is open-source software, which means that its code is publicly available and can be audited and improved by the community. This ensures transparency and accountability, and encourages innovation and collaboration in the blockchain space.

    In summary, NETH is a promising technology that enables cross-chain compatibility between NEAR and Ethereum blockchains, providing developers with greater flexibility and interoperability between different blockchain ecosystems. Its use of hashlocks and trustless, decentralized transfers can enhance security and reduce reliance on intermediaries. Moreover, its open-source nature and contribution to the blockchain interoperability movement can promote transparency, innovation, and collaboration in the blockchain space.

    Analyst : : Drsimon

    DISCORD :: hony.forto#9895

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    Amount (USD) of daily swapped tokens in terms of input tokens

    The chart below shows the Amount (USD) of daily swapped tokens in terms of input tokens May 11, 2022 and JAN 14, 2023 have the highest volume of swap transactions. You can see the swapped tokens according to the daily volume

    Total amount of swapped tokens in terms of output tokens

    The chart below Total amount of swapped tokens in terms of input tokens is showing According to this chart, WNEAR has the largest volume of swaps You can see the swapped tokens according to the volume

    Total amount (USD) of swapped tokens in terms of output tokens

    The chart below Total amount (USD) of swapped tokens in terms of input tokens is showing According to this chart, WNEAR has the largest volume of swaps and the volume of swaps was more than 273 billion dollars. You can see the swapped tokens according to the volume in USD

    Daily swaps/swappers in terms of input/output tokens

    Daily swaps in terms of input tokens

    The chart below shows Daily swaps in terms of input tokens

    On February 19, 2022, wnear has had more than 20,000 swaps

    In the new year, the number of input tokens for swaps has increased

    Daily swaps in terms of output tokens

    The chart below shows daily swaps in terms of outgoing tokens

    On February 19, 2022, the number of swaps was more than 20,000 In the new year, the number of outgoing tokens for swaps has increased

    Daily swappers in terms of input tokens

    The chart below shows the daily swappers in terms of input tokens

    On February 20, 2022, the number of swappers was 6732

    Daily swaps in terms of output tokens

    The chart below shows the daily swappers in terms of output tokens

    On February 20, 2022, the number of swappers was 6732

    Total swaps and swappers in terms of input/output tokens

    Total swaps and swappers in terms of output tokens

    Total swaps and swappers in terms of output tokens are shown in the chart below

    USDT had the highest number of swaps and swappers

    USDC and JUMBO are ranked second and third respectively in terms of the number of swaps

    Percentage of swaps/swappers in terms of input/output tokens

    The charts below are shown in percentages and are for better understanding of the above content

    Amount (USD) of daily swapped tokens in terms of output tokens

    The chart below shows the Amount (USD) of daily swapped tokens in terms of input tokens May 11, 2022 and JAN 14, 2023 have the highest volume of swap transactions. You can see the swapped tokens according to the daily volume

    Total amount output tokens in terms of USD

    The chart below shows the total amount of output tokens in terms of USD

    According to this chart, USDT, USDC, WNEAR, ETH have the largest volume of swaps(output tokens)

    You can see the swapped tokens according to the volume in USD

    Percentage of input/output tokens that are swapped(amount usd)

    WNEAR has accounted for more than 85% of all input tokens for swaps

    USDT has accounted for more than 25% of all output tokens for swaps

    You can also see the percentage of top 10 output tokens that are swapped and other information about the percentages of input and output tokens.

    Introduction

    NETH is a smart contract that was developed on the NEAR Protocol blockchain to enable compatibility between NEAR and MetaMask. MetaMask is a popular Ethereum wallet that allows users to interact with Ethereum-based decentralized applications (dApps) and send and receive Ethereum (ETH) and other Ethereum-based tokens.

    With the integration of NETH, NEAR users can now connect their NEAR wallets to MetaMask and access NEAR-based dApps directly from their MetaMask wallets. This is a significant development for NEAR, as it opens up new possibilities for NEAR-based dApps and provides a seamless user experience for users who are already familiar with MetaMask.

    The NETH smart contract essentially acts as a bridge between the NEAR and Ethereum blockchains. When a NEAR user wants to use a dApp that is built on Ethereum and is compatible with MetaMask, they can connect their NEAR wallet to MetaMask using NETH. NETH then converts the NEAR tokens into Ethereum-based tokens, which can be used within the dApp.

    NETH uses a process called token wrapping to convert NEAR tokens into Ethereum-based tokens. Token wrapping is a technique used to create a one-to-one correspondence between tokens on different blockchains. In the case of NETH, NEAR tokens are wrapped into a new token called wNEAR, which can be used within Ethereum-based dApps.

    Overall, the integration of NETH with MetaMask is a significant milestone for NEAR and highlights the potential of cross-chain compatibility between different blockchain networks. It also provides a streamlined user experience for users who can now access NEAR-based dApps directly from their MetaMask wallets.

    Everything about NETH

    NETH is a smart contract developed on the NEAR Protocol blockchain that facilitates cross-chain compatibility between NEAR and Ethereum. The smart contract allows NEAR-based tokens to be wrapped into ERC-20 compliant tokens, which can be used on the Ethereum blockchain.

    NETH works by implementing a series of contracts that are designed to handle the conversion of NEAR-based tokens into ERC-20 tokens. This is done through a process called token wrapping, which allows NEAR-based tokens to be transferred to and from Ethereum-based tokens.

    The process of token wrapping involves locking the NEAR tokens in a contract on the NEAR blockchain and issuing an equivalent amount of wrapped tokens on the Ethereum blockchain. This wrapped token is then transferred to the Ethereum blockchain, where it can be used within Ethereum-based dApps.

    When the wrapped tokens are no longer needed on the Ethereum blockchain, they can be unwrapped and converted back into NEAR-based tokens. This process is done in reverse, with the wrapped tokens being locked in a contract on the Ethereum blockchain and the equivalent amount of NEAR tokens being released on the NEAR blockchain.

    The use of NETH allows NEAR-based dApps to access the large and growing ecosystem of Ethereum-based dApps and services. It also allows NEAR users to interact with Ethereum-based dApps and services without having to use a different wallet or blockchain.

    NETH was developed by the NEAR Protocol team and is an open-source project that is available on GitHub. It is one of several cross-chain solutions being developed to facilitate interoperability between different blockchain networks.

    How NETH works

    NETH enables Ethereum (ETH) addresses remote control of paired NEAR accounts via signing transactions.

    NETH is deployed on the NEAR blockchain and enables direct interaction with NEAR decentralized applications (DApps) using Ethereum wallets like Metamask.

    The NETH smart contract works as follows: it verifies the signature sent from the Ethereum account, recovers the Ethereum public address if verification is successful, and executes the transaction as long as it matches the address from the initial NETH setup — according to Proximity Labs.

    Source Proximity Labs

    This is NETH: Unlocking Ethereum Wallets on NEAR Native

    While NEAR can support EVM runtimes, like Aurora, NEAR's native runtime is not EVM-compatible. This creates an onboarding barrier to users accustomed to their Ethereum wallets, who have to relearn everything when entering a new chain. NETH sets out to solve one thing: allow users to utilize their Ethereum Wallets to interact with NEAR Native dApps.

    NETH is a smart contract that enables your Ethereum account to sign transactions and remotely control your paired NEAR account, allowing you to directly interact with NEAR dApps using your Ethereum wallet, such as MetaMask.

    Deployed on the NEAR side, NETH allows your paired NEAR account to accept transaction details (payload) and the signature from your paired Ethereum account. The contract:

    • verifies the signature from the Ethereum account,
    • recovers the Ethereum public address and,
    • executes the transaction if it matches the address from the initial NETH setup.

    This means that NEAR is now accessible through the most widely used non-custodial wallet in crypto, removing the entry barrier for EVM users to enter the NEAR Native ecosystem. Also, NETH accounts can handle NEAR transactions with multiple receivers and multiple actions per receiver, making a NETH Account capable of using the most advanced NEAR dApps.

    Setup, Usability, and Security

    NETH comprises a NEAR account with a deployed smart contract and the NEAR Wallet Selector plugin. Some of its key features are as follows:

    • Everything is open-source. The repo for the Wallet Selector plugin and setup frontend can be found here.
    • The entire process is non-custodial: you are in charge of your keys the whole time.
    • The NETH Account setup flow is entirely client-side: it runs on your computer only and is not communicating with a server or third party.
    • We worked with OtterSec to audit the contract and various user journeys for potential risks, the report of which can be found here.
    • NETH is ***whitelisted ***on NEAR’s Wallet Selector, which smoothens the dApp integration process. Projects on NEAR only need to integrate the Wallet Selector and NETH will show up as one of the default options. The repo for the Wallet Selector can be found here.

    As with any transaction on NEAR, there are some fees that go to validators (not affiliated with Proximity) to fund the wallet initially. Currently, the creation of a NETH account is 0.5 $NEAR, which is used to pay for the account name, access keys, and contract storage.

    Figure 2. How NETH works and interacts with MetaMask

    Note that the setup process is not without risks. Should your device suffer a catastrophic failure during the setup process resulting in a loss of access to the local storage of the website, you may not be able to recover the funds used to set up the NETH Account. This is why we decided to write the NETH Contract as a no-std Rust contract deployed on NEAR since it only requires 0.5 $NEAR to create the account and deploy the NETH Contract.

    Once set up, there is also an option to disconnect the account and walk away with a seed phrase to a NEAR Native account. From there you can use any NEAR Wallet by importing the seed phrase.

    Using dApps is as simple as signing transactions using your Ethereum Account (e.g., through MetaMask or MetaMask mobile) as you normally would. We made sure to include headers, receiver IDs, and size information in the transaction payload to increase legibility and security and to minimize the chances of malicious tampering with transaction details.

    Figure 3. Using apps with NETH: you connect to your NEAR app and the Wallet Selector Plugin pops up. Then you select NETH and start using MetaMask directly to sign transactions.

    Bringing MetaMask and other Ethereum wallets to NEAR native combines the full potential and capabilities of the NEAR blockchain with the familiarity, user experience, and battle-tested track record of Ethereum’s wallet ecosystem.

    Importantly, although we use MetaMask as an example, NETH works for most Ethereum wallets! This is because NETH is a smart contract entirely on the NEAR side, which uses Ethereum accounts (whether it be MetaMask or not), and is not an official integration by the MetaMask team.

    Future Work

    With the core functionality live, these are the next steps for NETH that we are currently exploring:

    • An improved onboarding experience, with a cost reduction in the amount needed to fund the account (currently 0.5 $NEAR), which can be achieved in several ways:
    1. A subsidized faucet for account creation based on certain criteria, such as bridging a non-trivial amount from Ethereum or other networks;
    2. Using bridged funds via the Rainbow Bridge to swap and pay the 0.5 $NEAR (or less);
    3. Initial funding using NEAR’s Moonpay integration; and
    4. Zero balance accounts on NEAR, which would eliminate the need for initial set-up costs altogether.

    For now, feel free to reach out to the NEAR community if you do not have access to any NEAR tokens or explore other potential opportunities for funding, such as NEAR Crowd.

    • Tighter integration with bridging assets as a feature within the Wallet Selector plugin, embedding the Rainbow Bridge into other dApps.
    • More dApp integrations.
    • UI/UX improvements.
    • Educational materials and guides for users and devs.

    Figure 4. NETH as an option on Ref Finance's Wallet Selector interface

    Today, you can find NETH live on NEAR’s Wallet Selector plugin on dApps such as Ref Finance and Burrow, with many more to come. Watch the demo and start using NETH here!

    About Proximity

    Proximity is a research and development firm supporting the NEAR DeFi ecosystem through investments, developer support, open-source software, and advisory services. The Proximity team consists of former members of the NEAR Foundation, Binance, Consensys, Facebook, and more. It has advised numerous DeFi projects contributing to both NEAR and Aurora’s recent success.

    \n

    Advantages and disadvantages of NETH

    Here are some potential advantages and disadvantages of NETH:

    Advantages:

    1. Cross-chain compatibility: NETH enables cross-chain compatibility between NEAR and Ethereum, which allows NEAR-based dApps to interact with the larger Ethereum ecosystem and vice versa.
    2. Enhanced functionality: By enabling NEAR-based tokens to be wrapped into ERC-20 compliant tokens, NETH allows NEAR-based dApps to access additional functionality provided by Ethereum-based tokens.
    3. Improved user experience: The integration of NETH with MetaMask provides a seamless user experience for users who are already familiar with the MetaMask wallet.
    4. Open-source and community-driven: NETH is an open-source project that is being developed by the NEAR Protocol community, which means that anyone can contribute to its development.

    Disadvantages:

    1. Centralization risk: The token wrapping process requires a centralized custodian to hold the locked NEAR tokens, which creates a potential point of failure and centralization risk.
    2. Potential security vulnerabilities: Any smart contract, including NETH, is susceptible to potential security vulnerabilities that could be exploited by malicious actors.
    3. Complexity: The token wrapping process and cross-chain compatibility can be complex and difficult to understand for non-technical users.
    4. Network congestion: If there is high demand for token wrapping services, it could result in network congestion and higher transaction fees.

    Overall, NETH offers significant potential benefits for NEAR-based dApps and the larger blockchain ecosystem by enabling cross-chain compatibility and enhanced functionality. However, like any new technology, it also comes with potential risks and challenges that need to be carefully considered and addressed.

    Total swaps and swappers in terms of input tokens

    Total swaps and swappers in terms of input tokens are shown in the chart below

    WNEAR had the most swaps and swappers

    AURORA and STNEAR are ranked second and third respectively in terms of the number of swaps

    Amount (USD) of daily swapped tokens in terms of input/output tokens

    Methodology

    1. Introduction

    2. Everything about NETH

    3. Advantages and disadvantages of NETH

      \

    4. Daily swaps/swappers in terms of input/output tokens

      • Daily swaps in terms of input tokens

      • Daily swaps in terms of output tokens

      • Daily swappers in terms of input tokens

        \

      • Daily swappers in terms of output tokens

        \

    5. Total swaps and swappers in terms of input/output tokens

      \

      • Total swaps and swappers in terms of input tokens

      \

      • Total swaps and swappers in terms of output tokens

      • Percentage of swaps/swappers in terms of input/output tokens

        \

    6. Amount (USD) of swapped tokens in terms of input/output tokens

      \

      • Amount (USD) of daily swapped tokens in terms of input tokens

      • Amount (USD) of daily swapped tokens in terms of output tokens

      • Total amount of swapped tokens in terms of output tokens

      • Total amount (USD) of swapped tokens in terms of output tokens

      • Total amount output tokens in terms of USD

      • Percentage of input/output tokens that are swapped(amount usd)

        \

    7. conclusion

    db_img