The project
@WrappedXMR has created a bridge from Monero to Solana. This bridge allows people to deposit their XMR and get wXMR minted to their wallet on Solana. In addition to creating a bridge from Monero to Solana, this project created a prop AMM that makes the USDC/wXMR pair, allowing there to be liquidity for buyers or sellers of wXMR with only a small amount of wXMR tokens minted on Solana. Currently the spread on this prop AMM is very high at 2.5%, which is to encourage other market makers to deposit their XMR onto Solana and make markets at a more competitive rate. Currently the bridge assets are custodied by the
@WrappedXMR team.
Monero doesn't have outgoing view keys, so incoming transactions to a wallet can be proven, but outgoing transactions from a wallet cannot be proven with a view key. This makes it more difficult to prove that the bridge has the wXMR backed 1:1 with XMR on Monero. To prove that the bridge is 1:1 backed, the team does daily audits, sweeping every XMR UTXO to the bridge wallet and then publishing the keys to those transactions to prove that the bridge was able to spend that much XMR and send it to themselves. This process also burns some of the team's wXMR on Solana, since they have to spend a little XMR for the transaction fees to do this daily backing audit.
Currently there are just over 64 wXMR bridged to Solana using this bridge. The token has 9 holders, with the first token being bridged over on January 25th. The proprietary AMM has done a few hundred dollars worth of volume so far, mostly testing volume.
This is a very interesting project because in many jurisdictions XMR is a hard asset to acquire, and if wXMR gains sufficient liquidity it could be a powerful permissionless tool for people to gain access to XMR.