Today I Present to You
@SmokeOnChain, cuz
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All We Needed Was A Cross-Chain Credit Card
What if, all we needed to solve the cross-chain UX, was a system that lent you funds on whatever chain you are on without any delay and you could pay back later. Like a simple credit-card. We are all used to this UX in Web2. What's stopping us from building this in Web3?
Despite calling ourselves the disruptors of legacy finance tech, we sure have created many hurdles for crypto users to simply spend their money. In web2, if you have a simple credit-card, you can spend from it anywhere in the world. In contrast to this, using web3 rails today feels like crossing 7 seas and 11 rivers to simply pay for Farcaster yearly storage on Optimism. To pay $5. That's why we're,
Introducing Smoke
Smoke is a credit-based approach to solve the cross-chain UX problem. The idea is simple. You get your credit-card NFT, deposit some collateral on one chain, say Base, to instantly spend from it on any chain out there. It is a novel approach to the cross-chain problem.
And it makes total sense. Borrowing on DeFi is insanely cheap.
1. Instead of paying the swap/bridge fee Metamask charges (0.85%) on their wallet, you can borrow ETH for 2 months at 5% interest. AAVE's interest is just 2% btw.
2. For the fee Rabby charges (0.25%), you can borrow for 3 weeks.
3. If you spend $50 of ETH, and you pay back after 2 days, you incur an interest of just $0.01.
So, borrowing is really cheap on-chain. And we expect Smoke to be cheaper than 5%.
Before we look into the solution further, here's a brief on the status quo and the severity of the problem for comparison. You can also jump onto the next tweet or the website
@SmokeOnChain to try it out on testnet.
The Bridging Status Quo
Stargate, Across, deBridge, Synapse, etc., all of them aggregated through
@jumperapp &
@BungeeExchange is the best bridging experience the industry has ever seen. It is much much better than how it was 3 years ago, but it can & should get better, because we have competition now, the manlet chain. Some of the above bridges are pool-based and some are intent-based, but the user experience is always this:
1. Find which chain you have funds to spend on (biggest buzzkill, imo)
2. Deposit into a bridge on that chain, aka the source chain
3. Wait for bridging to happen (pretty fast these days tbh)
4. And then spend your funds on the destination chain
This is the best case scenario. It can go wrong in several ways...
1. What if there are no routes from your source chain to your destination chain?
2. Do you have enough gas on source and destination?
3. Bridge transaction is stuck or delayed, what do?
4. You have ETH on AAVE, you would have to go withdraw it to use it.
It has been painful for all of us. Not anymore.
The Smoke Experience
Smoke offers an instant and affordable way to spend your assets on any chain, while offering the upmost security, without any worries. Just like pulling money out of the smoke, just like black magic.
This UX is unheard of. It addresses most of the problems mentioned above:
1. No need to search for funds when you want to spend
2. No deposit transaction, and no waiting. It's as fast as the destination chain itself
3. No need to search for routes. Smoke either supports a chain or not. We aim to support all chains, even the manlet chain
4. Gas abstraction from day 1, no need to worry about gas, even on EOAs
5. It can be atomic as well, means, if you failed to mint an NFT, you never borrowed
6. You don't need to withdraw your ETH from AAVE to bridge. You can withdraw later to repay your CC bill
The main feature is that, when you are on a dApp, trying to spend your funds, you will have funds to spend.
- No one will come between you and that Onchain Summer hoodie you're buying on
@base.
- Or that NFT you are minting on Solana.
- Or that Fantasy Top card you're apeing on
@blast.
- Or depositing into
@HyperliquidX through
@arbitrum cuz you're down bad.
Everything will be instantaneous.
And we are not cutting corners either. It is a fully secure system.
How Does it Work?
The main unlock is the cross-chain lending protocol underneath, like ember for smoke. The protocol accepts some collateral on some of the supported chains and lends you ETH on any of the supported chains at a fixed interest rate. When you request to spend on any chain, an issuer approves your loan and you can spend it instantly.
You can pay back your bill after you use the dApp you originally intended to use. Or you can pay back end of the day, week or month. But unlike a traditional web2 credit card where you will start accruing absurd amounts of interest as penalty if you don't pay back end of the month, in this initial version of the Smoke protocol, you will be accruing a fixed interest at slightly above the market rate (a cross-chain premium) from the moment you spend. Nothing absurd.
It will be comparable to the bridge costs you are paying today, if you pay back at the end of the day/week. Minus the UX cost.
That's it. It is pretty straightforward. Why has this never been done before? Because the cross-chain lending protocols have always needed cross-chain messaging and this model doesn't.
Try It Out on Testnets Today!
It is not a protocol that's months away. This black magic is live for you to test out right now. Please join our Telegram/Discord or DM me to test it out. You don't need your own testnet ETH, you'll get it from us.
If you're someone who is excited about the cross-chain UX problem and want to work on this amazing protocol with me, please reach out. We will be tackling some of the most difficult problems together, learn and grow together. If you're such a person, read on below!
If you're an end user, there is nothing much apart from the nerdy stuff from here onward. Go get a testnet credit card right now! Here's a demo of what it feels like: