shade protocol review
Built on the Secret Network, Shade Protocol is a collection of interconnected DeFi applications that protect privacy. These apps include Stablecoins, governance, bonds, staking derivatives, insurance, synthetics, lending, DEXs, etc. 

All of the major Shade Protocol DeFi applications adopt the characteristics of programmable privacy by leveraging the technical strength of the Secret Network through secret contracts. Let’s discover more about this private protocol.

Shade Protocol is Private, Global, and Stable

Shade Protocol exists to bring privacy to DeFi. The applications on Shade Protocol will basically iterate on DeFi by not only emphasizing privacy but also the core principles of DeFi.

Shade Protocol aims to solve the following problems:

  • Transparent DeFi apps
  • Fractured application-layer ecosystems
  • Complex user experience across multiple primitives
  • Sovereign-currency pegged stablecoins
  • Governance scalability
  • Overcollateralized model inefficiencies
  • Stablecoin legal landscape

Transparency has been a huge problem in the mainstream adoption of blockchain. Everyone has access to anything. Users can trace transactions and access some other details. This, to some is a huge concern. It appears that Web3 needs privacy more than Web2.

Shade Protocol and Privacy

Secret Network launched its viewing keys architecture in response to the demands for privacy. A user can access their own encrypted balance and transaction history on the Secret Network blockchain by using viewing keys, which are cryptographic proof. This key basically grants you the right of access. So, governments can audit a user if the user decides to give their viewing key to the government or an agency. Interestingly, the user’s privacy is protected and the data stays encrypted on-chain for those without the key.

Shade Protocol leverages these viewing keys with its two main tokens, Shade ($SHD) and Silk ($SILK). SHD serves as Shade’s treasury, governance, and revenue share token. It is also used for bonds, transactions, governance proposals, staking, liquidity providing, and others.

SILK is Shade’s privacy-preserving stablecoin. It is pegged to different commodities and currencies, including gold, USD, Bitcoin, Euro, Yen, and more.

The SILK Stablecoin

Silk is made available by the SNIP-20 secret and fungible token standard, which also ensures that all Silk token holders can conduct transactions privately. SILK functions as a store of value, a unit of account, a standard of deferred payment, and a medium of exchange. Here are the features of SILK:

  •  Decentralized
  •  Modular
  •  Stable
  •  Fast
  • Privacy-preserving
  • Auditable
  • Hedge against global volatility
  • Algorithmic
  • Treasury backed
  • Staking backed
  • Index currency

Silk has three main stability mechanisms:

  • Overcollateralized Minting
  • Stability Pool
  • Bonds

Silk sustains its peg through a combination of staking and treasury engagement in peg arbitrage, as well as open-market algorithmic arbitrage. Lastly, Silk has anonymity enabled by default, making it a cutting-edge settlement solution for both large institutional investors and individual investors.

Shade has a couple of updates coming up. Check out its social media platforms for such informatiom.

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