Critical - Deceptive Naming of Wrap / Unwrap vs Cross-Chain Purchase

Stacks Testnet: ST37N35P4903CB8S91SHHYYQ3Q44Q3HCJS8RD4TKW
Stacks Mainnet: SP37N35P4903CB8S91SHHYYQ3Q44Q3HCJSBP8DCVF
Discord: NuriKols#4750
Telegram: @ WaseemK

USDC is a stable coin on the ETH chain.
xUSD is (fictional) debt based coin that does not have actual 1-1 value with USDC.

It can be detrimental to the Stacks brand and name of xUSD and BRIDGE if users were to find out that they were swapping under the guise of Wrap and Unwrap, a fiat collateral based USDC token for a token that does not have similar backing.

Technically, the process is not a bridge of USDC but rather a cross chain purchase of xUSD.

Users would need to understand how xUSD is created and what they are actually swapping their fiat for.

In a way, you are making yourself reliant on Arkadiko because users will expect a 1-1 conversion from you. However, if Arkadiko goes down, You are the one who called it a 1-1 wrap/unwrap and you will be held as obliged to ‘foolfill’ your word.

We’ve seen stable coins go down before (Luna etc.). It is highly advisable to not make your platform reliant or to make commitments based on the promises of other platforms.

You should integrate their services whilst keeping very far from their promises.

(No offense to Arkadiko. just advice for Alex).

@mike_bear_1

What do you think?

Hi W1K,

Werner has already written back on discord:

Thanks @werner.btc

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For convenience here is a screen capture:

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Thanks guys, yes that was my mistake as explained on Discord.

If I was able to have been deceived through a simple google search, I believe many others will too.

This needs to be clarified somewhere or called something new.

Usually any bad publicity regarding a stablecoin is enough to make a person turn away, because the market moves so fast, they don’t have time to verify and authenticate.

Hi @W1K , thank you for pointing this out, and I can see how others can be led to a similar, but wrong, conclusion about xUSD. We will assist and address our users’ concerns, but think this is first and foremost something Tokensoft/Wrapped should own and address, so we will communicate to them with your feedbacks.

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In the meantime, xUSD is backed 1:1 with USDC. You can see its supply and reserve real-time here: Open Startup / Metrics.
If you click on the numbers, you can verify the raw numbers from which the supply and reserve are calculated. Supply uses on-chain data from https://api.stacksdata.info/v1/coins. Reserve is held in a Safe Multisig (GnosisSafeProxy | Address 0x1b1010e2e38bb68afd4cb1a78b3cf1b88bb71960 | Etherscan).
Thank you.

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Hello, wbnns from the Tokensoft / Wrapped team here – thanks for the feedback and apologies this wasn’t more clear via the SERPs. :smile:

Just wanted to check-in and confirm as others have mentioned, that yes, it’s USDC wrapped 1:1 onto Stacks (not a cross-chain purchase/sell). It can also be unwrapped through Stacks Bridge back to USDC on Ethereum (1:1). It’s fully bidirectional.

For every 1 xUSD in circulation on Stacks, there is 1 USDC in reserve. This can be fully verified on-chain via the links that @fiftyeightandeight provided. :+1:

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