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Wrapped Tokens

Introduction

The UMA workflow is specifically designed for wrapped tokens lacking an administrator, such as wETH wrapped with Lossless Protection. In cases where a report is generated without the integration of UMA, decisions rely solely on the Lossless team and the Committee, leading to a centralized decision-making process.

Recommendation

If relying on Lossless and Committee decisions suffices for the wrapped token, utilizing the LosslessWrappedERC20 smart contract is adequate. However, we strongly recommend integrating UMA by using the LosslessWrappedERC20Ownable smart contract and assigning the token admin to the Snapshot space provided by Lossless. In the Snapshot space, a new proposal will be generated, and all Lossless holders will have the opportunity to vote on the outcome of the report.

Usage

Generating a New Report

All reports can be created through the Lossless Platform. The malicious transaction can be identified and a report can be generated. For more details, refer to the Lossless Core documentation. Upon generating a report, a new UMA Snapshot proposal will be automatically created, and LSS holders will be able to vote and participate in the decision-making process regarding the legitimacy of the report.Deploying

Deploying Adminless Lossless Wrapped Token

  1. 1.
    Access the Lossless Wrapping Tool​
  2. 2.
    Connect the address with which you want to create a new wrapping contract
  3. 3.
    Go to Create​
  4. 4.
    Select Lossless Wrapped ERC20
    1. 1.
      Fill the underlying token (ERC20 token address)
    2. 2.
      Fill the delay
  5. 5.
    Deploy!
Now you can start wrapping and unwrapping the underlying token with this contract.
Please bare in mind that this kind of token, on a report event, will only have the votes of the Committee and the Lossless Team. If you want to add a third decentralized party to the voting, such as UMA, you need to deploy an Ownable Wrapped Token and transfer the adminship to the oSnap module.

Deploying Ownable Lossless Wrapped Token

  1. 1.
    Access the Lossless Wrapping Tool​
  2. 2.
    Connect the address with which you want to create a new wrapping contract
  3. 3.
    Go to Create​
  4. 4.
    Select Lossless Wrapped ERC20 Ownable
    1. 1.
      Fill the underlying token (ERC20 token address)
    2. 2.
      Fill the delay
    3. 3.
      Fill the Timelock period
    4. 4.
      Fill in the recovery Admin
  5. 5.
    Deploy!
Now you can start wrapping and unwrapping the underlying token with this contract.
If this is a token that should have no admin, such as wrapping ETH, DAI, etc, adminship should be transferred to the oSnap module.

Wrapping tokens

ERC20

1. Search for the wrapping contract of the ERC20 you want to wrap.
2. You will be greeted with a new dashboard containing information about your position with the ERC20 and the wrapped ERC20 as well as some general information. At the bottom you will be able to input the amount and then click on Wrap.
3. Approve and sign the transaction with the Metamask prompt and wait for the transaction to be mined. You will see your wrapped token balance updated.

ETH

1. In order to wrap ETH got to the Lossless Wrapping Tool and click on “Wrap your ETH“
2. You will be prompted with a small Dashboard showing your ETH, wETH amount and the Lossless Wrapped ETH balance. If you have available wETH you can choose to use the existing ones, otherwise enter the amount to wrap.
3. You will be prompted with a couple of approvals for transactions as the ETH need to be wrapped into wETH and finally to LosslessWrapped ETH. Once that’s done, you’ll be shown the updated amounts.
​

Unwrapping Tokens

ERC20
1. Access the Lossless Wrapping Tool unwrapping section and search for the address of the wrapping contract.
2. You will be prompted with a dashboard with relevant data including your wrapped ERC20 balance. Input the amount you want to request the unwrap and click the button below.
3. After the transaction is mined, you will be shown the date of when the tokens will be available to withdraw. Once that date is reached, you can come back to the same dashboard and complete the withdraw.
Alternatively you can cancel the Unwrapping request if needed.
ETH
1. Access the Lossless Wrapping Tool unwrapping section and click on “Unwrap your lwETH“
2. You will be prompted with a dashboard with relevant data including your wrapped ERC20 balance. Input the amount you want to request the unwrap and click the button below.
3. After the transaction is mined, you will be shown the date of when the tokens will be available to withdraw. Once that date is reached, you can come back to the same dashboard and complete the withdraw.
Alternatively you can cancel the Unwrapping request if needed.

Generating a New Report

Most reports can be created through the Lossless Platform. The malicious transaction can be identified and a report can be generated. For more details, refer to the Lossless Core documentation.
Upon generating a report, a new UMA Snapshot proposal will be created, and LSS holders will be able to vote and participate in the decision-making process regarding the legitimacy of the report.

Generating a New Report through Etherscan

In case the Wrapped Token hasn’t been added to the Lossless Platform yet, the alternative is using Etherscan to create a new Report.
  1. 1.
    Approve the Lossless Reporting contract to transfer the necessary LSS tokens for the report by going to the approve function.​
  2. 2.
    Fill in the required parameters where:
    1. 1.
      “spender“ refers to the Lossless Reporting contract address (0x38D40f5c8375F84C5B90bc460A94a436D09133fB on Mainnet)
    2. 2.
      “amount“ is the amount of tokens needed for the Report (2500 LSS on Mainnet).
  1. 3.
    Access Etherscan through the following link. It will take you directly to the Report Function on Mainnet.
  2. 4.
    Fill both inputs where
    1. 1.
      “_token“ is the address of wrapped token that has suffered an incident
      1. 1.
        “_account“ is the address of the alleged malicious actor
    ​
    Now the report has been successfully created and all functionality over the report is available through the Lossless Platform.

Participating in the voting process for Adminless Tokens

After the new report has been created a new proposal should be visible over at the Lossless DAO Snapshot Space​
If you’re holding LSS tokens you will be able to participate in the decision making process. Starting from the information present on the proposal you will be able to do your own research and determine the validity of the report.
Once the voting period of 18hs has ended you will be able to see the result:
Additionally everyone will have the ability to execute the transaction that will effectively cast the vote on the report.
In order to execute the transaction you will be requested a bond of 1000 USDC that will be refunded if the decision hasn’t been disputed at the UMA Optimistic Oracle Dashboard.

Disputing a Community Vote

In the case a user thinks that the outcome of the proposal isn’t correct he will be able to Dispute the vote over at the UMA Optimistic Oracle Dashboard. There will a Liveness period of 18hs where the proposal can be disputed otherwise it will be settled as valid.
Over the Dashboard you will be able to select the new proposal and assert it as False in order to start the dispute.
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Last modified 14d ago