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MYST Liquidity Engagement Campaign Launches on Uniswap

Thinking about providing liquidity for MYST but don’t want to get hit by impermanent loss? We have a solution!

Mysterium Network is excited to present the MYST Liquidity Engagement Campaign, which rewards liquidity providers for providing liquidity to the MYST/ETH pair on UniSwap.

Even though we are not able to reduce the risk from impermanent loss that occurs due to the price fluctuation, we can support our liquidity providers with rewards in MYST tokens

MYST Liquidity Engagement Campaign explained

In the video below, we break down how the MYST liquidity campaign on UniSwap will work and how rewards are calculated. You can read further in the blog post for more details as well.

First things first, what is impermanent loss?

Impermanent loss happens as you add liquidity to a liquidity pool, and the price of your deposited assets fluctuates. The bigger the change, the more exposed you are to impermanent loss.

Impermanent losses can be counteracted by trading fees, as is the case with UniSwap.


What is UniSwap?

Uniswap is a DeFi protocol which allows for the exchange of tokens in a decentralised manner. While we are gearing up towards a listing on a tier one exchange in 2021, UniSwap remains a primary gateway into the MYST ecosystem on Ethereum. 

As mentioned before, impermanent losses can be counteracted by trading fees. UniSwap charges 0.3% for every trade. This goes directly to UniSwap liquidity providers. Now for the cherry on top.

How does the MYST Liquidity Engagement Campaign reduce your risk and give you more rewards?

We are rewarding each participant in the MYST liquidity engagement campaign based on the amount of funds supplied and the duration for which liquidity is locked in the UniSwap protocol.

Liquidity engagement MYST

MYST liquidity engagement campaign details: 

Start Date

Monday, 5th January 2021, 2 PM UTC.

End Date

We plan to run the MYST liquidity engagement campaign on UniSwap for 3 months, until the 3rd April 2021.

Our goal with this campaign is to double MYST liquidity on UniSwap. We will review the success of this campaign after 4 weeks on the   4th February 2021. Following this, we will evaluate engagement and feedback from the Mysterium community.

Should we see uptake from the wider Mysterium community during the first month, we will prolong the campaign for the next two months.

How are rewards calculated?

When you provide liquidity on UniSwap, UniSwap mints liquidity tokens proportionate to the added liquidity. This allows us to calculate each liquidity provider’s engagement. 

Our program analyses UniSwap liquidity token distribution at each block and proportionally distributes tokens to liquidity providers participating in the campaign. 

MYST liquidity campaign uniswap

MYST tokens will be distributed as rewards to liquidity providers for the MYST/ETH pool on UniSwap V2 each week. 0.15 MYST tokens will be allocated to each Ethereum block. This will vary alongside price fluctuation.

We have allocated up to 30,000 MYST for the month of January. This is subject to change depending on number blocks per period and price of $MYST.

Minimal time tick on blockchains usually is one block, which on Ethereum blockchain occurs every 13-15 seconds. Approximately 6,700 Ethereum blocks are mined each day. This means that liquidity providers will divide 1,005 MYST tokens per day between themselves based on how much each of them has contributed to the liquidity pool. 

You can use the following formula to calculate your potential rewards:

Your UNI-V2 pool tokens * 0.15 / total supply provided by liquidity providers in campaign

There is no minimum or maximum amount of funds required to participate. Every liquidity provider will be awarded proportionally. We reserve the rights to change the reward size as the program matures.

How do you get involved and earn MYST for providing liquidity?

To stake and begin earning MYST liquidity mining rewards:

  1. You must deposit an equal value of MYST and ETH tokens to the MYST/ETH pool on Uniswap V2. 
  2. After successfully contributing your cryptocurrencies, you will receive UNI-V2 pool tokens representing your share of the MYST/ETH liquidity pool. 
  3. You can monitor the size of the pool and your share of it here. We are excluding Mysterium Network’s share of liquidity in how rewards are calculated. 
  4. You can add or remove liquidity at any time as our system will track the liquidity pool within each Ethereum block. Every time there is a change of distribution in the pool, reward proportions will be adjusted accordingly.

For example:

You provide $10,000 worth of liquidity for a week while the total liquidity pool is $200,000 (excluding liquidity provided by the Mysterium team).
Your share of provided liquidity is 5%; therefore, you will receive 5% of all token rewards distributed during the week.
The total reward amount for the week is 7,035 MYST tokens, so your share of 5% will result in 351.8 MYST tokens.

How are rewards distributed?

Each block earning is summarized. You can claim your earnings at any time using the claim button on our liquidity campaign leaderboard on liquidity.mysterium.network.

Alternatively, we will airdrop the rewards once per week due to high Ethereum transaction costs to the liquidity providers that earned more than 500 MYST tokens.

How can you track and claim your rewards?

Want to track how much you’ve earned in the MYST liquidity engagement campaign? Looking to claim your rewards? Check out our step by step help guide.

Why invest in growing MYST liquidity pool on UniSwap?

We are focused on building a healthy MYST ecosystem so that community members can enter large positions with as small a price slippage as possible. For this we are seeking to create incentives for the wider Mysterium community to benefit from providing liquidity on UniSwap. This is the first of many campaigns like this to come. 

 

Join us in making the world a more open place. 

Mysterium Network is at its core a grassroots project, run for the people, by the people. We’ve seen more than 100x growth within our network in 2020. 

Now more than ever it is pertinent that we seek community based incentives to grow a healthy MYST ecosystem that matches our growth in users and node runners. 

We’re excited to meet our future MYST liquidity providers. Get started now.

Questions? Chat directly with our core team on discord, or tweet at us.  

 

Mysterium Network Product Updates – November 2020

Mysterium Network is building a decentralised VPN. Our global network is open, permissionless and distributed. Last year we focused on finetuning our node software, and understanding the dynamics of incentivised networks. This year, we’re focusing on building censorship-proof applications. If you haven’t already, please make sure to download Mysterium VPN for Windows, Mac and Android. Let us know what you think on النقاش or تويتر.

The past month has seen us charge full steam ahead with our Testnet 2.0 upgrade. With this upgrade comes some exciting new features and functionalities for both users and node runners within the network.

Check out these latest product updates;

 

Testnet 2.0 launched (beta)

We deployed the newest version of our smart contracts onto the Goerli testnet.

This updated Testnet 2.0 (version v0.41 of the Mysterium app) is being tried out by a small group of beta testers. Based on their feedback and experiences, 2.0 should be released for everyone else very soon.

With this upgrade, node registration flow has changed. Providers will get free registration with zero stake (while still on testnet) and should keep their same Testnet 1.0 identity. For providers, any earned settlement is two times cheaper than before.

These new smart contracts are also using a new version of MYSTT token. It’s essentially the same as our real MYST token, but on Goerli testnet. It has 18 zeros after comma (instead of 8 ), which required us to refactor all payments-related code to account for micropayments correctly.

 

Top up with your crypto of choice

All Android beta testers can now top up their Mysterium VPN balance using various cryptocurrencies (other than MYST), such as BTC, LTC, ETH, Dai and more! This will soon be available to our entire community of Android users. Note you’ll need to download or update to the latest version of the app (v0.40+) when available.

This functionality is supported by an upgraded Hermes protocol, with our micropayment hub now supporting multiple chains.

 

Unblocked in China

We’ve been working hard to reverse the ban of Mysterium VPN in China. The first iteration of our unblocking is done. Those who start using Testnet 2.0 apps (node v0.40+) will be able to access Mysterium from China!

 

Cleaner UI

We updated the Web UI so it is far more stable, with fewer glitches.

We found and fixed lots of bugs found during ALPHA testing in preparation of our upcoming node release.

We also created user-friendly consumer CLI commands. Now it’s much easier to use Mysterium VPN for advanced Linux users and on servers.

 

Matic x Mysterium 

We started working on our integration with Matic Network. Most of our infrastructure components are ready for Matic, so now we’re working on building the Matic<>Ethereum bridges needed before its public release.

 

My.Mysterium.Network updates

We updated and deployed multiple versions of MMN, so users of Testnet 1.0, Testnet 2.0 and the upcoming betanet could get access to an aggregated node dashboard. The Testnet 2.0 version of MMN will look a little different than yje current version, and we hope it will solve a couple of usability problems we had before.

Nodes can also store beneficiary (payout) wallet address on the Ethereum blockchain, instead of a database. The new MMN has been adapted so it can be used for bounty payments.

We also discovered some node runners who were cheating the system. We therefore started a blacklist so they could not participate in any future bounty program.

Want to get involved in Mysterium Network today?

Mysterium Network is a decentralized VPN, with a growing global residential IP node network. There are versions for  ذكري المظهرMac and Windows, currently free before our full launch.

Stay tuned for more updates. If you are interested in participating, running a node, or generally have any questions, jump into our discord channel and speak directly with our core team.

Matic Network powers Mysterium P2P payments

Are you ready for faster, cheaper dVPN transactions? Matic Network is making it happen for you!

 

We’re excited to share that we’ve partnered with Matic Network. We’re only weeks away from our live integration with their custom Layer 2 solution, which will provide all users of شبكة مستيريوم الافتراضية الخاصة غير المركزية (dVPN) with almost instant P2P payments, at a fraction of the cost. (Quite literally, it’s a millionth of a fraction…)

 

The problem we are solving with Matic Network

As the wider community is surely aware, we as an industry have been facing specific challenges with expensive transaction fees on the Ethereum blockchain. 

With the freedom of speech online being debased, a global pandemic and other macro forces in play  – we see it as a priority to enable peer to peer payments in the most frictionless way possible.

Mysterium Network, with our pay as you go service, is a natural ally for emerging markets when high transaction fees on Ethereum lock these users out.

This integration with Matic Network will mean that Mysterium account creation and top-ups will happen on a sophisticated and scalable Layer 2 sidechain, instead of on the Ethereum blockchain.

MATIC network

What this means in technical terms:

  • Hermes, Mysterium’s accounting hub, will be running on both Ethereum and Matic – find out more about Hermes hub in our micropayments whitepaper.
  • You will be able to move MYST tokens onto Matic via a Hybrid Plasma-POS Bridge. This bridge provides a POS and a Plasma option to bridge assets between Ethereum and Matic. 
  • The mysterium payment system will support cross-chain payments. This means that VPN users can have funds on L2 Matic chain, and Mysterium node runners can accept funds on L1 (Ethereum)

 

Some relevant numbers – registration TX fee on…

ETH mainnet: 10.3322418978 MYST

Matic: 0.000005699966589 MYST

In short, Matic is  1, 812, 685 times cheaper!😱

 

Want to know more?

We have written extensively on the topic in the context of building out a global censorship-resistant layer. For those interested: 

  1. Layer 1, 2, 3 and beyond: The search for the cheapest and fastest microtransaction
  2. Introduction to micropayments in a decentralised virtual private network (dVPN)
  3. Read our technical deep dive on peer to peer micropayments.

Want to get involved in Mysterium Network today?

Mysterium Network is a decentralized VPN, with a growing global residential IP node network. There are versions for ذكري المظهرMac and Windows, currently free before our full launch.

Follow us on Twitter for regular updates or jump into our discord channel to speak directly with the core team.

 

Migrate your tokens & earn 10 $MYST

Mysterium Network has been hard at work building a decentralised VPN. To date, we have maintained an incentivised test network of residential IPs for over a year. Our next step, peer to peer payments – which come with Mysterium Mainnet.

Relevant Reads:

  1. Mysterium Token Migration Guide 
  2. The Road to Mainnet: Mysterium Product Roadmap Update 

Mysterium Network began our token migration as part of our wider move to MainNet. To date, we have migrated about 15 million legacy tokens.

As we approach Mainnet, we would like to encourage our core community to migrate legacy MYST tokens. To help this initiative along, we are launching an airdrop between the 18 & 25 November 2020! 

We are launching an airdrop between the 18 & 25 November 2020!

Why an airdrop?

We plan to compensate MYST token holders for the high Ethereum transaction fees they might incur during the token migration process.

To reiterate terms of our token migration: 

  1. This a 1:1 token migrations
  2. No new tokens will be created

Want to get 10 MYST airdropped into your wallet? 

  • Migrate your tokens from your old addresses to a new one from 00:00 between the 18 & 25 November 2020
  • Regardless of the number of tokens that you own, we will compensate you 10  MYST (One user gets 10 MYST). 
  • Multiple applications from one participant, as well as other actions that can be qualified as fraud, will result in disqualification from this airdrop. Simply put, no MYST if you try to game the system. 
  • MYST tokens will be distributed to new token addresses between 26 November and 2 December 2020

As you can clearly see, the nature of the service we are offering and the emerging markets that we are a natural ally to, make Ethereum’s current transaction fees a lock out when onboarding new customers. 

As such, like many other Ethereum-based projects, Mysterium Network has had to reroute our roadmap in search of scalability solutions to give our users the cheapest and fastest service possible, while maintaining decentralized and noncustodial architecture. 

In the following sections, we will review existing Layer 2 solutions in relation to Mysterium Network’s use case, explaining how they offer both opportunities and limitations.

How can I get support migrating my legacy MYST tokens?  

 We have an easy to follow token migration guide to get you started, otherwise jump into our and speak directly with our core community and team.

How can I get support on this airdrop?

If you have any issues with the airdrop after successfully completing all terms of requirements, please, write to us at help@mysterium.network.

Mysterium Network Product Updates – October 2020

Mysterium Network is building a decentralised VPN. Our global network is open, permissionless and distributed. Last year we focused on finetuning our node software, and understanding dynamics in incentivised networks. This year, we’re balancing out the marketplace with focus on consumer applications. If you haven’t already, please make sure to download Mysterium VPN for Windows, Mac and Android. Let us know what you think on النقاش or تويتر.

The past few months at Mysterium has seen us reroute our roadmap as we head towards mainnet launch. As with all new technologies built from scratch, we’ve encountered some unexpected challenges, which are shared with the entire industry! Building on top of a quickly evolving Ethereum ecosystem has been especially difficult for teams like us, who need workarounds for high transaction fees and network congestion. 

Aside from this renavigation, there have been some exciting developments and initiatives. Check out our latest product updates;

 

Networking research spikes: China and Iran

Our networking team is hard at work finding better ways to make us censorship-resistant. This includes overcoming the ban of our node discovery in certain parts of the world. The plan is to make our node discovery distributed, and as such, harder to block by firewalls. Increasing and securing this undetectability is an important step if we’re to reach vulnerable communities who need internet freedom the most.

 

Payments research spike

Our payments team dove deep into the various L2 scaling solutions in the market. Many of these solutions have emerged due to consistently high GAS prices on Ethereum mainnet. The goal was to evaluate both opportunities and possible limitations for Mysterium Network. We will be publishing a revised product roadmap in November. Our technical deep dive is also coming shortly.

 

Implementation of Coingate

We have made major headway into a Coingate integration. This will enable top-ups in your Mysterium account with various different cryptocurrencies (BTC, LTC, ETH, etc). Under the hood, the app will convert these cryptocurrencies into MYST and top up your Mysterium account (payment channel) with those MYST tokens. This is an important step towards lowering the barrier to entry, enabling a wider spread of adoption and more seamless access into Mysterium Network and its VPN services. This will be deployed and tested on Mysterium testnet in November.

 

Automated identity manager (Pilvytis)

Pilvytis “watches” the payment channels of given users and automatically tops them up when needed. This is important for potential B2B clients who have expressed demand for paying for VPN services in fiat. This is so that they can access Mysterium via network as a service (NaaS), guaranteeing that their consumer applications are never out of balance.

 

New WebUI

This effectively changes the node on-boarding process. Stay tuned for some changes in live environments (my.mysterium.network, node onboarding).

 

Top up flow for Android, Windows and Mac applications

In preparation for BetaNet launch and paid testnet, we have added new top up flows to our Android and desktop applications. Previously users were getting accounts for free, but in BetaNet (and mainnet in the future) they will have to top up their Mysterium account first. More detail on this in our roadmap updates in November.

 

Added referral program support

Users will be able to share referral links and receive rewards. These referral codes will give free account creation and some initial MYST to test the system. We want to reward our community and leverage their support to reach more people who need our dVPN.

 

Updated documentation for node runners (new docs coming soon)

This has been an ongoing project to clean up our documentation. We have started with node runners but this is a wider project to add more detail and clarity to our developer documentation in the future. #OpenSource

 

Want to get involved in Mysterium Network today?

Mysterium Network is a decentralized VPN, with a growing global residential IP node network. There are versions for  ذكري المظهرMac and Windows, currently free before our full launch.

Stay tuned for more updates. If you are interested in participating, running a node, or generally have any questions, jump into our discord channel and speak directly with our core team.

 

 

What is Mysterium BetaNet, and why you should join

best cybersecurity tips

We are fast approaching the official launch of Mysterium Network, a world first pay-as-you-go crypto VPN. But before that, we’ll bring you BetaNet. Read on and learn why…

Mysterium is very different from your regular VPN. Download Mysterium VPN for free (for a limited time). Try it for yourself! Download on ذكري المظهر, Mac, and Windows.

Thanks to its peer-to-peer (P2P) architecture, there are no contracts, no subscriptions, and no locked-in costs. You get direct access to a global list of residential IP addresses, provided by everyday internet users around the world, so you can teleport anywhere online. 

Our custom designed payments infrastructure lets you stream, connect, share and socialise by the second. Switch on and off whenever you need, and only pay for what you actually use, minute by minute.

And because you pay with cryptocurrency (the future of money, it’s here to stay!), these micropayments are as untraceable as your browsing habits. Paying with crypto means that you’re paying for your privacy the fastest, cheapest and most anonymous way.

Mysterium VPN is the evolution of cybersecurity. It’s integrated OpenVPN and WireGuard protocols, so everything you do is protected by the highest industry standards. 

And thanks to our decentralized architecture, it’s technologically impossible for us to log anything. We connect you to residential IPs only, so there are no giant servers for us to store any kind of data. While regular VPNs claim they don’t do any logging, you just have to take their word for it. 

VPN vs TOR vs dVPN

What’s the deal with BetaNet?

We’ll soon move Mysterium onto BetaNet, a brief stopover between our free version and our full launch. During this phase, we will collaborate with our community to battle test the code and make sure everything’s working as it should. When it comes to your privacy, there’s no room for error.

We will begin with an invite only BetaNet, working with a small group of initial testers. The rationale behind invite only is to ensure a controlled environment as we transition to real P2P payments with MYST on the Ethereum blockchain.

Interested in exploring the Mysterium Network BetaNet? Use this form to register or jump into our Discord channel and let the team know.

With your help, we will make Mysterium VPN even BETA than you can imagine 😉

Following a successful BetaNet, we will transition Testnet users onto MainNet, and release Mysterium VPN into the wild for the whole world to play with.

And if you’ve made it this far through the blog… make sure to enter the MYSTEARLYACCESS code in the Gleam widget to unlock your extra points in our giveaway competition!

Mysterium Network begins token migration

Mysterium Network begins its official token migration today, 31st August 2020. This will be a 1:1 token migration, so no new tokens will be created. Legacy tokens will not be supported in the network, so you will need to migrate your tokens before topping up in-app.

Here’s the new MYST token address: 0x4Cf89ca06ad997bC732Dc876ed2A7F26a9E7f361 

اكتشف المزيد about how the Mysterium Network token migration moves the project towards peer to peer payments on the Ethereum blockchain.

What is Mysterium BetaNet?

Mysterium BetaNet is the first iteration of peer to peer payments within Mysterium Network: 

  • MYST as a means of value exchange in the network 
  • Payments are settled on the Ethereum blockchain 
  • It’s our second stage towards Mysterium Mainnet.

Mysterium Network is running an opt-in BetaNet. Mysterium Network will not be migrating TestNet users to BetaNet at this stage. VPN services continue to be accessible on Mysterium TestNet.

Sign up to take part in Mysterium BetaNet.

What should MYST token holders do?

MYST token holders are encouraged to migrate their tokens at their earliest convenience.  

Though there is no deadline on the migration, you will not be able to access VPN services within Mysterium Network using legacy MYST. 

If your MYST is held in a decentralised exchange or in a wallet, you will have to migrate your tokens yourself. Please follow the token migration guide. 

If you have your tokens stored on HitBTC, they will be migrated for you. The Mysterium Team is currently working with their team and will provide updates as we progress.

MYST token migration guide

Migrating a token is simply to upgrade the smart contract of that token. In the case of Mysterium, we are upgrading legacy MYST (pure ERC20) to new MYST (ERC20 with `permit`: 712-signed token approvals).

This is a 1:1 token migration so there will be no new tokens created.

How will MYST token migration work? 

From 31st of August, MYST token holders will be able to start migrating their tokens into the new token standard. This will become the standard MYST token used within Mysterium Network’s payment system. All exchanges are informed and are preparing for the upgrade on their end. If you are holding MYST on HitBTC exchange, the migration will be done automatically and you will not need to do anything. 

If you are storing your MYST tokens outside the exchanges, you will have to conduct the migration yourself. In essence, you will need to initiate a transaction from your wallet address which holds MYST tokens into our current token smart contract address and call an upgrade function upgrade(uint256 value) there.

Note:

  • While there will be no time limit for migrating tokens, please be aware that only the new token standard will be used in the Mysterium Network payment system and actively traded on exchanges. However, you will not lose your original MYST tokens if you do not migrate within a specific deadline. This means you can perform your token migration at a convenient time to you. Your wallets which are supporting ERC20 tokens will work fine with the upgraded MYST token as well. 
  • During the upgrade transaction, legacy MYST tokens will be burned and new MYST will be created and sent to the same address.
  • You can do migration in parts, so no worry if after migration someone sends you legacy MYST tokens. You will be able to migrate them as well.
  • The MYST migration process has no time limit. If anyone in the future sends you legacy MYST, you will be able to migrate them at any point in time.

Do I need to have ETH on the address where my MYST tokens are in order to migrate them successfully?

You need a small amount of ETH on the same address where your MYST tokens are in order to pay for gas fees on the Ethereum network. Due to high transaction fees on Ethereum blockchain, we recommend having at least 5 USD of ETH there and set at least 90.000 gas limit. You can check average gas fees before starting the migration here.

Token migration steps

Where should I store my MYST tokens and how do I manually migrate them?

The token migration process includes several options – MetaMask, Etherscan or MyEtherWallet (MEW). Through MyEtherWallet you can use:

  • Ledger (also possible to use with MetaMask and Etherscan)
  • Trezor (also possible to use with MetaMask and Etherscan)
  • Digital Bitbox
  • Secalot
  • Keystore / JSON File
  • Mnemonic phrase / seed
  • Private key

Token Migration using My Ether Wallet (MEW)

If your MYST tokens are stored in one of the above forms, please select MEW when you reach the step where you need to select the wallet that stores your MYST tokens. Once you have synchronised your wallet with MEW, you can start now with the token migration process:

  1. Go to the home page of https://myetherwallet.com
  2. Click on “Send > Send Transaction”
  3. Select ETH as a type of token to send and enter the 0 as amount
  4. Enter the address of the legacy MYST token smart contract:  0xa645264C5603E96c3b0B078cdab68733794B0A71
  5. Enable “Data & Gas Limit” under Advanced options. Set at least 90.000 gas limit.
  6. Add your payload data (use payload generation tool)

  7. Click on “Send Transaction”.
  8. You new tokens will be visible on new MYST smart contract address: 0x4Cf89ca06ad997bC732Dc876ed2A7F26a9E7f361

 

Token Migration using Etherscan

You are also able to migrate your tokens via Etherscan and interact with the contract directly.

  1. Go to the token contract page directly https://etherscan.io/address/0xa645264C5603E96c3b0B078cdab68733794B0A71
  2. Navigate to the “Write Contract” tab on the Contract page.
  3. Connect to a Web3 provider, such as MetaMask, Fortmatic or Portis. You can connect a hardware wallet such as Trezor or Ledger to your MetaMask extension, and thus interact without MYST leaving your hardware wallet.
  4. Find upgrade function in the list and type in the amount of tokens you’d like to migrate. NOTE: legacy MYST token had 8 zeros, so to migrate 123,05 MYST, you should type: 12305000000.
  5. Metamask will show popup, adjust gas fee and make a transaction. After the transaction is mined, your new tokens will be visible on the new MYST smart contract address: 0x4Cf89ca06ad997bC732Dc876ed2A7F26a9E7f361

 

Token Migration using Trust wallet

You’re able to upgrade the smart contract of MYST token inside your Trust Wallet app. Follow the steps below to help you in transition.

  1. Connect to your Trust Wallet, tab on Ethereum and click Send.
  2. Next, enter 0 in the ETH amount to send and the address of the legacy MYST token smart contract: 0xa645264C5603E96c3b0B078cdab68733794B0A71.
  3. Click on “Continue”.
  4. In the “Confirm Transaction” screen click on the gear icon at the top right corner.
  5. Head over to “Transaction Data (Optional)” and paste your payload generated by https://mysteriumnetwork.github.io/payload-generator/. Set at least a 90.000 gas limit.
  6. Click on “Save” and then “Confirm Transaction”.
  7. After a minute the transaction should be validated on the blockchain and your tokens will be successfully migrated.

High Ethereum transaction fees, and what that means for Mysterium Network

Ethereum transaction fees spike, affecting dapp user onboarding

As we all know the market is changing. The DeFi bubble has led to insane Ethereum transaction fees

But it isn’t just decentralized exchanges that are being hit by this spike in GAS prices. Decentralised applications building within the Ethereum ecosystem is having to go back to the drawing board.

As you can see in the chart above, you can see that this a problem that is here to stay. 

Take for example the impact of a $3 transaction fee with a median expected top-up value between $3 – $10. Using a dex would incur an even higher transaction fee. So in some cases transaction fee can be as big as topup value, such situation is a point of friction in our user onboarding process. 

In the long term, there will be widespread and commonly accepted layer two solutions for the decentralised community that will solve for these spikes in the transaction fees on Ethereum. This could be ETH 2.0 or a widely adopted second layer solution based on payment channels. 

But this isn’t the current case. As a team committed to user onboarding, we put serious time and thinking into how we can alleviate this friction point for users within Mysterium Network.

What about other blockchains?

We have taken time to consider other blockchains and analyse if this is a solution to the transaction fee problem. There are several EVM compatible solutions such as RSK, Tron, TomoChain, just to name a few.

In case you were wondering…

There are endless solutions which are just as promising when it comes to cheap and fast transactions, for example, EOS, Liquid, Stellar, Nano, Holo, and the list goes on…


Here are some of our reasons for our continued commitment to the Ethereum blockchain: 

  • The Ethereum ecosystem holds a large community of users who know how to use Ethereum wallets
  • Integrations with DEXes such as Uniswap, which will allow for ETH, DAI and other ERC 20 token holder communities to easily pay for VPN services within Mysterium Network
  • Proven security model 

Big and growing developer community. As builders, we want to be amongst our own. 

But does this mean we have to live with the high transaction fees? Not necessarily - Introducing “Mysterium Pro”

How does Mysterium Pro solve the transaction fee problem?

The only place where these high transaction fees touch Mysterium Network’s service offering is in the top-up function. All other transactions are happening in our own, scalable micropayment channels based L2 solution. Find out more here:

  1. Introducing payments on Mysterium Network
  2. A deep dive into payments on Mysterium Network

This is the moment where end-users top-up their payment channel so they can begin to pay for VPN services within the network. 

With Mysterium Pro, users can circumvent high transaction fees by choosing to top-up their payment channels with BTC, BCH and other low transaction fee tokens. 

Mysterium Pro will also include a solution which batches end-users tokens before converting them to MYST, therefore spreading the cost of transaction fees over users. This allow means mucheven cheaper top-ups for Mysterium Pro users.

Mysterium Pro launches after our mainnet release. See our latest update on MYST token migration.

Want to get involved in Mysterium Network today?

We’re building towards Ethereum mainnet. This is when peer to peer payments within Mysterium Network become a reality. As part of this, we are recruiting testers for our beta net, a place where we will work with our community to battle test our code.

Here’s a snapshot of our progressive migration onto Ethereum mainnet: 

If you’re interested in getting involved, sign up here!

Want to get involved in Mysterium Network today?

Mysterium Network is a decentralized VPN, with a growing global residential IP node network. Download our apps to browse the internet freely.

Building on the bleeding edge

As the Head of Product of Mysterium Network, I am charged with everything from driving micropayments research to delivery of working applications on Android, Windows and Mac.

A regular VPN application is hard enough, but it’s even more challenging when we are seeking to decentralize the infrastructure through which the service is provided. Let’s add peer to peer and blockchain payments into the mix of network security, and you’re bound to have multiple shifting pieces that you’re building upon.

Here’s an update from me as Mysterium Network transitions into Mainnet. 

I first want to quickly reiterate the goal of the MYST token migration.

We were looking to implement an easy way for consumers to top up their dVPN app accounts using ETH and for node runners to withdraw earned MYST into ETH (and maybe even DAI) automagically using a decentralized exchange. We wanted this to happen in a single transaction, so users would have the best possible experience.

ERC777 based token and their callback hooks looked like a good solution for our needs. That’s why we announced the migration of MYST into an ERC777 based token.

Mysterium Network will transition to updated ERC20 token with `permit`: 712-signed token approvals (ERC2612) at the end of August. 

Part of our process gearing up for real payments on Ethereum blockchain included the submission of two versions of our token to our security auditors (both ERC777 and ERC20 +ERC2612 versions). 

Based on feedback from auditors, and our deeper research into current DeFi projects, we are making the decision to par back the scope of our token migration for the moment. 

This is due to several factors. The ERC 777 token standard is a new technology. It was peer-reviewed for two years and finally marked as final on 7 May 2019. The token is extremely advanced and powerful. However, its use in DeFI projects can be dangerous because of some specific vectors of attacks. Even though more popular projects (e.g. Uniswap v2 or Kyber network) are taking steps to be protected against these types of attacks, there are some who may not take such precautions.

In saying that we have found an alternative and less risky solution for achieving all required peer to peer payment system functionality. 

This will involve an upgrade to the ERC20 token with the extension of `permit`: 712-signed token approvals (ERC2612).

What is the ERC2612 standard, and how does it help Mysterium Network? 

ERC2612 is standardising `permit` function which was introduced in DAI token and is now popularised by the Uniswap team.  

So first things first, for the geeks amongst us. If you’re not a developer, feel free to skip past this section. 

What is the permit functionality?

   function permit(address holder, address spender, uint256 value, uint256 deadline, uint8 v, bytes32 r, bytes32 s) external {
       require(deadline >= block.timestamp, 'MYST: Permit expired');
       bytes32 digest = keccak256(
           abi.encodePacked(
               '\x19\x01',
               DOMAIN_SEPARATOR,
               keccak256(abi.encode(PERMIT_TYPEHASH, holder, spender, value, nonces[holder]++, deadline))
           )
       );
       address recoveredAddress = ecrecover(digest, v, r, s);
       require(recoveredAddress != address(0) && recoveredAddress == holder, 'MYST: invalid signature');
       _approve(holder, spender, value);
   }

The function permit extends the ERC20 allowing for the following benefits: 

  • Transactions involving ERC20 operations won’t require ETH and can be paid for by the token itself. 
  • Approve and pull operations happen in a single transaction, instead of two consecutive ones – making the transaction cheaper.  

This means that MYST token holders who don’t own ETH are able to  give permission to smart contracts which would extend the native token functions and allow more advanced operations (similar to those provided in ERC777). This was possible before with `approve` function, but only for ETH holders. Now it becomes possible for various apps where users are not holding ether, e.g. Mysterium dVPN app.

 

Our plans ahead.

Our token migration will commence at the end of August.

TestNet

Mysterium Network is currently running on TestNet, this means that test token payments are happening on Ethereum’s Goerli testnet and node bounty payouts are managed by the Mysterium Team.

BetaNet

We will begin with an invite only BetaNet. During this point, there will be a development freeze on our TestNet. We will be working with a small group of initial testers on our BetaNet. Interested in being a part of the Mysterium Network BetaNet? Use this form to register or jump into our discord channel and let the team know!

The rationale behind an invite only BetaNet is to provide a controlled environment as we transition to real peer to peer payments with MYST on the Ethereum blockchain.

MainNet

Once our team has battle tested our technology during the BetaNet phase, we will merge all the code into master repository on github, deploy final version of smart contracts and update all the apps and services. This will become Mysterium Network MainNet.

Looking into the future

After the token migration and a successful transition onto Ethereum Mainnet, we are planning to integrate with a decentralised exchange, most probably Uniswap v2. This integration with Uniswap will open up app top-ups with ETH for consumers and direct withdrawal to ETH or DAI for node runners as we will have liquidity pools there.

PS: We code golang, and are hiring. If you’re a golang whiz, I’d love to hear from you. Ping me on our discord or send me a message on twitter