PepperDEX: The Connective Tissue of Spicenet
Last updated
Last updated
PepperDEX is the native application on Spicenet, designed to act as the connective tissue in the Spicenet ecosystem. PepperDEX wears multiple hats, but broadly, it is responsible for 3 things
Act as a gateway to Spicenet, allowing new users to seamlessly bridge over their funds and access the Spicenet ecosystem.
Smart wallet management tool for users, allowing them to create and link ephemeral wallets like session keys, Face IDs, etc.
Manual re-allocation of collateral while accessing heterogenous trading applications that support only some forms of collateral.
Let's understand each of these functions in depth and how PepperDEX makes the application ecosystem of Spicenet more connected and tightly knit.
PepperDEX is one of the official gateways to Spicenet, allowing users to deposit collateral to Spicenet margin accounts(aka UMAs) within seconds, backed by the Artemis bridging protocol of Spicenet. This removes the need for other applications to implement bridging logic, as once collateral is deposited in a margin account, it can be used across any Spicenet application, provided the application supports the collateral type.
This is the magical benefit of unified margin accounts, although subtle. A user on the Spicenet network just needs to deposit once to the network, and can immediately use the vast breadth of applications on Spicenet. This removes the need for withdrawing and re-depositing collateral everytime a user wants to switch applications, presenting a unified, streamlined and integrated UX for users.
Spicenet pioneers abstracted access to the network via Capsule: it's smart wallet solution, allowing users to sign transactions on Spicenet using any wallet, be it EVM, Cosmos, SVM or Move. This is made possible by separating custody from signatures. Funds are custodied in a Spicenet-native account, while transactions can be signed using any (supported) keypair, including Solana, Ethereum Cosmos and Move-based chains. Moreover, users can add ephemeral wallet extensions, such as session keys, FaceIDs, Web2 authentication mechanisms, and so on.
PepperDEX will act as the hub allowing users to link new keypairs. Once a new keypair has been added, it can be used to sign transactions on any Spicenet application, another benefit of unified margin accounts. Users can also add ephemeral wallet extensions on Spicenet, such as creating a new session, linking their FaceID, and so on.
PepperDEX acts as a connective tissue between multiple heterogenous Spicenet applications. On Spicenet, applications can be fully heterogenous. Meaning that applications can fully customize and choose what collateral assets and markets they want to support. Hence, there is a chance that the application you're switching to does not support the collateral assets you hold, requiring you to swap that collateral to something else that is supported by the application. This can be worse if the collateral is already put at work in a futures position, or borrowed against, etc.
PepperDEX allows users to "hotswap" their collateral with other assets, even if the collateral is locked up in futures position. This is done so after accounting for appropriate risk and LTV values of the asset that is being swapped to, to make sure that any existing positions are not undercollateralized. Soon, the protocol will introduce collateral flashswaps, implemented in the core Spicenet SDK, allowing for automatic collateral swaps as users are switching between heterogenous applications.
