Tutorials:Read Contract

2026-01-13T02:12:57Z

Mediawiki:

A smart contract is not a “user account.” It’s code + on-chain storage living at an address. People (wallets) send transactions to the contract address, and the contract updates its internal storage according to its rules.

=Spring Token Contract Address=

Let's have a look at the Spring Tokens Smart Contract in Ethereum:

0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE

[https://etherscan.io/address/0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE View on Etherscan]

[[File:Smart01.jpg|800px]]

In "Overview" we see that the contract does not hold ETH, and idealy should not hold tokens. But at time of this writing it shows 1 token in holdings. This is most likely spam sent to addresses as advertising. And quite often to try to scam people, so be careful with these.

In the "More Info" tab we see the "Contract Creator" address, and a link to the Token tracker page that combines:

On-chain data (supply, holders, transfers, contract, decimals)

Off-chain / reference data (token name/symbol, links, sometimes reputation indicators)
in a single token-focused dashboard.

We have many tabs like: Transactions, Internal Transactions, Token Transfers, etc. We will look at the contract tab and get some information from the contract.

=Read Contract=

By clicking in the "contract" tab, and then "read code" we can get some information from the contract itself:

Click on Read Contract and see the field number 4: Initial_Reward field.
The initial reward was 168 Spring tokens, but the number is written with 18 zeroes because it is given in "Wei" units.

Wei is the smallest denomination of Ether (ETH) on the Ethereum network, named after cryptographer Wei Dai; one Ether equals one quintillion (10¹⁸) Wei, making Wei essential for precise transaction fees (gas) and microtransactions, similar to how a Satoshi is the smallest unit of Bitcoin. It allows for granular calculations, preventing rounding errors in the complex operations of smart contracts and decentralized finance

In the field 18 we see the result of calling "Get Mining Reward" method, and it gives the current number of tokens per reward. Other interesting field is number 29: Tokens Minted, showing how many tokens have been minted so far.

[[File:Smart012.jpg|800px]]

=Minting Tokens=

The Transactions tab lists the normal, signed transactions that directly call the contract (usually from a wallet or Externally Owned Account). An external account can call the Mint function of the contract, but this is rarely happening because the tokens are mined trough mining pools, and they do not appear as normal transactions. The records of token creation appear in the "Events" tab.

Only the latest 25 events appear, and you can see some Mint events. Although Seasonal Tokens rewards are issued every 10 minutes on average, in the sense that every 10 minutes a solution to the proof of work is found, the mint function is not called every 10 minutes. The mining pools collect many solutions and submit only one mint call every few hours to save on gas fees.

In the next tutorial [[ Tutorials:Mint_Transaction | Mint Transaction]] we will review a mint transaction.

Tutorials:Read Contract

2026-01-12T20:15:03Z

Mediawiki:

A smart contract is not a “user account.” It’s code + on-chain storage living at an address. People (wallets) send transactions to the contract address, and the contract updates its internal storage according to its rules.

=Spring Token Contract Address=

Let's have a look at the Spring Tokens Smart Contract in Ethereum:

0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE

[https://etherscan.io/address/0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE View on Etherscan]

[[File:Smart01.jpg|800px]]

In "Overview" we see that the contract does not hold ETH, and idealy should not hold tokens. But at time of this writing it shows 1 token in holdings. This is most likely spam sent to addresses as advertising. And quite often to try to scam people, so be careful with these.

In the "More Info" tab we see the "Contract Creator" address, and a link to the Token tracker page that combines:

On-chain data (supply, holders, transfers, contract, decimals)

Off-chain / reference data (token name/symbol, links, sometimes reputation indicators)
in a single token-focused dashboard.

We have many tabs like: Transactions, Internal Transactions, Token Transfers, etc. We will look at the contract tab and get some information from the contract.

=Read Contract=

By clicking in the "contract" tab, and then "read code" we can get some information from the contract itself:

Click on Read Contract and see the field number 4: Initial_Reward field.
The initial reward was 168 Spring tokens, but the number is written with 18 zeroes because it is given in "Wei" units.

Wei is the smallest denomination of Ether (ETH) on the Ethereum network, named after cryptographer Wei Dai; one Ether equals one quintillion (10¹⁸) Wei, making Wei essential for precise transaction fees (gas) and microtransactions, similar to how a Satoshi is the smallest unit of Bitcoin. It allows for granular calculations, preventing rounding errors in the complex operations of smart contracts and decentralized finance

In the field 18 we see the result of calling "Get Mining Reward" method, and it gives the current number of tokens per reward. Other interesting field is number 29: Tokens Minted, showing how many tokens have been minted so far.

[[File:Smart012.jpg|800px]]

=Minting Tokens=

The Transactions tab lists the normal, signed transactions that directly call the contract (usually from a wallet or Externally Owned Account). An external account can call the Mint function of the contract, but this is rarely happening because the tokens are mined trough mining pools, and they do not appear as normal transactions. The records of token creation appear in the "Events" tab.

Only the latest 25 events appear, and you can see some Mint events. Although Seasonal Tokens rewards are issued every 10 minutes on average, in the sense that every 10 minutes a solution to the proof of work is found, the mint function is not called every 10 minutes. The mining pools collect many solutions and submit only one mint call every few hours to save on gas fees.

Tutorials:Read Contract

2026-01-12T19:49:25Z

Mediawiki:

Tutorials:Read Contract

2026-01-12T14:38:47Z

Mediawiki:

=Read Contract=

Let's have a look at the Spring Tokens Smart Contract in Ethereum:

0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE

[https://etherscan.io/address/0xf04aF3f4E4929F7CD25A751E6149A3318373d4FE View on Etherscan]

[[File:Smart01.jpg|800px]]

By clicking in the "contract" tab you can read the code. Click on Read Contract and see the Initial_Reward field.
The initial reward was 168 Spring tokens, but the number is written with 18 zeroes because it is given in "Wei" units.

Wei is the smallest denomination of Ether (ETH) on the Ethereum network, named after cryptographer Wei Dai; one Ether equals one quintillion (10¹⁸) Wei, making Wei essential for precise transaction fees (gas) and microtransactions, similar to how a Satoshi is the smallest unit of Bitcoin. It allows for granular calculations, preventing rounding errors in the complex operations of smart contracts and decentralized finance

[[File:Smart012.jpg|800px]]

==Exercise:==

Click on the Transactions tab and find the latest MINT transaction:

[[File:Smart02.jpg|800px]]

We will use it in the next quest.

Tutorials:Front-running Bots

2026-01-12T03:37:27Z

Mediawiki:

= Front-Running Bots on Ethereum (and Similar Blockchains)=

Front-running bots are automated programs that exploit the transparent nature of blockchain transactions. Since transactions on blockchains like Ethereum are publicly visible in the mempool (a waiting area for transactions before they are included in a block), these bots monitor the mempool for profitable transactions and insert their own transactions ahead of them to gain a financial advantage.

==How Front-Running Works:==

1. '''Transaction Monitoring:''' The bot constantly scans the mempool for large or profitable trades, such as swaps on decentralized exchanges (DEXs) that could affect token prices.

2. '''Priority Insertion:''' Once a profitable transaction is detected, the bot creates a similar transaction but offers a higher gas fee to miners. Miners prioritize transactions with higher gas fees, so the bot’s transaction is included in the block before the target transaction.

3. '''Profit Extraction:''' By front-running the transaction, the bot can manipulate the price (e.g., by buying before a large order and selling immediately after at a higher price), thereby earning a profit.

==Types of Front-Running:==

*'''DEX Arbitrage:''' Bots front-run large trades on DEXs, causing price slippage and selling at a higher price.
*'''Sandwich Attacks:''' The bot places one transaction before and another after a target transaction, effectively "sandwiching" it to profit from the price movement.

== Consequences:==

*'''Higher Transaction Costs:''' Front-running increases network congestion and raises gas fees for regular users.
*'''Unfair Market Manipulation:''' It creates an uneven playing field where regular users lose potential profits or suffer from poor trade execution due to slippage.

==Mitigation Strategies:==

*'''Private Transactions:''' Tools like Flashbots allow users to submit transactions privately to avoid exposure in the mempool.
*'''Slippage Controls:''' Setting lower slippage limits can reduce the risk of being exploited by front-running bots.
*'''New Protocol Designs:''' Some projects are exploring ways to redesign transaction ordering to prevent front-running.

This behavior highlights the importance of privacy and fair transaction ordering in decentralized systems.

=='''Exercise:'''==

When we visit the Buy/Trade tokens page in [https://seasonaltokens.org/trade Seasonal Tokens] website we see a red warning:

Due to detected activity of frontrunning bots, we recommend using smart transactions in Metamask for trades larger than $100 worth of Matic.

[[File:Frontrunningwarning.jpg|600px]]

But more importantly, how to enable smart transactions in Metamask?

# Click on the 3 dots besides the Account name.
# Select "Settings"
# From '''Settings''' Select "Advanced"
# Notice the status of Smart Transactions.

Visit the website explaining how Metamask implements Smart Transactions.

[https://metamask.io/news/latest/introducing-smart-transactions/ Smart Transactions]

Tutorials:Swap tokens for Pol Using Uniswap

2026-01-12T03:36:17Z

Mediawiki: /* Exercise: */

=Swap Tokens for POL in Uniswap=

Let's swap 105 Winter tokens for POL using Uniswap, and compare it to the same transaction using Metamask.
You will notice that Metamask is a bit more expensive. They claim that your transactions are safer using their own tools that can minimize price slippage.

Including the price slippage caused by trading bots that try to exploit the decentralized market making formula. We will talk more about these "front running bots" in the next quest.

* Go to [https://app.uniswap.org/swap Uniswap]

[[File:UniswapWinPol.jpg|600px]]

==Transaction in Metamask==

Let's get the Metamask quote for this transaction:

[[File:UniswapWinPol01.jpg|600px]]

'''Notice:'''

* The quote: 1 Winter = 0.0080 POL includes a 0.875% Metamask Fee.
* Metamask will enable Winter for Swapping.

==Transaction in Uniswap==

With Metamask connected to the Polygon network, visit [https://app.uniswap.org/swap Uniswap] and click on connect wallet:

[[File:UniswapWinPol02.jpg|600px]]

After confirming the connection, click on select token (see the orange arrow)

[[File:UniswapWinPol03.jpg|600px]]

In Metamask, let's copy the Winter contract address:

[[File:UniswapWinPol04.jpg|600px]]

And paste it in the search tokens field:

[[File:UniswapWinPol05.jpg|600px]]

Warning:

Anybody can create a smart contract or token and call it Winter or Bitcoin, there are no authorities regulating the Open Source programming. Therefore it is very important that you know exactly the contract address of the assets.

Here we can confirm that this is the right contract because the Uniswap window shows the correct Winter amount we are swapping.

[[File:UniswapWinPol06.jpg|600px]]

And select POL for the destination, and get Uniswap quote:

[[File:UniswapWinPol07.jpg|600px]]

Notice we get a slightly better price, not very important in these small transactions.

Now we will confirm and swap. This will be done in 3 steps:

# Approve in Wallet (Metamask did this step more automatically)
# Sign Transaction
# Confirm the Swap

You only have to authorize Uniswap to use Winter tokens once.

[[File:UniswapWinPol08.jpg|600px]]

Now give permissions to withdraw the tokens:

[[File:UniswapWinPol09.jpg|600px]]

At this point we have authorized Uniswap to spend AND withdraw the tokens, now finally you can do the swap:

[[File:UniswapWinPol10.jpg|600px]]

By then prices may have changed, even significantly, so this is the final confirmation to go on with the transaction:

[[File:UniswapWinPol11.jpg|600px]]

Let's review the transaction in the Activity tab:

[[File:UniswapWinPol112.jpg|600px]]

Click on the transaction and select: View on Block Explorer.

[[File:UniswapWinPol12.jpg|600px]]

==Conclusion==

We obtained a slightly better price in Uniswap, and it cost less gas as well. This is not very important for such small transactions, sometimes, specially if you are swapping POL for tokens (buying tokens), the price slippage may be a problem and paying a little more in Metamask may be justified.

Always pay attention to the last "confirmation" message from Metamask, prices may have varied significantly since you receive the quote and execute the transaction. This "price slippage" can be exploited by people and trading bots as we will see in the next quest.

==Exercise:==

Using the transaction hash:

0xa991445bf93b48ff09c8c154e8d386b4513f3925ecc526f551fdd53a0c8ed7da

Go to PolygonScan and find the contract address of Uniswap Universal Router (V1 2 V2 Support). Notice it is doing the same function as the Metamask Swap Router contract.

In the next tutorial we will talk about [[Tutorials:Front-running_Bots | Front-running Bots]] and how to avoid them.

Tutorials:Swap tokens for Pol Using Uniswap

2026-01-12T03:25:34Z

Mediawiki:

Tutorials:POL transaction

2026-01-12T03:21:07Z

Mediawiki:

=POL Transaction=

Let's send some POL as well to our test account so we can pay for transactions:

[[File:SendPolaswell.jpg|400px]]

And let's have a look at the result in Polygonscan, the main differences with the token transaction we did before are:

# We did not interact with a POL smart contract. POL is the native currency and it gets transferred directly.
# The Value of the transaction is the value of POL sent.

[[File:TransactionPOL.jpg|800px]]

The Polygon network is very cheap and efficient, we will use this POL to pay for transactions in the next quest. [[Tutorials:Swap_tokens_for_Pol_Using_Metamask | Swap tokens for Pol Using Metamask]]

Tutorials:Swap tokens for Pol Using Metamask

2026-01-12T03:19:24Z

Mediawiki:

=Swap Tokens for POL Using Metamask=

We can swap tokens for POL using Uniswap, or directly in Metamask.
Let's swap the 141 '''Summer''' tokens for '''POL''' in Metamask, (we will use Uniswap in the next Quest.)

Click on the token's name to select it:

[[File:Swaptokens4pol01.jpg|600px]]

Click on the "Swap" tab and select "Max" under Summer token's name to swap all Summer. Metamask quotes 1 Summer token = 0.007343 POL

Notice that this quote includes a 0.875% Metamask Fee

Apart from this, the transaction will cost $0.01 in Gas fees.

[[File:Swaptokens4pol02.jpg|600px]]

Now we have 1.491 POL and no tokens.

[[File:Swaptokens4pol04.jpg|600px]]

Click on the Activity Tab to see the transaction:

[[File:Swaptokens4pol05.jpg|600px]]

Click on the transaction and choose: '''View on Block Explorer'''

[[File:Swaptokens4pol06.jpg|600px]]

Notice:

Transaction Action: We swapped 141.39 summer tokens for 1.0474607 POL via MetaMask
Including Fee: 0.00916 POL

We interacted with Metamask's Swap Router smart contract.

'''Exercise:'''

Using the Transaction Hash:

0xd49248b13299db0094c8666aa7f027df1e44edcef7c3a706e451b615b2b60a94

Review the transaction in [https://polygonscan.com/ Polygonscan] and find the Metamask Swap Router contract address.

In the next tutorial [[Tutorials:Swap_tokens_for_Pol_Using_Uniswap | Swap tokens for POL using Uniswap]] we will see another smart contract in action.

Tutorials:Add Tokens to Metamask

2026-01-12T03:11:33Z

Mediawiki:

=Add Tokens to Metamask=

Now let's review the Summer tokens transaction from the point of view of the receiving address. The first thing to notice is that
Metamask in the receiving address doesn't show anything.

[[File:Transaction09import.jpg|600px]]

You have to Import the tokens for Metamask to know that you have them.

[[File:Import.jpg|300px]]

* Select Custom Token
* Metamask warns of potential scam tokens
* Use the Polygon Summer token contract address:

[[File:Importaddtokencontractaddress.jpg|300px]]

Metamask asks for confirmation:

[[File:Importaddtokencontractaddress02.jpg|300px]]

Now we can see the tokens in our wallet, notice the Polygon symbol besides the Summer token icon, indicating that this is a Polygon token.

==Using the Seasonal Tokens website to Import Tokens==

As an example of Web3 functionality, let's use the Seasonal Tokens website to do the operation of importing tokens automatically.
This makes it easier to import the four tokens.

# Visit [https://seasonaltokens.org/ www.seasonaltokens.org]
# Scroll to the bottom of the page
# Click on Add Tokens to Metamask
# Confirm

If we are connected to the Polygon network, the website will add the Polygon tokens. And if we are connected to Ethereum it adds the Ethereum tokens.

[[File:STorgpol.png|600px]][[File:STorgeth.png|600px]]

Let's add the Polygon and Ethereum tokens to metamask. Notice that all the tokens are shown, even with balance zero. Metamask still shows that the total balance in the wallet is $0.00 USD. This number adds the value of all your assets in the Ethereum OR Polygon network, depending on which network you are connected to.

[[File:MMshowing all tokens but balance zero.jpg|600px]]

==Connect / Disconnect==

Sometimes the website keeps connected to one network even if you change your wallet from one network to another.

You have to disconnect the wallet from the website and re connect again to change networks.

# Click on the 3 dots to the right of '''Account 1'''
# Select All Permissions
# Select the website
# Click on Disconnect

[[File:TD13.png|600px]]

In the next tutorial [[Tutorials:POL_transaction | POL Transaction]] we will review a transaction sending Polygon.

Tutorials:Sample Transaction

2026-01-12T03:07:12Z

Mediawiki:

=Transactions=

In this tutorial we will learn how to review a transaction in Polygonscan. Let's send some tokens to our wallet to observe the transaction details:

''(The Metamask interface shown is an old model)''

[[File:Transaction01.jpg|600px]]

We have 141 Summer tokens and 105 Winter tokens, and 1.26 POL to pay for transactions.

[[File:Transaction02.jpg|400px]]

'''Notice:'''

Metamask will inform you of the cost of the transaction (0.002939 POL) and ask for confirmation.

[[File:Transaction03.jpg|400px]]

The transaction is sent, and while it says "Pending" you can see the Cancel and Speed up Buttons.

If you want the transaction to occur faster, you can add a higher transaction fee. Normally Metamask will suggest the fee based on current network conditions, but you can set the fee manually.

The price of GAS changes with demand, if lots of people want to speed up the transactions, they pay more for the transactions rising the GAS price.

[[File:Transaction04.jpg|400px]]

Once the transaction is confirmed you can't revert it. Click on the transaction to see the summary.

[[File:Transaction06.jpg|400px]]

Lets click on View on block explorer to open the transaction in [https://polygonscan.com Polygonscan].

[[File:Transaction07.jpg|800px]]

==Review Transaction Data:==

* First we have the Transaction Hash, that string identifies the transaction, anybody with this string can find the transaction using Polygonscan or any other Polygon block explorer.

You can see that 151 blocks have been added to the Polygon blockchain in about 5 minutes, that is a whole lot more than Bitcoin or Ethereum.

* Then we have the transaction Action: Transfer of 141 Summer to our 0xF0E...312 test address.

* We see that we interacted with the Summer token smart contract in Polygon:

''' 0xdd28ec6b06983d01d37dbd9ab581d8d884d95264'''

This smart contract is responsible for changing the relevant account balances.

* Then we have the POL value of the transaction. (zero POL in this case)

* And the Transaction Fee and Gas Price.

=Slippage=

Notice that the Gas Price turned out to be less than the amount quoted by Metamask when we were doing the transaction.

This is called "slippage", in very active cryptos the Gas price or even the tokens prices are changing all the time, and it is possible that the value of a token or the gas in this case has changed from the moment the quote was made to the moment the transaction was executed.

In this case it was in our favor, and Polygon Gas prices are so low that it doesn't matter much. But this can be an issue with the Tokens prices.

For this reason you can set up the maximum slippage you will accept in Metamask. In the Swaps Tab you can click on the Gear icon to adjust the Slippage tolerance.

If the price of a token is higher than your Slippage tolerance, the transaction will not be executed.

[[File:Transaction slippage.jpg|800px]]

In the next tutorial [[Tutorials:Add_Tokens_to_Metamask | Add Tokens to Metamask]] we will observe the transaction from the point of view of the receiving address.

We will see that Metamask can detect automatically only ETH or POL, but the tokens have to be added manually.

Mediawiki: /* Introduction */

[[File:TestDrive.jpg |350px |right]]

In this guided tour of Web 3 technology you will learn how to:

----

* Stay safe in Web 3
* Install and use Metamask wallet
* Do small test transactions and view them on a block explorer
* Understand smart contracts and approvals

You can follow the tutorials at your own pace. If you need assistance, please open a support ticket in our Discord server:

[https://welcome.seasonaltokens.org/join-our-discord-server/ Support Ticket]

=Introduction=

# [[Tutorials:b01e | Web3 Introduction ]]
# [[Tutorials:75c1 | Token Ecosystem ]]
# [[Tutorials:878c | Install Metamask ]]
# [[Tutorials:04bb | Private Keys and Public Address ]]
# [[Tutorials:9169 | Layer II ]]

=Transactions=

# [[Tutorials:82e0 | Sample Transaction ]]
# [[Tutorials:a744 | Add Tokens to Metamask ]]
# [[Tutorials:0204 | POL transaction ]]
# [[Tutorials:8717 | Swap tokens for Pol Using Metamask ]]
# [[Tutorials:8718 | Swap tokens for Pol Using Uniswap ]]
# [[Tutorials:9adf | Front-running Bots ]]

=Smart Contracts=

# [[Tutorials:8d4f | Read Contract ]]
# [[Tutorials:19d6 | Mint Transaction ]]

=Uniswap DEX=

# [[Tutorials:3407 | Swap Pol For Tokens ]]
# [[Tutorials:3408 | Uniswap Liquidity Pools ]]
# [[Tutorials:c6b6 | Uniswap Liquidity Pools II ]]
# [[Tutorials:baa3 | Swap Summer for Autumn Tokens in Metamask]]
# [[Tutorials:baa4 | Swap Autumn for Summer Tokens in Uniswap]]

=Farming=

# [[Tutorials:df9c | Creating a Liquidity Position ]]
# [[Tutorials:46bd | Deposit the Liquidity Position in the Farm ]]

=NFT:=

# [[About NFT |About NFTs]]
# [[NFT_token_contract | Interact directly with the TOKEN CONTRACT ]]

Tutorials:Layer II

2026-01-09T02:00:56Z

Mediawiki:

In the tutorials we will be using the Polygon network only because of the very low fees.

=Layer II Networks. Bridges and Wrapped Tokens=

Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.

The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.

=Polygon Bridge and Wrapped Tokens=

The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge. Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.

If you send tokens from one network address to an address in another network you will loose them.

The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology.

'''Example:''' Seasonal Tokens are produced on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.

To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.

''This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.''

=Bridge Tokens from one Network to Another=

We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.
For example: https://portal.polygon.technology/bridge

Suppose we want to send Winter tokens from the Ethereum to the Polygon network. In Metamask click in the "SWAP" tab to get:

[[File:Bridge 1.png|400px]]

We will choose Winter in Ethereum as the source, and Winter in Polygon as the destination.

[[File:Bridge 2.png|400px]]

This swap will in fact use the Polygon Bridge in order to "send" the tokens from one network to another.

[[File:Bridge 3.png|400px]]

=Arbitrage=

Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap from one network to the other.

Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".

2026-01-09T01:35:18Z

Mediawiki:

=Layer II Networks. Bridges and Wrapped Tokens=

Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.

The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.

==Introduction to the Polygon Bridge and Wrapped Tokens==

The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.

If you send tokens from one network address to an address in another network you will loose them.

The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology.

Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.

In the case of '''Seasonal Tokens''', they are produced through proof-of-work mining on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.

To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.

This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.

= Bridge Tokens from one Network to Another=

We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.
For example: https://portal.polygon.technology/bridge

Suppose we want to send Winter tokens from the Ethereum to the Polygon network. In Metamask click in the "SWAP" tab to get:

[[File:Bridge 1.png|400px]]

We will choose Winter in Ethereum as the source, and Winter in Polygon as the destination.

[[File:Bridge 2.png|400px]]

This swap will in fact use the Polygon Bridge in order to "send" the tokens from one network to another.

[[File:Bridge 3.png|400px]]

Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap
from one network to the other.

=Arbitrage=

Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".