Mar 31, 2021
Recap of the Sifchain AMA with Blockchain Space
On Wednesday, March 31st, we had the pleasure to welcome to our Telegram chat:
SCNFLK, The Marketing Lead at Sifchain.
We asked him questions about the development of Sifchain.
INTRODUCTION
Q~ Give a brief introduction about your role in Sifchain and the Sifchain project?
A~ Sifchain seeks to be the world’s first omni-chain decentralized exchange (DEX) for digital assets. No other projects are trying to make omni-chain an industry standard. The future of Sifchain is a Decentralized Autonomous Organization (DAO) and for SifDAO and other DAOs to self-sustain, they need access to massive capital. Sifchain’s goal is for new blockchains to consider cross-chain integration as essential as a wallet or block explorer. Liquidity from all cryptocurrencies can then be accessed on-chain, allowing the coordinated deployment of capital from all cryptocurrencies by DAOs. I have been leading the marketing team at Sifchain.
Q~ What are the essential features of Sifchain to make it relevant in the Blockchain Industry?
A~ Omni-chain is an infinite scale of cross-chain interoperability. Since no other projects have this vision, Sifchain is trying to solve an ambitious solution which will make the world of blockchain more democratized.
Liquidity providers earn income by depositing any token Sifchain supports into the appropriate Continuous Liquidity Pool:
They can add asymmetrically, which means that they can add only Rowan or only “TKN” for any token:
Q~ What are the usecases and tokenomics of the $ROWAN token?
A~ The main points of Rowan are :
1. Rowan is the governance token for Sifchain. Post-MainNet, all protocol changes are to be voted on by holders of Rowan. Voting weight will be proportional to the amount of tokens held. The governance token of SifDAO is Rowan.
2. Rowan secures the network — it is provided to validators from protocol emissions, also known as block rewards. Validators stake Rowan to participate in network consensus.
3. Rowan is also the settlement token for Sifchain. Traders must directly or indirectly purchase Rowan in order to execute trades against CLPs, ensuring demand for the token.
The utility value of Rowan and ways to earn rewards through it are detailed in this article:
QUESTIONS FROM BITCOINTALK
Q~ What features have you integrated into the Sifchain omni chain DEX to make it 100x more efficient like the current leading Ethereum-based DEXes like Uniswap, 1inch and the likes, what advantages will you offer and how can we users benefit?
A~ Decentralized finance is broken and it’s an Ethereum problem. If you trade with high fees and slow transactions, it’s likely because Ethereum is home to the largest collection of decentralized finance (DeFi) applications in the world. The Ethereum network is both inefficient and overloaded, which is why they charge exorbitant fees that limit participation to large spenders and “whales.”
The market tolerates Ethereum’s fees only because there is no consensus alternative. As Ethereum declines, the Cosmos network is reaching an inflection point. Built with the Cosmos Software Development Kit (SDK) and Inter-Blockchain Communication Protocol (IBC), Sifchain offers lower transaction fees and higher transaction speeds compared to leading Ethereum-based DEXs like Uniswap.
The IBC can connect any Cosmos SDK blockchain to another. Applications include successful DeFi components like Thorchain’s cross-chain DEX, Kava’s Collateralized Debt Position (CDP), E-money’s token fiat currency platform, or Terra’s $100M+ stablecoin. They each have their own blockchain with unique tokenomics that support tokens with $10M-$100M in market capitalization.
Q~ There are a couple of independent projects targeting cross-chain with Ethereum but none trying to make omni-chain a standard, but Sifchain says they will capture the entire $450B+ of market cap across all cryptocurrencies, How will this be made possible, does the Sifchain blockchain development team have enough experience in building this omni-chain DEX?
A~ Sifchain’s technical team has experience working at firms like Coinbase, Cosmos, Polkadot, Tezos, and Thorchain. Our CEO, Jazear Brooks, was not just involved in the early architecture on Thorchain; he supported development on Cosmos’s official Ethereum <> Cosmos bridge for the Interchain Foundation and the Polkadot <> Ethereum bridge for Web 3.
QUESTIONS FROM TWITTER
Q~ The criteria design of Sifchain says that token “secures the network”, so Considering this can you explain how your token is able to provide security capacities?
A~ Simply put, to participate in the network, one must hold Rowan. For example, validators and delegators must hold Rowan.
Q~ I read that Sifchain is using a combination of CLPs and automated market making (AMM) to determine asset prices, why not use Price oracles as its done on other DEXes, is this more reliable?
A~ Liquidity pools are better than external oracles when determining price. Price oracles are centralized points of failure, relying on incomplete and asymmetric information which makes exploitation easy in the relatively illiquid DeFi markets.
Q~ Sifchainʼs economic system comprises two subsystems — the Validator Subsystem (V), and the Liquidity Provider Subsystem (LP). So can you explain each with their main role & how are the agents able to earn from these subsystems?
A~ Validators provide crypto-economic security and they must stake Rowan in order to do so. Traders can trust that Sifchain’s blockchain data is accurate because its validators forfeit their staked Rowan as per the Tendermint Proof of Stake Consensus Algorithm if they produce incorrect blocks.
Rowan is the settlement token for all of Sifchain’s liquidity pools. Therefore, all liquidity pools contain an external asset like ETH or MKR and Rowan. Swaps between two external assets require two swaps against two liquidity pools.
More information is available here:
QUESTIONS FROM TELEGRAM
Q~ How do you plan to spread awareness about your project in different countries where English is not spoken well? Do you have local communities for them to let them better understand about your project?
A~ We have a variety of local language channels and groups. If you look on the bottom of each Medium article, you’ll see a full list:
Q~ How can users stay updated with this project? Are there channels, including local communities where users can get the latest updates?
A~ Besides our Telegram, Discord and Github are great resources for techies.
Q~ What has been the best milestone?
A~ Sifchain’s best milestones are to come, hopefully with a successful release of product features!
So far, Sifchain has been focused on launching the network for the decentralized exchange, which happened at the time of the public token sale.
The public token sale raised $26.4 million, which is a great deal of money for a company to build with.
Q~ Will the Sifchain DEX also support both margin trading and limit orders?
A~ Yes.
Q~ For now, to take full advantage of Sifchain DEX, you need to have a Keplr wallet to manage assets in Sifchain and a MetaMask to manage assets in ETH. In the future will Sifchain be compatible with other wallets like Trust or network compatible wallets like BSC or POLKADOT?
A~ Compatibility with various wallets and exchanges is part of the plan.
CONCLUSION
It’s really nice having the Sifchain project in here!!!
You can check out their Website for more details. You can also follow them on Telegram and Twitter to keep up to date with all things relating to Sifchain.
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