Sifchain AMA Summary with Decentralized Club ✔️
Dear, Community,
Welcome to the recap of our AMA with Sifchain.
Our vibrant and enthusiastic community had a lot of questions to ask. To those who want to know quickly what Sifchain is about, we are sure this recap is gonna help you. So without further ado, continue reading 😉
✔️Introduction with Sifchain :👉
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
First question of Introduction :
Q1. Can you provide a brief introduction to Sifchain + the core team behind it?
SCNFLK:
Sure. Sifchain is the world’s first omni-chain digital asset exchange. As a decentralized exchange (DEX), we believe that cross-chain interoperability should be infinitely scalable and that it should be a standard across our industry. We treat other exchanges as partners rather than competitors, sharing trading vollume and liquidity to bring more prosperity to Sifchain’s community.
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. We believe that building cross-chain liquidity will be fundamental to the future of the blockchain industry: an expectation, not a feature.
Our technical team has people from Coinbase, Cosmos, Polkadot, Tezos, and Thorchain — among others.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Very Impressive👍👍
Next question :
Q2. How is Sifchain better than current leading Ethereum based DEXes?
SCNFLK:
Ethereum is currently home to the largest collection of decentralized finance (DeFi) app ecosystem in the world. However, it is starting to show its wear as a dated technology that is in dire need of upgrades. The Ethereum Foundation plans to slowly release fixes with Ethereum 2.0 but those changes are not scheduled to take full effect until 2022 or later.
In the meantime, Ethereum DeFi apps continue to charge exorbitant fees that limit participation to large spenders and whales. While the profits in recent DeFi successes like Curve pool are impressive, Ethereum’s transaction fees make it prohibitively expensive for users. These transaction fees range from 1% to 7% for transactions of $1-$40. These fees are charged per trade, where multiple transactions are needed for each product in a multi-protocol compostable trade.
Meanwhile, the Cosmos Network is reaching an inflection point for its growth. Cosmos SDK chains are 100x more efficient than Ethereum blockchains in terms of transactions per second (TPS) and block space.
Because Sifchain is built on Cosmos SDK, it is 100x more efficient than Ethereum inherently. Tendermint is the consensus algorithm for Sifchain (and all Cosmos SDK chains) and it simply processes transactions at about $0.01 from our benchmarks whereas the average Ethereum transaction is $1-$10 in fees.
Done.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Amazing👍👍
Next question :
Q3. How does Continuous Liquidity Pool works?
SCNFLK:
Sounds good.
Continuous Liquidity Pools (CLP) are used in parallel with an order book system to enable trading on Sifchain. CLPs are part of our asymmetric liquidity model, which means that people can add liquidity to just one side of a token pair instead of to both sides equally (which is how liquidity works in other popular decentralized exchanges today).
More information is available through the article above.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Amazing 😍 it shows a lot of transparency
Last question of Introduction :
Q4. What is further planned for Sifchain in 2021 ?
SCNFLK:
February 3rd is a big day. We’ll be launching our BetaNet:
We will launch our public token sale on the same day. KYC registrations are taking place currently, until January 29th.
This means our native token, Rowan, will have utility value from day one:
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Thank you @SCNFLK ,super insightful and very easy to understand.
🐧Community ask Questions by Twitter ✔️
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
First question from twitter
“SifDAO, Voting & Governance, Token Sale, BetaNet Launch, Ability to stake & delegate and earn rewards” I see this 5 in your roadmap in January 2021 with no check and the month of January is coming to end, when can we able to see this 5 features?
From @auvantam1
SCNFLK:
All of these features are available when the BetaNet and public token sale launch on the same day. As previously mentioned, there’s quite a lot of utility value in Rowan — Sifchain’s native token.
Additionally, running a validator is an easy process due to our user-centric model using Kubernetes (K8S)😎
https://medium.com/sifchain-finance/validator-in-a-box-plug-and-play-passive-income-generator-47f4d26e428e?source=collection_home---4------8-----------------------
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Second question from twitter
Sifchain exchange is expected to make transactions 100 times more efficient than other DEXs, whether that efficiency will lead to certain limitations such as user data security or making the system vulnerable by hacker?
From @Nanacy86635239
SCNFLK:
We have a very strong focus on security. Our engineers pride themselves on creating a thorough test suite for every feature. We then have test engineers who enhance each test suite with a larger battery of standard tests (unit, integration, etc.) as well as more complicated end-to-end tests or testing harnesses that can spin up critical infrastructure for mocks (for example, standing up a service that should be running in the background adjacent to a major few feature).
Then, we’ve got auditors on top of that and an internal red team focused on attacking the network. Before mainnet, we’ll launch an external red team in the form of bounties.
How do we prevent front running? First of all, Sifchain’s commit-reveal scheme hides the transaction details so validators cannot differentiate. Secondly, the Sifchain protocol forces validators to sort transactions by descending fee, making it uneconomical to run a front running-attack.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Third question from twitter:
Sifchain allows traders to use margin in their transactions by borrowing from the liquidity pool. Profit rates are set based on market demand and liquidity provision. How to increase this profit for liquidity providers?
From @Gia51033071
SCNFLK:
For margin trading, traders are able to borrow liquidity from a CLP. This allows them to “long” cryptocurrency on margin, leveraging the value of the cryptocurrency they already own to increase their investment size. Thus, traders can potentially magnify returns, assuming the value of the investment rises. Margin trading provides a new revenue source for liquidity providers (lending) and increases revenue from trading fees.
Done.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Fourth question from twitter:
I couldn’t help but notice how beautiful the artwork for your page and medium news is, could you tell us more about the person or team behind it? Are you looking forward to hire more artist to make your page more striking to new users?
From @meml97
SCNFLK:
The blessings of Sif bring us our art direction 💫
We’re inspired by Sif:
https://en.wikipedia.org/wiki/Sif
Done.
| DK | 🌿 | Never PM/DM First 🐞 Decentralized Club:
Fifth question from twitter:
What will be the characteristics of the SifDAO model for governance created by SifChain? What benefits will it provide to users and how will it differ from other DAOs? Will there be any native tokens designed for governance only?
From @mujeeb2215
SCNFLK:
SifDAO (decentralized autonomous organization) is detailed in this article:
Our native tokens, Rowan, have the following key points:
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.
✍️ Telegram live Questions answered by Sifchain ✔
Marisol Wilkinson:
Can you tell us about the motivation and benefits for investors to keep the ROWAN token in the long run? What plans do you have to help drive the demand and scarcity of the ROWAN token?
SCNFLK:
Holding Rowan is a way to earn passive income. The utility value of Rowan in Sifchain’s token economy causes people to buy and hold, instead of selling just for short term profits.
BEST QUESTION:
I see Sifchain has a referral program. Can you please tell us what the provisions of the program are and what are the benefits for us if we contribute to it ??
SCNFLK:
In our public token sale, we’re launching a referral program.
We will be rewarding the top three purchasers of eRowan in our public token sale, those who refer the top three purchasers, those who referred the referrers, up to five degrees of separation. By the end of the Token Sale, if you are one of the top 3 purchasers or are connected within 5 degrees of separation to one of the top 3 purchasers, you’ll receive token rewards.
Bogota:
Could you tell me a little bit about Your roadmap going forward, how do you plan onboarding users and gaining more adoption for Your project?
SCNFLK:
Short term goals: Release token swap UI, product documentation, and launch mainnet with strong community support and a lot of liquidity.
Medium Term goals: Margin trading and limit orders (by March / April), adding additional blockchain pegs (4 per month starting in Q2 2021).
Here’s an example of what we mean by “Peg” and it’s a notable success case with Cosmos:
https://blog.cosmos.network/sifchain-announces-peggy-cosmos-ethereum-cross-chain-bridge-eeb46a8f91db
Done.
HARD Working MAN:
Decentralized exchanges are in a better position to maintain sufficient liquidity in the market at all times, by working on Blockchains like Ethereum, decentralized exchanges face a challenge with transaction execution times as well as their commissions, which makes it trading these exchanges is expensive and complicated. For traders, as Sifchain as a decentralized exchange and under a Thorchain and Cosmos infrastructure, can it cover the solution for these problems in general and offer the trader a better experience?
SCNFLK:
First of all, here’s the problem with digital asset exchanges currently and why Sifchain is differentiated…
Right now, centralized exchanges have notable problems: 1) limited lending and staking offering 2) region blocking and trade censorship 3) fragmented liquidity due to product disparity between exchanges 4) limited product, swaps, and futures diversity.
Decentralized exchanges have problems which include: 1) single chain 2) not market maker and trader friendly 3) poor scalability, throughput, trade turnover rate, derivative market structure 4) unfriendly fees and low volume per trade.
Sifchain addresses the issues above and we believe cross-chain interoperability should be a standard, not a feature.
Secondly, Thorchain is a reference for Sifchain but we have many key differences: