【AEX AMA Recap】The beauty of cross-chain transactions, Sifchain foresees the future of DeFi
Guest: Luke Kim, Marketing and Business Development of @sifchain
Host：Ada, Head of AEX Brand Team
AMA Time: 3/12 11:00(UTC+8)
【Q&A: Host&Guest session】
Q1. Sifchain was largely inspired by THORChain. Can you introduce Sifchain? What is the difference between Sifchain and THORChain?
Luke Kim: Sifchain is the world’s first omni-chain decentralized exchange (DEX) for digital assets. No other projects are trying to make omni-chain an industry standard.
Sifchain offers features of high performing centralized exchanges previously unavailable in the DeFi world. Margin trading and limit order features are to be added by mid-2021. Sifchain uses both an order book and Continuous Liquidity Pools (CLP) for trade completion.
Thorchain was an inspiration for Sifchain but we have some key differences which are described in this article: https://medium.com/sifchain-finance/key-differences-sifchain-thorchain-db6c47127706?source=collection_home---4------21-----------------------
Information about CLPs can be found in this article: https://medium.com/sifchain-finance/what-is-a-continuous-liquidity-pool-clp-a986df964814?source=collection_home---4------19-----------------------
2. What kind of experiences do Sifchain teammates have?
Luke Kim: 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.
3. What problems do you think DeFi currently has? What problems can Sifchain solve? What convenience will it bring to users?
Luke Kim: Decentralized finance (DeFi) 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.”
Sifchain, built on Cosmos, is 100 times more efficient and interoperable with blockchains including Bitcoin. The market tolerates Ethereum’s fees only because there is no consensus alternative. As Ethereum declines, the Cosmos network is reaching an inflection point.
4. Sifchain is based on Cosmos. Can you introduce Cosmos and why Sifchain prefers Cosmos over Ethereum?
Luke Kim: 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, and Terra’s $100M+ stablecoin. They each have their own blockchain with unique tokenomics that support tokens with $10M-$100M in market capitalization.
We look to Peggy as the way to omni-chain compatibility and, the more tokens that are added to Sifchain through “peg zones,” the more powerful Sifchain gets. In its maturity, Sifchain will be a central repository where people can go to to swap assets across 25+ different blockchains. Sifchain is your solution for low fees, fast transactions, and ultimate flexibility in getting the exact assets you are after.
Check out a detailed article about Sifchain and Peggy here: https://blog.cosmos.network/sifchain-announces-peggy-cosmos-ethereum-cross-chain-bridge-eeb46a8f91db
5. What kind of utility is in Rowan, Sifchain’s native token?
Luke Kim: 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.
Check out this article about the utility of Rowan: https://medium.com/sifchain-finance/uses-for-rowan-the-polyvalent-token-for-omni-chain-decentralized-exchange-dex-3207e7f70f02?source=collection_home---4------12-----------------------
6. What are Sifchain’s token distribution plans?
Luke Kim: By the way, you can stake tokens easily through Keplr: https://wallet.keplr.app/#/dashboard
And you can run your own validator in less than 30 minutes:
7. What are the fundraising milestones achieved by Sifchain and how will resources be used for the development of both ecosystem and technology?
Luke Kim: Sifchain’s $3.5 million Pre-Functionality Token Sale Agreement seed raise in August of 2020 was led by NGC Ventures with participation from Alameda Research, Mechanism Capital, AU21 Capital, Bitscale, and others.
Two weeks ago, we concluded our public token sale which raised over $26 million worth of USDT.
Our priority is to keep developing our product, satisfying the curiosity of early adopters and earning trust within the global blockchain industry.
8. What can we look forward to in Sifchain’s MainNet? How can people get involved with BetaNet?
Luke Kim: We will announce details about our MainNet soon. To get involved as a technical community member, check out our Discord and Github:
By the way, we have some articles in Chinese as well: https://sifchainasia.medium.com/
9. What do you think is the future development direction of DeFi? And what is Sifchain’s next plan?
Luke Kim: DeFi will diversify away from Ethereum. That’s for sure.
Cross-chain will be considered primitive in comparison to omni-chain.
Projects that deal with cross-chain interoperability through the Ethereum network will find themselves behind.
Sifchain will deliver better performance, lower fees, and more sophisticated features to traders around the world through the first ever omni-chain decentralized exchange (DEX).
【Free Q &A session】
Q1：Who do you think sifchian’s competitors are among the many projects in defi? How can sifchain successfully stand out and solve the key pain points in the defi market?
Luke Kim: Since Sifchain is a crypto-currency exchange, you’d expect us to consider other exchanges to be competitors. However, we treat them more as collaborators. We intend to integrate with exchanges in order to share trading volume and liquidity — both centralized exchanges and decentralized exchanges.
Q2：Rowan is the governance token of sifchain. What are the functions of the token? Will token holders have any benefits？
Luke Kim: There are many benefits to holding Rowan and you can check us out on Coinmarketcap: https://coinmarketcap.com/currencies/sifchain/
If you want to get a detailed overview of Sifchain’s token utility, check out this article: https://medium.com/sifchain-finance/uses-for-rowan-the-polyvalent-token-for-omni-chain-decentralized-exchange-dex-3207e7f70f02
Q3：What are the technologies behind sifchain? Has its function and security been verified?
Luke Kim: We have detailed information about our product on Medium: https://medium.com/sifchain-finance
Check out our DEX for yourself. It’s been working great and BetaNet will become MainNet as soon as possible!
Q4：What is the overall development progress of sifchain project? Do you have any plans for the future?
Luke Kim: In short, we are intent on adding sophisticated trading features on our DEX and adding an infinite scale of crypto-currencies in the name of building the world’s first omni-chain DEX.
Q5：Sifcain has just completed $3.5 million of financing and has been favored by well-known institutions in the circle. In what ways will these institutions help sifcain?
Luke Kim: Our network of investors has been hugely helpful in getting us connected to the right communities and the right talent. It’s been a great ride so far and we’re all on the same page about building for a long term future — in terms of both community growth and prosperity for each individual supporter of Sifchain.
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