Not completely clear of the fear-mongering just yet. A little green has been starting to show up in the markets this week. While Bitcoin is doing a great job of holding closer to $37,000 USD. ThetaFuel, WazirX, and Enjin have all returned moderate 25%+ returns to their holders this week as the majority of the market remains sideways with one day’s losses eating into another day’s gains. Our report this week is focused on a new DEX built on Cosmos called Sifchain.
Introduction
Sifchain is the world’s first omni-chain decentralized exchange built with the Cosmos SDK. Allowing Sifchain to process more transactions per second than Ethereum, making it a hundred times more efficient than the current leading options. Sifchain’s goal is for new blockchains to consider cross-chain integration via Bridges and other means as essential as elements like their wallet and block explorers. Liquidity from all cryptocurrencies can then be accessed on-chain, allowing the coordinated deployment of capital from all cryptocurrencies by combining the best elements of liquidity pools and order books for optimal order executions. Sifchain uses a two-way peg protocol to do quick swaps of pegged tokens. Sifchain will rethink the formulas used for liquidity pool algorithms to put in place adaptive AMMs suitable for both limit orders and token swaps. Sifchain also allows traders to use margin on their trades by borrowing from the liquidity pool. Interest is set based on market demand and liquidity supply. This increases returns for liquidity providers as a second revenue stream and swap fee rewards with increases in the size of swaps. Sifchain will support conditional market and limit orders, including stop loss and take profit orders. As well as amending limit orders that have been placed but not executed to enable trailing orders. Over time, Sifchain will support cross-chain transactions for over twenty of the top blockchains in hopes of becoming the leading value exchange platform in DeFi.
Unlike Bitcoin or Ethereum, which work on the probabilistic finality of blocks, the Cosmos SDK provides finality guarantees. This is important in relation to the confidence that a block will be finalized. Since Sifchain is built on Cosmos, this feature is automatically baked in, which is essential for cross-chain token swaps. To accomplish this cross-chain support, Sifchain uses a concept called ‘Peggy’ to create a pegged token model. This model is inspired by Cosmos’s peg zone model. Where a “peg zone” is an account-based blockchain that bridges ‘zones’ within Cosmos to external chains like Bitcoin or Ethereum. These peg zones are what allow assets to be easily transferred between Sifchain and the external chain. Peg zones can even be used for cross-chain transfers between a finalistic chain like Cosmos and probabilistic blockchains like Bitcoin. In Peggy’s mature state, not only does the usage of these pegged tokens create a very scalable design infrastructure, it also has unique crypto-economic incentives for its participants. Sifchain validators only need to run a “Sifnode” and can leave the cross-chain transaction labor to peg zone validators. Each peg zone validator only needs to run a node for the peg zone blockchain and their chosen external blockchain to enable sending assets to and from Sifchain through standard IBC channels…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
