Built with the Cosmos SDK, Sifchain processes substantially more transactions per second than Ethereum, making it 100x more efficient than the current leading DEXes. This equates to faster trades and lower fees.
Sifchain will target 20–25 blockchains (such as Ethereum and Stellar) for cross-chain integration. 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. Sifchain uses a two-way peg protocol which results in the swap of pegged tokens.
Sifchain combines the best elements of liquidity pools and order books for optimal order execution. While decentralized exchanges are currently dominated by liquidity pool algorithms optimized for token swaps, Sifchain will rethink the formulas used for liquidity pool algorithms from first principles of complexity theory to implement adaptive AMMs suitable to limit orders and token swaps alike.
Sifchain 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 in two ways — it provides interest as a second revenue stream in addition to swap fees and increases the size of swaps, and thus the size of swap fees.
Described in part above, we are rethinking the formulas used for liquidity pool algorithms from first principles of complexity theory to implement adaptive AMMs suitable to limit orders and token swaps alike. The Sifchain team is fortunate to be collaborating with some of the most adept market makers, traders, and complexity theorists in the cryptocurrency industry on this endeavor.
SifDAO will be launched alongside Rowan’s public sale and will receive a vested allocation of Rowan independent from the Sifchain team’s reserves. Our DAO community will play an ever expanding role in the direction of our exchange, and piece by piece, SifDAO will inherit the core team’s responsibilities until it is entirely responsible for Sifchain’s continued management.