Sifchain x Satoshi Club AMA Recap from 9th of November
Sifchain is the brainchild of Sif, the Norse goddess of earth, agriculture, fertility, family, and marriage.Today we would like to tell you about the AMA session with our friends from Sifchain. The AMA took place on November 9, our guest was @Omni_Skyfather.
The total reward pool was 800$ and was divided into three parts. In this AMA Recap we will try to summarize some of the most interesting points for you.
PART 1, INTRODUCTION AND COMMUNITY QUESTIONS
Mary | Satoshi Club: Hello,Satoshi Club! We are happy to announce our AMA session with Sifchain! @Omni_Skyfather welcome to Satoshi Club.
Odin Borson: Great, exciting to be here.
Mary | Satoshi Club: Please, introduce yourself and Sifchain project.
Odin Borson: I am a pseudonymous entity representing https://sifchain.finance/our-team/
We try to keep it focused on the team as opposed to individual members, but it’s no secret that a lot of our credibility lies with the fact that we have so many members from the Thorchain team, including its early architect. This gives us a lot of credibility and experience with cross-chain software and AMM token design.
Jazear did not just early architecture on Thorchain but helped with development on Cosmos’s official Ethereum <> Cosmos bridge for the Interchain Foundation and the Polkadot <> Ethereum bridge for Web 3 so we really know cross-chain.
Beyond that, our team has a lot of experience with other crypto projects including a YC backed crypto startup and multiple crypto exchanges. Purely on the dev side, we have over a dozen engineers, most of whom have prior blockchain dev experience and strong business development or marketing experience from many major projects for our operations team.
D. | Satoshi Club: Thorchain is also your project?
Odin Borson: We have team overlap, there’s a horde of anonymous people on Thorchain.
Mary | Satoshi Club: Whos idea was to create Sifchain?
Odin Borson: A few of us came together, saw the need, and designed it together.
Q1 from Telegram user @wicksterr
You process a lot of more transactions than ETH DEXes, that’s true. Cosmos allow that. However, is this enough to be successful? There are many blockchains which try to compete with ETH for DEXes, like Tron for example, but with not so much success. What will you do differently?
Odin Borson: 1. There are a few cross-chain projects but no omni-chain projects. We would be the only place to actually trade across all of the major cryptocurrency blockchains.
2. We actually let you trade with the liquidity from other tokens. It’s not just about letting people express a trade related to a cryptocurrency on another chain. You can just do that with a price oracle if you want. We are focused on letting people actually take the tokens they earned from previous token sales and use those for cross chain liquidity. A lot of cross chain solutions are still nascent in this area. And we know most of them. None of them work for the 20 to 25 chains we want to support.
3. We offer so much more. There also aren’t any good platforms to do margin, limit orders, and swaps on the same self-sovereign chain.
4. We plan to offer other features besides the ones we have publicly listed. Actually, we are building Sifchain to be more of a framework upon which we can deploy arbitrary crypto economic models. We just need to get the basic infrastructure down first.
Mary | Satoshi Club: You really offer a lot) Can you explain in details how i can use tokens earned from previous token sales for cross chain liquidity?
Odin Borson: Yeah sure. We are launching Sifchain with Ethereum support so it will work out of the box with any ERC-20 token you buy. For each of our target blockchains (for example, Stellar, Cardano, and Litecoin), we will build a cross-chain bridge. When we do, people will be able to use those on Sifchain as well.
The process is the same for them all, you can deposit a native token into a secure lockup group and mint a pegged token on the Cosmos Network, where Sifchain resides. You can always go in the reverse direction to unlock any tokens or take away any gains you made from trading on Sifchain.
D. | Satoshi Club: Sounds fantastic! i like it. but you need somehow force most of people to use all of this. because they don’t want to use anything except btc and eth.
Odin Borson: Well every block chain has its own community. Remember that projects like Polkadot, Cosmos, and Tezos are where Ethereum and Bitcoin used to be. I also think people underestimate the benefits of performance gains.
Mary | Satoshi Club: Yes, but it is hard for understanding from the beginning, this thing has to be user friendly, because most people will just ignore them.
Odin Borson: That’s true. We’ve got a lot of investment in UX that we are excited to share.
Here is one more
D. | Satoshi Club: What wallet we will able to use there?
Odin Borson: We’re targeting Metamask but you can use any Ethereum wallet for the Ethereum side. On the Sifchain side, we’re targeting Cosmos solutions like Keplr for wallet.
Q2 from Telegram user @vinniepu
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. This sounds beautiful and complex, but what exactly is the complexity theory? Was it applied in practice by other projects or it is just a theory for now?
Odin Borson: Complexity theory is the literally the theory of complex systems. It has been applied in many cases. Here is one of the most famous institutes on it https://en.m.wikipedia.org/wiki/Santa_Fe_Institute
It has been pretty important for market design https://en.m.wikipedia.org/wiki/Market_design
Mary | Satoshi Club: It’s already being used. Check out www.block.science for more or https://tokenengineeringcommunity.github.io/website/
Q3 from Telegram Username @PaoloMonte87
In the litepaper you state that tne CLP is used for trades directly involving Rowan, two CLPs are used for all other trades. So for example, the USDC:BTC internal price is calculated using the USDC:ROWAN and ROWAN:BTC CLPs. Does that mean the price can be different from external sources (other CeXes/Dexes/LPs)? Doesn’t that open the window to potential arbitrage exploits?
Odin Borson: All exchanges have arbitrage potential, we expect people to run arbitrage bots to keep prices roughly even. Actually, we encourage it! As for exploits, we are not as vulnerable as other exchanges.
Mary | Satoshi Club: So, how it will happen. Can you explain process? What i will need to do?
Odin Borson: Trades on Sifchain are priced using the CLP price, not an external exchange’s price. No external oracle can be manipulated to set the price for tokens swapped on Sifchain, like they can be for other exchanges like BzX. If Sifchain’s CLP price is different from the market’s price, someone will step in to swap. That’s natural arbitrage which we support.
Artificial arbitrage exploitation through a sandwich attack or a flash loan isn’t possible. If the attacker manipulates the price, he will have to pay that same price on Sifchain, resulting in no incentive to try it.
Q4 from Telegram Username @Jonahapagu
Sifchain is implementing a Hybrid Orderbook and CLP can you explain what components makes up your hybrid orderbook and why this is important to Sifchain?
Odin Borson: Sifchain limit orders are executed against the CLP. For example, if you set a limit order at 7950 and the price is 8k and then drops to 7900, your trade will be executed as a swap against the CLP with an average price of 7950 or less. This hybrid approach allows us to store liquidity in liquidity pools but still have limit orders at all. Limit orders by themselves are still precarious on DeFi platforms. You can get more liquidity for limit orders on a DEX by executing them against a liquidity pool than only against other limit orders or market orders.
This is important as a feature because it lets traders who use limit orders, which is most of them, express trades on Sifchain and those drives dramatically more trade volume to the platform.
Mary | Satoshi Club: So, in simple words, i would be able to use this orders on Sifchain DEX like i am using on CEX exchanges? Just it will be possibility that i will buy even cheaper, then my order was? Or i misunderstand?
Odin Borson: Yeah you got it.
Q5 from Telegram Username @reinleoken
With Rowan token as the governance token for Sifchain, can users purchase the token or would it only be given to validators as block reward?
Odin Borson: Users will be able to purchase the token. We will announce token sale plans soon.
Mary | Satoshi Club: Do you have any details you can share with us now? Or everything later?
Odin Borson: Well we’re going to share the details a bit later this month, the token sale will happen in November. It’s probably best that we make an official announcement than drip anything here.
Q6 from Telegram Username @konditer_rolex
I saw your ad on Cryptocurrencyjobs. You are looking for a chief of staff. Did you recruit the entire team by ad? Is there some core of the project? How many people are at the origin of Sifchain? And how many people are involved in the development of the project?
Odin Borson: We have a few engineers from Thorchain, a few from previous projects we’ve worked on, and a few from external sources. We have over a dozen engineers across blockchain, test, and front end, and devops (which we call chain ops). Then we have people working on marketing, operations, business development, and other functions.
If you are worried about outsiders participating versus a core team, this project isn’t for you. We are going to heavily scale development by both bringing on additional engineers and tapping into the community for collaboration across Gitcoin, grants, dev shop partnerships, and other vectors.
We expect this project to be a proper open source protocol where the entire community participates. We are actively looking to build up SifDao to own the entire operations of Sifchain and will give it some token allocation right at the start of the sale to do this.
PART 2, TELEGRAM COMMUNITY LIVE QUESTIONS
The chat was open for 80 seconds; a lot of questions were posted by Satoshi Club community. Our guest chose some of them.
Q1 from Telegram User @Gutike95
The other DEX exchangers of multiple chains have been developed with the Polkadot technology, allowing you great ease to do so, how did Sifchain Finance achieve interconnect the chains without it (Polkadot)?
Odin Borson: We are built on the Cosmos SDK framework but we have built interoperability to other chains. We are excited for Polkadot to be one we connect to eventually.
Q2 from Telegram User @Beterror203
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?
Odin Borson: Well Sifchain has the advantage of being 100x faster than Ethereum. That said, we need to build wallets, block explorers, and other tools to make it easy for people to use our platform. I think we’ve done a good job here.
Q3 from Telegram User @brodzonl
Sifchain will support Cross-chain transactions for 20–25 of the top blockchains. Will there be developed wallet for Sifchain so we can have one wallet for all blockchains?
Odin Borson: Maybe. We think the Asgardex wallet is best for this and may contribute to its development. https://github.com/thorchain/asgardex-electron
That said, Sifchain’s pegged tokens can all be traded in the same wallet, regardless of where the native token came from.
Q4 from Telegram User @adityaaryah
Sifchain reseted the testnet to implement cross-chain Ethereum transfers, I need help connecting to the Monkey Bars testnet, how do I go about it?
Odin Borson: This is definitely something you should ask on Discord https://discord.gg/wYeDHkYK
Q5 from Telegram User @araceley
Can you please share more details about the UI and architecture for cross-chain Ethereum transfers on the testnet?
Odin Borson: We shared a screenshot earlier. For the architecture, I recommend https://github.com/Sifchain/peggy/blob/develop/docs/sifchain-peggy-architecture-no-ibc.md
Q6 from Telegram User @leixagarcia
Reading the documentation of your project I came across two tokens inside Sifchain $Rowan and $SifDAO Can you explain us how each one will work? Which one will be the most important?
Odin Borson: Sifchain’s only token is Rowan, SifDAO is an organization, not a token.
Q7 from Telegram User @Boylut
When will your IBC protocol go live?
Odin Borson: We’ve been working on this for a while. Actually, IBC still has some room for development before it can be used in production by any chain, including the Cosmos Hub. I expect we will be one of the first to launch with it after checking with other Cosmos developers.
Q8 from Telegram User @Mantapkansuasana
Now, the token launch process is easy, but to develop the ecosystem, stabilize prices, expand the market is a challenge in every project? So what are your team first steps towards solving this problem? what is your plan to maintain token price & supply in the market?
Odin Borson: I like this question. We need to be viral about growth. We’d like to do a bunch of business development deals with successful traders to drive liquidity to the platform which will in turn drive up token price. Referral tools are sorely under used in the crypto space in our opinion.
Q9 from Telegram User @leixagarcia
The first time I came across the term omni-chain, I had Google it try to understand it, but it wasn’t totally clear. Can you explain it to us and mention its application within SifChain?
Odin Borson: Yeah sure. We are going to try to build bridges to 20 to 25 different blockchains. We think by the time we do that and open source the schematics, people will be able to easily add additional bridges on their road. If we can get all bridges to all other cryptocurrency’s, we will be omni chain.
Q10 from Telegram User @yzmoney
You have a lot of big backers and partners; how do you manage get them to invest in sifchain?
Odin Borson: They see what we see and what we hope you see as well, strong opportunity to advance the ecosystem.
PART 3, QUIZ AND INFO
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about Sifchain A link to a Quiz form were sent into the chat. Participants had 10 minutes to answer. 500$ were distributed between the winners.
For more information and future AMAs, join our Social Media channels:
English Telegram group: https://t.me/Satoshi_club
Russian Telegram group: https://t.me/satoshi_club_ru
Spanish Telegram group: https://t.me/satoshi_club_spanish
Telegram Channel: https://t.me/satoshi_club_channel
Sifchain Community: https://t.me/sifchain