Sifchain AMA Highlights #1
Dear Sifchain community,
Thank you for joining our first AMA hosted with Cryptonation! We really appreciate all your support; some really good and thoughtful questions were asked. For those who missed our AMA, here are the highlights below:
Can you please introduce yourself and give our community a bit of an understanding of what kind of business background you come from and how you have applied it to your roles within Sifchain.finance?
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 was not just involved in 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 are experts in cross-chain transactions.
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 development side, we have over a dozen engineers, most of whom have prior blockchain experience. They’re supported by strong business development and marketing experience over many major projects by our Operations team.
How do you see the next evolution and development direction of the DeFi track, and which sectors of the DeFi track are you optimistic about?
We see DeFi generalizing substantially. As we discussed at Avalanche MoneyDance, a lot of the crypto currency projects we see have slightly different AMM fee structures that don’t really need to be separate products.
We’re building Sifchain to get closest to what SBF called “smart AMMs” where LPs can manage their investments while influencing the LP fee formula through governance that dynamically changes as the market conditions change
We think this, paired with omni-chain liquidity is really the key to the future of DeFi growth. We see billions of dollars of liquidity lying in chains like XLM, XRP, XTZ, and BCH that are not yet participating in DeFi, but should be.
If we can get people to think of cross chain liquidity as an essential feature, like block explorers or wallets, we can make so much more liquidity available for swappers and improve people’s gains.
The only other thing we will comment on publicly here is that we also really like gaming and automated forms of money management. We will announce more on that later.
What is the business model of Sifchain? How does Sifchain generate revenue for development? Why should everyone use Sifchain?
The model is pretty simple. Rowan is a settlement token, like Rune or Bancor. Every liquidity pool on Sifchain is equally weighted with Rowan and an external currency like MKR or COMP. The total amount of value of Rowan on Sifchain is always 3x the value of external assets on Sifchain if market participants are economically rational.
This is because all external assets must be paired with an equal amount of Rowan on the opposite side of a liquidity pool. So, let’s say there are $10M worth of external assets, there must be another $10M worth of Rowan in the pools with them. Then the validators have to stake a combined $20M to secure that, or more.
Through some back of the envelope math, you can see that the TVL of Sifchain drives the price of Rowan directly. We had the Gauntlet team validate the model for Thorchain and Sifchain is quite similar.
Rowan LPs can earn swap fees and Rowan stakers can earn block rewards. During the first 12 weeks after launch, both (as well as swappers) can earn validator subsidy rewards too!
As for development, the token sale and Rowan in treasury will cover those, we will also make some of the Rowan available for the eventual DAO to do some development, independently of the core team. People should use Sifchain because it’s the fastest, cheapest way to swap Ethereum tokens. And will be for every other chain as well as we start adding bridges.
Read the full AMA summary here.
We will have many more AMAs coming up as the projects evolves, but you can always directly ask our team and engage with us on our social media channels!
Feel free to join our communities here:
🌾 Telegram: https://t.me/sifchain
🌾 Twitter: https://twitter.com/sifchain
🌾 Discord: https://discord.gg/fJhux6DKYx
🌾 Website: https://www.sifchain.finance
🌾 LitePaper: https://bit.ly/SifChainLitepaper