Sifchain Finance
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Sifchain Finance

Sifchain Weekly Update: 29 Jan. — 5 Feb. 2022

Peggy 2

The Peggy 2 dev team recently completed a series of integration tests for Peggy 2 and has begun engagements with auditors to evaluate the quality and security of its code. These audits are expected to take multiple rounds and extend into late March. Until then, more testing is to come, including load testing.

While they occur, the Peggy 2 team is coordinating integrations with the Sifnode, Front End, and Data Services teams. Most importantly, it is working on standardizations for developer environments with the Chainops (devops) team.

Chainops is one of the most critical components because it enables other developers to work on Peggy 2 code. To reach Omni-EVM scale, many parties will need to be able to develop bridge integrations between different EVM chains and Peggy 2 in parallel. Strong dev environments also allow engineers easily to tinker with the code to extend it or integrate it with other partners.

This brought up an impactful discussion amongst team members about how to expedite the process of deployments across multiple chains. Ideally, the code being feature complete and having a solid test suite would make it ready for development from other engineers. However, the team identified containerization and chainops as being worth standardizing before engaging the broader engineering community. That said, the code is available on Github for anyone interested in playing with it.

One of the team’s most important goals is actually connecting to other EVM chains. So far, some of the EVM chains we’ve approached have announced partnerships with Sifchain, but many more integrations are planned. The Sifcore would naturally be the most capable of installing new EVM connections to Peggy 2, especially in its earliest stages. However, Sifcore would be excited to see other engineers successfully connect EVM chains as well. Eventually, SifDAO should have a streamlined process in place for funding short development spurts from ecosystem engineers to connect Peggy 2 to a new EVM chain.

Please let us know if you have any questions or feedback about Peggy 2’s process, or anything else at Sifchain.

Margin

The team recently completed an MVP of margin that can be interfaced with via the CLI. It has also been working on a front end for the MVP as well, which is nearly complete. The team will then move into testing and bug fixing (made simpler because it already has implemented cadCAD simulations for how margin should work). Note, MVP is for a shallow margin feature with longs only, it does not include the logic for deep margin, oracle driven pricing, reputation, or other key factors.

The team is continuing documentation on the full deep margin feature and is excited to soon share a walkthrough as it is relatively complicated.

Rowan on Osmosis

Proposal for $OSMO incentives on the ROWAN:OSMO pool (https://bit.ly/3Gx33YA) has passed!

Meaning:

- $ROWAN rewards will kick in Wed, Feb 9th.

- Triple rewards of ROWAN, OSMO, and rewards from swap activity starts on Friday, Feb 11th

Multiple Token Rewards

Now that the latest Magnolia release is live, we are now closer to support paying out of rewards in multiple tokens (additional updates are still needed to bring this feature to users). When it is live, users pooling in certain pools, will be able to receive both ROWAN and the other token of that pool (heck ya!). This will also make it easier for us to support airdrops to our stakers/delegators in other tokens as well.

PMTP and Inflationary Liquidity Mining Rewards

Sifchain will soon implement a new monetary policy called “Protocol Monetary Trade Policy” (PMTP) as an alternative to inflation. While it will be launched alongside the current Sif’s Expansion liquidity mining program, SifDAO may find it prudent to reduce inflationary liquidity mining rewards from Sif’s Expansion once PMTP starts.

Fiat currency managers use monetary policy to influence the interest rates for short term borrowing or the supply of money. They use trade policy to influence the rate at which goods in their sovereign domain are exchanged.

This feature allows Sifchain governance to combine the two objectives by influencing exchange rates amongst assets (trade policy) to influence currency-wide purchasing power (monetary policy).

Most cryptocurrencies influence monetary policy through inflationary rewards. This is increasing the quantity of tokens a token holder has to trade. Protocol Monetary Trade Policy allows Sifchain governance to instead influence the number of opportunities a currency holder has to trade their existing quantity of tokens at a specified ratio.

Please check out the one-pager and feature overview for more detail.

After this feature is released, it will likely reduce the need for inflationary liquidity mining rewards. Deep margin will likely reduce the need even further. SifDAO governance will set inflationary expectations on an ongoing basis, a potential path is here below

Reduced inflationary liquidity mining can be contrasted with positive price action from PMTP and deep margin to maintain financial support for Sifchain’s poolers.

Community Hosted Front Ends

A community member has hosted a version of Sifchain’s front end which you can check out here

Other community members are also gearing up to host their own versions. If you’d like to host one, be sure to communicate in Sifchain’s Discord and you may be able to receive funding to support your efforts from the community!

Rowan Deflation

Inspired by Ethereum’s EIP-1559, Injective’s Burn Auctions, and Terra’s Contractions for UST Sifchain is exploring options to reduce Rowan’s token supply. Please share your suggestions on Discord!

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