This proposal seeks to establish a partnership between Sifchain and Frax. If it passes, $2,000,000 FRAX will be used to provision liquidity on Sifchain. Deep Liquidity on Sifchain will establish a gateway into the Cosmos ecosystem for FRAX, make FRAX transferable over IBC, and eventually enable FRAX to be used as collateral in margin trading positions against any token bridged to by Sifchain’s omni-EVM bridge.
After discussing a potential partnership with Frax on the community forums for more than 5 days, and receiving support from active Frax community members (Sifchain <> Frax collaboration for deep liquidity in Cosmos), the Sifchain community has decided to bring this proposal to a formal vote. Please read the linked thread for more resources including bridge audits, tokenomics clarifications, and other concerns.
Sifchain is a Cosmos SDK built DEX. Our primary value proposition is that we enable capital efficient cross-chain trading through two features: omni-EVM and deep margin. Other interesting aspects of Sifchain include our use of slip-based swap fees, eventual order-book implementation, and having ROWAN as a base pair for all pools.
Omni-EVM: Sifchain aims to be the first Omni-Chain DEX, connecting to 20–25 blockchains for cross-chain integration. The targeted blockchains represent the overwhelming majority of all cryptocurrency trading volume - thus actively traded assets from all chains will be accessed through the Sifchain DEX. Omni-EVM will enable any ERC20 token, any Cosmos Token, and any token that exists on ANY EVM compatible blockchain to be imported and traded in Sifchain.
Deep Margin: Hopefully coming as soon as Q2, Sifchain will deploy its novel architecture for margin trading - allowing traders to use leverage on their trades by borrowing from the liquidity pool. The interest rate is set based on market demand and liquidity supply. Liquidity providers are able to add liquidity into Sifchain’s pools symmetrically or asymmetrically, while MEV front-running in order placements is prevented through a commitment-reveal scheme.
Deep Margin + Omni-EVM: Any ERC20 token or Cosmos Network token will be able to be used as collateral in any margin trading position. Likewise, any such token can be longed or shorted. This unlocks nearly unlimited margin trading pairs and enables users to utilize this feature on tokens that have previously never been possible.
Following the standards outlined in [Bridge Mechanism - Frax Finance ¤], FRAX on Sifchain will not be the canonical representation of FRAX, and as such it will be called sifFRAX when traveling over IBC (Cosmos’s Inter-blockchain Communication Protocol).
For: establish a partnership with Sifchain and provision $2,000,000 (2 Million Dollars) of FRAX liquidity on Sifchain.
Against: do nothing
Our market maker will work with the relevant members of the FRAX team to provision the initial liquidity for the pool. If a canonical version of FRAX is deployed at any time, Sifchain will work with the FRAX team to ensure that token fungibility between bridged assets and canonical assets is achieved to the satisfaction of both parties.