Sifchain <> Frax collaboration for deep liquidity in Cosmos

Hello everyone,

My name is tusz and I come representing Sifchain (Sif was a norse goddess – no relation to Sifu). I am here because I would like to begin a discussion about how Sifchain & Frax Finance could collaborate to bring deep $FRAX and $FXS liquidity to Cosmos.

TLDR:

A Sifchain <> Frax partnership would benefit the Frax community greatly because all ERC20 tokens brought over Sifchain’s Peggy bridge will be transferable throughout all Cosmos SDK built chains with IBC, thus enabling deep liquidity on Cosmos DEXes.

What is Sifchain:

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 continuous liquid pools 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.

Collaborating with FRAX

As outlined above, Sifchain is positioned to be one of the leading DEXes in Cosmos. We would like to collaborate with the community here to bring about deep FRAX liquidity on Cosmos DEXes, starting with Sifchain. Currently, our FRAX pools currently have 0 volume and abysmal depth, while FXS doesn’t fare much better. I wanted to begin this conversation to begin discussing how Sifchain & FRAX could collaborate to the benefit of both chains. If you would like to try our dex, you can do so here: dex.sifchain.finance.

Keep in mind that for legal reasons, residents of certain jurisdictions are geoblocked from accessing the dex. To remedy this, some parties are in the process of launching dockerized versions of the UI on Akash Network decentralized cloud.

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Because I am new I am only allowed two links, but for further reading about Sifchain’s Peggy bridge:

interesting.

im having look around so will post some links that may help others.

https://twitter.com/sifchain

https://drive.google.com/drive/u/0/folders/1kkjdpNuRmTjaiIKA6CQISavCvj4Awpbc

the audits

Thanks!

I’ll also add our discord to this list, we are most active there: Sifchain Finance

Also, keep in mind that Sifchain is in betanet at the moment (although everything still functons without hiccups, including the two-way bridge). Main net will launch with Peggy 2.0 omni-evm and deep margin trading – Q2/Q3 this year.

is there a team members list anywhere ?

worth a watch > The Sifchain DEX Pays Out HUGE Weekly Income (DeFi Liquidity Mining) - YouTube

We don’t have one available publicly, though for due diligence reasons (especially given recent events) we would be very happy to provide one privately. Here you can see our founder at the Cosmoverse event. It’s also definitely worth a watch: Jazear Brooks - Founder of Sifchain on CØSMOS DEFI - YouTube

already seen that :slight_smile:

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You are quite diligent :slight_smile:

i have some questions about the ROWAN token, and im to lazy to do the maths in the white paper.

so , ROWAN token is a token that has an inflating supply, am i right in thinking the rate of inflation will slow down once the “300% apr” boosted pairs are reduced down to the apr% levels of the other pairs, and if so is there a time frame of when this will happen ?

Yes, new tokenomics are being discussed as we speak, though liquidity mining may continue in the near future if the community decides so. Our current LM campaign is to tide us over until deep margin comes, which will bring sustainably high rewards for LPers. That said, liquidity mining is definitely not permanent, and as soon as we have another, more capital-efficient mechanism in place we will migrate to that. We also just launched ATOM:eROWAN bonds on olympus pro: Sifchain and Olympus Pro Present: eROWAN Bonds! | by Sif | Sifchain Finance | Jan, 2022 | Medium

We are also currently looking into deflationary mechanics as well, similar to what injective does with its burn auctions (will be happy to expand if there’s interest there, but nothing is set in stone yet).

The 300% APR pools are chosen by the community each month. Actually, we have a stablecoin 300% APR vote going on now, so if the FRAX community moved fast enough, they could incentivize the FRAX:ROWAN pool with 300% APR.

also , what are you looking for from FRAX?

clearly you want a liquidity provider, but on what chain , or will it be frax on more then one chain ?
what amounts are we talking about?
is it just FRAX or FXS also ?

Of course this will be up for discussion with your community, but our initial goal is to have a ROWAN:FRAX pool with at least $1M depth on Sifchain, which will enable a gateway into the Cosmos ecosystem. We are also interested in FXS, although we will await your community’s responses regarding liquidity goals there.

We believe that this would create an initial foothold and from there would also like to help frax expand onto other DEXes in Cosmos such as JunoSwap and Gravity DEX with whatever token pairs they would like, as long as ROWAN:FRAX is launched alongside of it.

Beyond that we would hope to have cross-community events where the frax community can come into our discord and try to promote frax/fxs to be 300% APR pools (contingent upon the continuation of the liquidity mining program next month).

*edit: for clarity, the $1M pool depth would be our deepest stable coin pool, as compared to USDC ($577K depth), USDT (232k depth), UST (177k).

yeah, i noticed that and UST at $176k

Most of USTs Cosmos depth (outside of terra ecosystem stuff) is on Osmosis, they have over $121M of liquidity there, and Do Kwon actually was recently involved in a fundraising round to invest in Osmosis, so the partnership there is quite strong.

We hope to have a strong partnership with FRAX :slight_smile:

i think i would support a working relationship between the 2 protocols but from a FRAX point of view i think we should proceed with caution. cross chain trading / swapping has been very risky and other protocols have been exploited in the past.

i think deploying $1-2m in FRAX liquidity is a good place to start a relationship.

going forward i would also like to look at the idea of a small amount of FPI liquidity.

but i would like to hear views from others as im not up to speed on the cross - chain trading protocol risks

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I am also very much looking forward to the opinions of others.

Thanks for all of your questions and helping to share information.

For any technical questions anyone may have, I will be very happy to have someone from our dev team step in as well.

i see the ROWAN token unlock times are all vested for the same time frames, and when mainnet goes live 7.75% of the tokens are released each month for the following 12 months (93% in total)

i guess the private round and seed investors (32.5% of the total) will be unloading some of their holdings, but whats the plan with the team reserve, team, and ecosystem tokens ?

i guess the team tokens are to fund the team , but whats the team reserve and ecosystem coins being used for once they are unlocked ?

you mention a governance vote, but when i click the governance tab on the website it just re-directs me to the white paper. can you post a link to your governance threads and stuff please