Sifchain is a decentralized cryptocurrency exchange (DEX) that is based out of San Francisco, California. This platform was established in 2020 and built on the Cosmos blockchain. This allows for faster transaction speeds and lower transaction costs as compared to the Ethereum network. Sifchain’s goal is for blockchains to consider cross-chain integration as essential as a wallet or a block explorer. The Sifchain crypto exchange aims to be the first Omni-Chain DEX, targeting 20–25 blockchains for cross-chain integration.
The Sifchain cryptocurrency exchange does not require users to go through the KYC process. This is because it is a DEX that values privacy when it comes to user identity. Sifchain does not accept traders from the United States, Albania, Bosnia, Montenegro, Macedonia, Kosovo, Serbia, Belarus, Burma, Crimea, Cuba, Democratic Republic of Congo, Central African Republic, Iran, Iraq, Liberia, North Korea, Sudan, Syria, Zimbabwe, Yemen, Venezuela, Nicaragua, Mali, Burundi, Lebanon, Libya, Somalia, and Sudan. The platform does not have a mobile application but can be accessed from any device through the web browser.
Markets
Sifchain is built with the Cosmos SDK and uses similar cross-chain functions as Thorchain. The Sifchain crypto exchange currently supports cross-chain transactions for Ethereum’s ERC-20 tokens. However, it plans on supporting other top tokens in the future. Sifchain will also allow traders to use margin on their trades by borrowing from the liquidity pool.
The Sifchain cryptocurrency exchange uses a unique method of performing cross-chain transactions where it uses a pegged tokens model. This concept is named Peggy and was inspired by the Cosmos peg zone model. A peg zone is a blockchain that bridges zones within Cosmos to external blockchains like Ethereum and Bitcoin. Sifchain uses a 2WP protocol that allows the swapping of pegged tokens. A peg zone validator is responsible for running the node between the zone blockchain and the external blockchain. Besides, as of writing, Sifchain is planning to launch Peggy 2.0 which will allow for connectivity to EVM blockchains as well, like Avalanche and Polygon. Peggy 2.0 is also known as the Omni-EVM bridge.
rowan is the native currency of the Sifchain cryptocurrency exchange. To enable swaps between tokens, each asset is paired with rowan to make an LP pool. Transaction fees for swaps and transfers, as well as rewards for liquidity provision, are paid in rowan. rowan is also the governance token of Sifchain. It allows users to vote on important decisions for the platform. The more rowan you hold, the higher your voting power in the community is.
Sifchain exchange fees vary depending on several factors, including the Sifchain trading volume and Sifchain trading pairs. This platform does not have a minimum deposit requirement and does not charge any fees for deposits. However, they do charge fees on withdrawals that depend on the trading pair that is being withdrawn.
Other Services
In 2021, Sifchain teamed up with IBC to allow for easier transfer of assets between different chains. IBC allowed users to freely move assets between Sifchain and any connected blockchain. With the help of IBC and Peggy, Sifchain users are able to export approved Cosmos assets onto Ethereum and transfer Ethereum assets across any IBC-enabled blockchain.
A validator is able to earn Sifchain crypto fees for validating transactions on the platform. These network fees are pooled and distributed to validators based on voting power. A validator who proposed a particular block receives a bonus between 1% and 5% of the Sifchain exchange fees collected in that block. Fees are added to the reward pool for every block.
About the Company
The Sifchain cryptocurrency exchange was founded in 2020 and it aims to make cross-chain integration an essential part of its protocol. It is built on the Cosmos blockchain to allow for faster transactions with affordable transaction fees. Jazear Brooks is the founder and lead developer of the Sifchain company. He is known for being an angel investor, as he invested in several financial startups over the years.
Sifchain has been able to stay away from any major incidents like hacks. However, they are in hot waters for only accepting rowan to pay for withdrawals and other fees on the platform.
