Hello to the Secret community! Today we’re excited to feature a new Secret App on our blog: Sienna Network, which has now launched on the Secret mainnet.
Sienna Network was founded with a vision to bring privacy to DeFi – swapping out full transparency (and its negative consequences for security) with privacy by default for end users and institutions. The launch of SiennaSwap was the first of many steps central to Sienna’s vision of introducing a new interconnected DeFi protocol that will empower completely private lending, borrowing, and trading experience that have excellent scalability in addition to low transaction fees.
Use SiennaSwap now!
Privacy is an essential factor to the Sienna platform. To achieve it, they leverages Secret Network, which allows for private smart contracts and private-by-default tokens similar to Monero and Zcash while having all the programmability of ERC20 tokens. Secret Network is the first blockchain that supports encrypted inputs, encrypted outputs and encrypted state for the privacy of smart contracts.
By building Sienna on programmable private smart contracts, it enables a variety of powerful new use cases Sienna is bringing into DeFi. Programmable privacy allows feeding verifiable sensitive data into a decentralized world without revealing said data. Decentralized identities, credit scores, under-collateralized loans, and privacy for institutions are a few to mention. Sienna is already in talks with major institutions about using Sienna as their platform of choice for DeFi. More on this will be announced in due time.
Read about Sienna in TechCrunch:
Mike Butcher
The Sienna platform is controlled by SIENNA, the governance token, which is earned by using the Sienna platform via liquidity mining and other initiatives over time, creating a fair distribution for a perfect decentralized future, where SIENNA token holders decide over the entire platform.
Read the Sienna Network Whitepaper for more information.
Privacy First
Data is useful for many purposes and can lead to new inventions and progress. However, we must distinguish between what is publicly accessible data and what is not. Your data belongs to you and should not become the property of others, including how you transact assets online.
Sienna is on a mission to protect your privacy. Not only does Sienna protect your privacy by default – Sienna also do not have access to any information due to Secret Networks inherent privacy design. Sienna saves no login information, no wallet data, no transaction data or anything else.
For money to function properly, it must be private.
Sienna is built on Secret Network, which is the first blockchain with privacy-preserving smart contracts. This means no one can see your wallet balance, all transactions are completely private and allows you to build privacy-first applications on top of it, which is exactly what Sienna has done.
Native privacy not only gives you the comfort of not being monitored, but it also prevents front-running.
Front-running is the phenomenon where future trades can be seen by everyone prior to execution. Execution priority on ie. Ethereum is driven by transaction fees. A transaction can be preempted by simply introducing a transaction and paying a higher transaction fee. This is known as front-running and is illegal in the regulated financial system for good reasons.
Sienna’s AMM (a privacy-first decentralized exchange) is inherently front-running-resistant due to its private nature. No one can follow or exploit your positions.
Instant transactions and low fees
Secret Network is highly scalable with transactions get confirmed in seconds and at a fraction of the cost of Ethereum’s fees. Subsequently, as the Sienna protocol is scalable, transaction costs are low. This means all types of investors can participate in the ecosystem without getting eaten up by exorbitant fees – even the smaller ones.
Automated Market Maker (AMM)
Sienna’s Automated Market Maker (AMM) is a balance principle market maker. Instead of running an order book with bids and asks, which have to match and delay trades and makes them expensive to execute, Sienna Swap requires liquidity providers to deposit both tokens from a given pair.
The dual deposit system is the foundation for a balanced approach that makes it possible to trade without delay as the buyer is always present and there is no need for a matching bid as we know it from an order book principle.
How does the Sienna Swap determine the trading price?
Sienna Swap is based on a simple principle and math.
The formula is:
X*Y=C
The platform automatically finds the constant (C) by finding the common denominator from X and Y.
An example for finding the constant (C) from a pair of sETH (X) and sDAI (Y): Currently, as we write this, the prices are USD 1,300 (X) and USD 1 (Y). For the equation to align, we will do the simple maths.
1,300 * 1 = 1,300
Therefore, USD 1,300 is our swap price.
This example is easy to understand because DAI is a stable coin that is soft pegged 1:1 with the US Dollar so it will always be close to 1 USD. The concept is, however, similar when it comes to other tokens with different values.
Swapping comes with the de facto standard price of decentralized exchanges, which is 0.30%, constituted of 0.28% is for the liquidity providers and 0.02% is automatically converted into SIENNA tokens and burned in order to reduce the total SIENNA supply.
This means that the more people use Sienna Swap, the more the SIENNA governance token will appreciate in value. It also means Sienna is not taking any commission on the trades.
Sienna is aiming to become the de facto standard for privacy-first DeFi across multiple blockchains, targeting Ethereum initially, the biggest DeFi ecosystem, followed by other blockchains such as Polkadot, Cosmos and other chains in the near future.
In summary, SiennaSwap has the following properties and opportunities:
- Privacy first
- Fully decentralized
- Cheap transactions
- Liquidity provision opportunities
- Easy UI/UX
Within the first two weeks after the mainnet launch of SiennaSwap, the platform has already seen $40,000,000+ in cumulative volume – an excellent signal of adoption and growth for what is to come with Sienna Network. Check out SiennaSwap metrics on Secret Analytics V3 to learn more about liquidity, daily fees generated, pairs, users, and transactions!
https://secretanalytics.xyz/siennaswap
The following are a list of some of the most popular pairs currently available on SiennaSwap:
- Sienna-sSCRT
- sSCRT-sETH
- Sienna-sUSDC
- Sienna-sUSDT
- sSCRT-sWBTC
See you on SiennaSwap – and get ready for more features coming soon 🤫
Onwards and upwards!
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