source: sifchain.network
Sifchain, the omni-chain DEX on the Cosmos network, is built with the Cosmos SDK and inherits the cross-chain capabilities of Thorchain. Sifchain uses pegged tokens to support cross-chain transactions across a wide array of blockchains, starting with Ethereum and many other prominent blockchains will arrive soon.
On April 20 2022, an innovative and brand new liquidity mining tokenomics concept, PMTP, Protocol Monetary Trade Policy, which will be operated by SifDAO, was introduced into Sifchain. This post in the following will briefly introduce this exciting new Defi idea to the readers.
Before we dive into PMTP, we can have a look at the price chart of $ROWAN, the coin of Sifchain. It turns out the value of $ROWAN has been steadily increasing, outperforming most other cryptos during the past week, testifying the initial success of bring PMTP to life on Sifchain.
source: https://www.coingecko.com/en/coins/sifchain
Okay! Let's take a look at Sifchain's brand new PMTP in the following.
What is PMTP & how does it work?
PMTP, Protocol Monetary Trade Policy, is a tokenomics innovation that aims to enhance through adjustment ROWAN’s long term purchasing power and hope to eventually eliminate the need for inflation, which is a commonly seen factor for failure for many Defi projects.
Therefore, if the purchasing power increases, that means that PMTP enables ROWAN holders to buy more assets with the same amount of ROWAN than they would have before PMTP.
The goal of introducing PMTP is to attract external liquidity and increase TVL by making Sifchain a top choice for parking liquidity and earning rewards in ROWAN.
Why is PMTP beneficial for ROWAN investors & the Sifchain community?
With PMTP in place, eventually Sifchain presents a unique opportunity for new projects to add liquidity for their projects on Sifchain and they will be able to make data-driven predictions about the return on their investment. Sifchain DEX will become the hub of cross-chain liquidity and $ROWAN will become more valuable than ever since all assets on Sifchain must be paired with ROWAN. ROWAN holders will be happy and the Sifchain community will grow, creating a positive loop for a sustainable and successful DEX.
Do investors need to do anything to benefit from PMTP’s effects?
No. Just do whatever a Defi user or investor does. Swap tokens on Sifchain, provide liquidity and earn rewards in ROWAN on Sifchain (the reward gets compounded every 6 seconds!), hold or stake ROWANs (currently with 166% APR). Do the normal things above and PMTP will drive values higher for you automatically.
However, if investors wish to participate the governance of SifDAO, they can feel free to join Sifchain community discussion group (discord here). You are welcome to tune the parameters through collective wisdom and communication!
pixabay
Join Sifchain on various platforms here!!
Reference
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