At AU21 Capital, we are delighted to announce our recent investment in Sifchain, a decentralized multi-chain exchange for cryptocurrencies that serves to eliminate the shortfalls of existing digital asset exchanges. Our investment stands as a symbol of our devotion to advancing the cryptocurrency ecosystem by supporting robust marketplaces and increasing liquidity through seamless cross-chain compatibility.
Failures Arising from the “DEX v. CEX” Dichotomy
Alongside Decentralized Finance’s rapid value accretion, a large number of marketplaces have emerged for investors to exchange and speculate on the value of their digital assets. Throughout this rise, exchange service offerings have become increasingly polarized in the matter by which they connect buyers to sellers, creating two classes of equally unappealing solutions.
Centralized Cryptocurrency Exchanges function in much the same way as a marketplace for common equity shares would. This allows users to experience a near-effortless onramp as they begin engaging in transactions, though the underlying model leaves much to be desired. Centralized exchanges often geographically limit their availability, and severely restrict the number of assets and services users can engage with.
Decentralized Exchanges attempt to solve some of the inherent flaws in centralized offerings, but remain incomplete as effective exchange mechanisms. Though product availability and user accessibility are greatly improved, decentralization substitutes one problem for another. Traders must endure anemic marketplace volume, high and unpredictable transaction costs and long lags when participating in current decentralized marketplaces, leading many to wonder if DEX’s provide any discernible utility over centralized offerings.
Sifchain — The Universal Asset Exchange
Sifchain is a new decentralized utility for Cryptocurrency traders that provides support for any token or transaction irrespective of user location. Sifchain rectifies many of the problems existing in current solutions by conjoining features from decentralized exchanges, such as peer-to-peer swaps and protocol-generated markets, with elements more commonly associated with centralized exchanges, including rapid transaction clearance, margin trading and order book formation. By allowing order flow to be routed and completed between both a decentralized liquidity pool and a centralized order book, Sifchain allows high-throughput, low cost transactions within any token ecosystem or chain, allowing for better execution while greatly reducing investor uncertainty. Lastly, Sifchain aims to fortify the market as a whole by integrating margin trading and allowing for greater ease of cross-chain adaptations.
We are proud to partner with Sifchain as they revolutionize cryptocurrency trading and increase synchrony in the development of cross-chain architecture.