Sifchain Staking

Sifchain is the world’s first omni-chain decentralized exchange. Swap & pool the native ROWAN token with ETH and popular ERC-20 tokens on the Sifchain DEX, which is 100x more efficient than other leading DEXes.

Over time, Sifchain will support cross-chain transactions for 20+ of the top blockchains to become the leading value exchange platform in DeFi. 

ROWAN will be the functional token of the Sifchain network. Sifchain derives its internal asset price from CLPs and uses ROWAN as the settlement token. Traders must directly or indirectly purchase Rowan in order to execute trades against CLPs. For example, the USDC:BTC internal price is calculated using the USDC:RWN and RWN:BTC CLPs. ROWAN can be used for a variety of different actions within the Sifchain ecosystem, including:

• To stake a node and earn block rewards
• To delegate to a staked node and earn a commission of block rewards.
• To execute a swap from one token to another. Swaps will cost fees, which are paid via ROWAN.
• To add liquidity to a pool and earn swap fees accrued within that pool.

ROWAN is a token that exists within the Sifchain ecosystem, therefore you will need a Sifchain address to hold these tokens. Since Sifchain is built with the Cosmos SDK, you can use the Keplr wallet to generate a Sifchain address and custody your ROWAN.
eROWAN is an ERC-20 token that exists within the Ethereum ecosystem, therefore you will need an Ethereum address to hold these tokens. At the moment, eROWAN supports MetaMask.

To stake Sifchain, you will first need to make a Keplr Wallet account and transfer some ROWAN tokens to it. Then, find the Sifchain Asset on the left side of the page. You will then see a list of Validators you can stake with. Once you have decided who to delegate to, click on Manage and follow the instructions.

For a more in-depth Staking Guide, check out our Sifchain Staking Tutorial (link coming soon).

The current reward rate for staking on Sifchain is around 70% per annum.

Rewards are currently mainly derived from inflation, but you can also expect to earn a share of the fees that will be paid out on the network. Currently these fees are not live yet, but as soon as they are, they will be reflected in the reward rate.

Inflation will slow down over time and therefore rewards will also reduce unless the rewards brought in through fees grow at a faster rate than the inflation reduces.

Your reward is also affected by the amount of tokens that are staked. Currently, 19.5% of tokens are staked, and if this percentage doubles, your realized rewards will be half.

As with any staking, there are risks associated with it. If a validator you delegate to misbehaves they and their delegators will lose part of their initial investment (slashing). On top of this, there are the usual risks associated with smart contracts.

There is also a 21-day lock-up period, which means that if there is any negative price movement in the token, you won’t be able to withdraw your tokens for 3 weeks.