SithSwap: Seed Round Announcement
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0xbA4d
June 23rd, 2022

SithSwap raises $2.65M to deliver the next generation of AMMs on StarkNet, at the Ethereum frontier.

SithSwap, a next-generation automated market maker (AMM) on StarkNet, is delighted to announce its Seed Round led by Lemniscap, with participation from Big Brain Holdings, GSR, DWeb3 Capital, Ghaf Capital Partners, as well as angel investors Anthony Beaumont and Etienne Royole. The funding marks an entirely new phase in the development of SithSwap and has already allowed the project to turbocharge its team growth and development efforts targeted at becoming the foremost provider of decentralized trading services to other protocols and users already on the Starknet Alpha Mainnet.

SithSwap is backed by some of the world's leading crypto investors and builders
SithSwap is backed by some of the world's leading crypto investors and builders

❖ Building at the Frontier

On the back of the accelerating layer 2 solutions landscape, Starknet, a product of StarkWare Industries, is gearing up to emerge as the undisputed technological leader, ushering in a new era for the web3 space, by pushing blockchain technology to its next level.

StarkNet is a soon-to-be permissionless, decentralized zero-knowledge Rollup that already operates as an L2 network over Ethereum. Starknet features its own native smart contract language known as the Cairo language, which allows developers to fully exploit Starknet potential and go far beyond computations currently allowed by Solidity and the EVM.

Starknet also natively supports Account Abstraction, a powerful feature which forces Externally Owned Accounts (EOAs) to function as contracts accounts, a game-changing innovation that has long been touted as the silver bullet to finally solve long-standing frictions in web3 UX.

Thus, Starknet provides all dApps with the ability to provide near zero gas fees for transactions coupled with near-limitless scaling boundaries that concur to achieve the kind of hyper-scalability that has so far eluded all other blockchain projects.

It is within this revolutionary and industry-changing framework that SithSwap is building the next generation of Automated Market Makers (AMMs) featuring instant volatile and stable swaps with extremely low slippage and near zero gas fees for users.

❖ Protocol Features

SithSwap leverages Starknet’s groundbreaking properties to deliver an all-encompassing and innovative AMM protocol packed with interesting features.

◍ Core

The core functionality of SithSwap is allowing all StarkNet users and protocols to provide liquidity for and trade digital assets in a secure and straightforward way, with very low fees and slippage.

To offer trades at the best rates on the market, we elected to support two independent types of pairs:

  • stable - for closely correlated tokens, such as stablecoins ($USDC, $DAI, etc.)
  • volatile - for uncorrelated tokens - for example $STARK or $SITH

Through a unified and familiar API, SithSwap supports the creation, LP'ing and trading of two different liquidity pool (LP) types, based on individual token pair needs: Stable Pools and Volatile Pools.

The SithSwap router evaluates both pool types to determine the most efficient price quotation and trade execution routes available. To protect against flashloan attacks, the router will always rely on the pairs built-in 30-minute window TWAPs (time-weighted average prices) oracles.

In perfect keeping with the wider protocol design goals of immutability, self-sustainability and governance-less, the router itself doesn't require any upkeep (external maintenance) and is also an immutable and non-upgradeable contract.

Stable Pairs

Stable pairs are designed specifically for tokens which have little-to-no volatility in their trading correlation. This means that the formula used for pricing such assets allows for extremely low slippage, even on the largest trading volumes:

The Saddle
The Saddle

Learn more about SithSwap Core at the documentation pages:

◍ Rewards

The protocol was designed with an innovative (self-)governance and incentives system which revolves around the native SITH fungible token, and its derivative governance token, veSITH, an NFT that will be tradeable without impediments on all NFT marketplaces on Starknet.

veSITH NFTs can be obtained by locking up the native token (SITH) for a pre-determined amount of time in exchange for such NFTs representing a claim and voting power proportional to the underlying tokens locked.

Holders of veSITH can then choose to exercise their voting power towards any eligible Pair Gauge thereby weighing in in determining which liquidity pools will be eligible to receive a share of weekly protocol emissions (weekly SITH emissions).

SithSwap Protocol also supports a built-in bribing mechanism whereby anyone can “bribe” veSITH voting power to be redirected towards any set of preferred liquidity pools by offering and posting up any third-party ERC20 rewards.

These bribes can be deposited weekly and earmarked to be then distributed among veSITH voters proportionally to the voting power accrued by the chosen pools gauges receiving the bribes during that period.

Learn more about SithSwap Rewards at the documentation pages:

❖ Press Release

Over the past few months, we’ve watched the Starknet’s ecosystem attracts more and more talented developers as well as the most established investors in the space, however it continued to lack the presence of projects building the next-generation of Automated Market Makers (AMM). This brought about the idea to develop such an AMM to the dawning and fluorishing StarkNet ecosystem, delivered by a small but experienced Ethereum and DeFi developers team led by Sidius.

SithSwap was founded in December 2021 by two anon co-founders (Sidius and 25cfb68). They set out when the time was ripe and gathered a team of 5 Cairo developers and a full-time to professionally structure the development of SithSwap from the on-set.

"Next-gen AMM have been sorely missing from the promising StarkNet ecosystem, and it is beyond exciting to finally see one with a novel and unique design entering the fray” said Roderik van der Graaf, Founder of Lemniscap.

“We are determined to build out the next generation of DeFi at the final frontier of Ethereum, powered by StarkNet's groundbreaking ZK-rollup technology. With the collective strength and resolve of our Cairo team, we believe that SithSwap will comprehensively address the pressing need for a next-gen, composable-first and easy-to-build-on AMM for the flourishing Starknet ecosystem" said Sidius.

SithSwap already achieved several milestones leading and trailing its Seed Round, which have included:

·  opening its social communities and handles that have since grown to over 5000 organic members, in Q1 22

·  developing a full-on reference Solidity implementation for both the Core and Rewards sides of the protocol, in Q1 22

·  receiving a grant from StarkWare Industries in Q1 22, which marked the beginning of an outstanding relationship and daily collaboration with the Starkware team, which has been an invaluable help for the SithSwap team

·  reserving a full Cairo audit of the AMM codebase with Nethermind, in Q2 22, reiterating its firm and critical commitment to security and safeguarding users' assets.

·  completing the Cairo AMM codebase and beginning extensive testing and optimizations in preparation for the audit, in Q2 22

What’s next

SithSwap recently announced the reSITH Public Sale, which would be made available as a redeemable, non-transferable ERC-20 token that can be acquired exclusively through the SithSwap IDO and later used to redeem a proportional amount of locked SITH (veSITH) at a 1:1 rate, in the future.

You may read more about it in this dedicated post: https://mirror.xyz/sithswap.eth/URxm1aL37wCwlayOQ2TKhJQPSAcRAI_da9T0pn_qXR0

SithSwap is also actively preparing and looking forward to the rollout of its AMM testnet later in July, which would be available on Alpha Goerli to all StarkNet users.

❖ Official Links

SithSwap is a next-gen Automated Market Maker on StarkNet featuring instant volatile and stable swaps with ultra-low slippage, near-zero gas fees, and the complete security of Ethereum.

SithSwap will natively support pool gauges, bribes, and protocol rewards that can be locked in exchange for voting power to govern future protocol emissions and 3rd-party incentives.

To learn more about SithSwap, visit sithswap.com.

Join our communities to keep in touch with our future developments:

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