Anna KeyThu, Feb 3, 2022 5:25 PM
DeFying Gravity: How Sienna Network Saved DeFi
This episode of our DeFying Gravity series is dedicated to Sienna Network, a rather interesting project focused on delivering the best privacy options for its users. Using ‘Privacy Meets DeFi’ as the main slogan, Sienna is a privacy-first cross-chain decentralized finance platform that allows users to privately swap, lend and convert tokens.
Last year Sienna Network managed to raise over $11 million from investors and received a significant amount of media coverage, all due to its unique privacy protocol design. Sienna is believed to have become the key pillar in the mass adoption of DeFi. What does Sienna Network have to offer for newcomers?
Why Privacy Is Good
Bitcoin, Ethereum, and other cryptocurrencies are built using public blockchain technology.
These types of transactions, being decentralized, are not subject to government regulations. The technology, however, is not perfect. When you transfer money on a public blockchain, each transaction is transparent.
What’s worse is that your real-life identity might be disclosed and connected to your blockchain activity. The situation is far from ideal and this is why projects like Sienna Network are brought into play.
For those wanting complete privacy and full control over their finances, neither centralized nor decentralized finance has provided all the answers. While in some areas blockchain transparency is advantageous (e.g., full financial control), in others – it increases the risks of personal information being stolen.
What is Sienna Network
The basic privacy principles were first established over 1000 years ago in Sienna, Italy. But in this day and age, invasion of privacy is a common occurrence. However, Sienna Network’s team is convinced that privacy is a fundamental human right.
Sienna’s DeFi protocol makes private lending, borrowing, and trading experiences possible. While the protocol provides freedom for its users, it also offers programmable privacy settings by default.
According to Sienna developers, the network, launched in April 2021, is ‘designed to execute private smart contracts with the programmability of e.g. Ethereum, while maintaining privacy’. This allows for sensitive data (sender and/or receiver information) to be exchanged in a decentralized secure way.
Sienna is built on Secret Network, which is known to be the first blockchain to support private smart contracts, offering low fees, high operability, and full privacy. By using Sienna’s private smart contracts, participants are able to keep their sensitive data safe in the DeFi world.
Many holders were particularly excited about the app launched by Sienna Network developers in October 2021, called SiennaSwap. SiennaSwap runs on Secret and allows users to swap or exchange tokens via a bridge.
Sienna Network’s governance token, SIENNA, can be purchased on SiennaSwap and/or earned by providing liquidity over time. Wrapped SIENNA, aka wSienna, is an ERC-20 version of the native SIENNA token, can be purchased on Uniswap, PancakeSwap, KuCoin.
SIENNA holders participate in the project’s voting system, where they decide the future of the platform. 1 SIENNA token equals 1 vote.
Sienna’s team is determined to make the project as impactful and significant as possible. In mid-2021 developers acquired bridge support by Binance Smart Chain. They are planning to implement more bridges this year, making Sienna the first network to provide full privacy for various major blockchains.
DeFi to Go Mainstream With Sienna Network
While the transparency of blockchains is often marketed as a benefit, in some cases it’s not. Blockchain transparency may lead to certain vulnerabilities, such as front-running. Utilized by some users to unethically capitalize on unknown pending transactions, front-running has become growing malpractice within the crypto world.
During a blockchain trading transaction, brokers gain access to information on pending transactions, wait until the original owner places an order on top, and get their stolen profit.
Front-runners take advantage of the prior knowledge they acquired from surveilling blockchain trading transactions and resort to purchasing or selling these trades before their original owners. This is one of the existing flaws that blockchain transparency currently has.
DeFi strives to solve real-world financial problems individuals and companies deal with. Yet, it cannot answer all the questions. At least for now. DeFi transactions are cheap, fast, and do not require a third party, but they are also transparent and seen by the public.
Privacy is what DeFi lacks. Platforms like Sienna Network are changing the future of DeFi by paving their way on the market.
Technology is uncertain. But there is one thing we can say for sure: privacy looks like a question of huge importance for the future of DeFi. Will platforms like Sienna Network become something DeFi cannot exist without? Only time will tell.
Sienna Network’s Roadmap
As a growing platform aiming to work on constantly improving its service, Sienna Network has a detailed roadmap designed for 2022.
The highlights of Sienna Network’s roadmap for the first half of 2022 include:
- SiennaSwap 2.0
- Rewards V3
- Sienna Launchpad
- DAO Governance
- New Utilities
Sienna Network’s team is aiming to deliver an even more user-friendly experience by emphasizing optimization. One great example of user experience optimization is the upcoming adaptation of Secret Network’s “permissions” to preserve the data decryption process, but make it run much more smoothly. This feature will be added to the updated version of Sienna.
The second half of the year looks just as promising. The key updates include:
- Protocol Owned Liquidity (POL)
- Sienna Launchpad: Built-in Token-Generation
- The Sienna DAO collaborations with other projects
By switching to Protocol Owned Liquidity (POL), the platform is hoping to accelerate the TVL (Total Value Locked) growth for SiennaSwap, lower price impacts, and improve the overall user experience.
The Sienna Launchpad is planning to utilize its built-in Token-Generation feature, which will allow for new projects to create and launch their tokens on Sienna Network in an easy and simple way. The newly launched tokens will be listed on SiennaSwap in case they get selected.
Partnerships will play a huge role in Sienna Network’s future. Choosing the right partner will not only become a great source of entering new markets for Sienna but also create more room for improvement and growth.
The Sienna DAO provides key governance resources to the network, however, in the future, the platform is going to help other collaborative projects grow bigger, stronger, more effortless and ambitious alongside Sienna.
What is Sienna Network?
Sienna is a privacy-first, cross-chain, decentralized financial platform that allows users to privately swap, lend and convert tokens.
Which Product is Sienna Network launching?
In October 2021, Sienna Network launched its own “Automated Market Maker” SiennaSwap, which allows users to convert tokens into their private equivalent, swap, and/or exchange tokens via a bridge.
Where Can I Buy Sienna Cryptocurrency?
Sienna Network’s governance token SIENNA can be bought on SiennaSwap, and wrapped SIENNA can be purchased on KuCoin, Uniswap, PancakeSwap, MEXC Global, Hotbit, Gate.io, BitMart.
What Wallet is Used in Sienna's Platform?
Sienna Network uses Keplr browser wallet. Keplr lets users interact with the SNIP-20 token standard easily.
Which Token of Sienna Can You Trade in the KuCoin Spot Market?
Wrapped SIENNA is available for purchase on KuCoin. The supported trading pair is wSIENNA/USDT.
What is the Total Supply of Sienna?
Sienna Network has a total supply of 10 million tokens. The current circulating supply is 1.9 million.