# SITHSWAP

**Published by:** [OX](https://paragraph.com/@ox-2/)
**Published on:** 2022-06-10
**URL:** https://paragraph.com/@ox-2/sithswap

## Content

SithSwap is an advanced and next-generation Automated Market Maker (AMM) built on Starknet, a STARK technology product. SithSwap is building an AMM that features instant volatile and stable swaps with ultra-low slippage and near-zero fees and inherits the total security of Ethereum with the help of StarKnet. It will natively support pool gauges, third-party bribes, and $SITH rewards that could be locked to get voting power. Founded in December 2021 by a duo of experienced Ethereum developers, SithSwap is already on its way to becoming the leading DeFi service provider on the StarKnet ecosystem, attracting the eyes of prominent blockchain investment companies and Angel investors. StarKNet StarKware Industries announced in January 2021 that it was in the process of building StarkNet, a permissionless decentralized ZK-Rollup created using StarkWare's Turing complete Cairo programming language. They also announced that StarkNet would operate as a Layer 2 scaling solution to Ethereum. StarkNet is a decentralized, permissionless, and censorship-resistant Zero-Knowledge Rollup (ZK-Rollup) that supports general computation over Ethereum. It is a general-purpose network built upon StarKware technology where developers can develop and deploy smart contracts and interact with other smart contracts. On June 14, 2021, the team at StarkWare announced that they had launched StarkNet Planets Alpha on the Ethereum test net to allow developers to write and deploy contracts on StarkNet for general computation. Developers can deploy smart contracts on StarKnet while benefiting from Ethereum's security. The Layer 2 scaling solution has three primary network actors: developers, users, and StarkNet nodes. Developers may build smart contracts and applications to execute their business logic and deploy them on StarkNet. Users can send transactions to StarkNet to be completed, just like they interact with Ethereum/any other blockchain today. StarkNet nodes and participants will be crypto-economically incentivized to ensure the network operates efficiently and fairly. Cairo is the first production-grade platform for generating STARK proofs for general computation. It is Turing Complete and highly efficient. SithSwap AMM codebase is written with Cairo. DiversiFy, dYdX, and some other decentralized exchanges were built using Cairo due to their high efficiency and safety. Regarding StarkNet capabilities for fully secure and scalable layer two on Ethereum, all transactions on StarkNet are periodically batched and given a STARK proof to prove its validity on the Ethereum network. By design, STARK proofs require very little computational power to be verified compared to the computation proven, enabling StarkNet to scale Ethereum by orders of magnitude. However, despite these excellent features on StarKnet, it lacks the presence of a next-generation Automated Market Maker (AMM) in its ecosystem. This occurrence brought the idea to develop a next-generation Automated Market Maker (AMM) for the promising StarkNet ecosystem to an experienced developer and DeFi enthusiast, Sidius. They deployed his first contract on Ropsten in January 2015. SithSwap was founded in December 2019 by Sidius alongside his amazing co-founder, who also doubles as the UI lead. They set out to fulfill their mission and gathered a team of 5 Cairo developers and a full-time designer. DEVELOPMENT AND FUNDING The team started the development of SithSwap in January 2022, developing its solidity core and rewards smart contracts. This earned them recognition within the StarKnet ecosystem. The team applied for and got a grant from StarKware Industries to continue the development of its next-generation Automated Market Maker (AMM) on the StarKnet ecosystem. Later in the year, the exceptional work of the SithSwap team was recognized by prominent investors in the Blockchain space, such as Lemniscap. Lemniscap led a successful seed funding round of $2.65m in June 2022 with participation from Big Brain Holdings, GSR, DWeb3 Capital, Ghaf Capital Partners, and angel investors Anthony Beaumont and Etienne Royole, which will allow SithSwap to continue its mission. The founder of Lemniscap, Roderik van der Graaf, commented, "Next-gen AMMS 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. We are fully confident in the team's capabilities and that SithSwap will achieve its goal of delivering stable swaps on Starknet that will redefine the future and scale of DeFi". Sidius, the founder of SithSwap, added, "Our passionate team is fueled by a strong resolve 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 Solidity and Cairo engineers, we believe that SithSwap can comprehensively address the pressing need for a next-gen, easy-to-build-on AMM for the flourishing Starknet ecosystem". With this investment round, SithSwap is looking forward to the accelerated development of its AMM core and looking towards the end of the year for a full rollout of SithSwap protocol to DeFi users on StarKnet mainnet. SithSwap TOKENOMICS AND FUNDAMENTALS SithSwap combines some fundamental features of Uniswap, Curve Finance, and Convex Finance to offer a hybrid and groundbreaking DeFi ecosystem to users on StarKnet. SithSwap Automated Market Maker has been built following familiar Uniswap V2 architecture, features, and trading APIs that most Ethereum DeFi users are familiar with while also effortlessly supporting curve-like slippage trades for correlated asset pairs. SithSwap has some fantastic features, including pool gauges, bribes, and native protocol incentives that can be locked in exchange for vot­ing power to govern future protocol emissions and third-party rewards. Some of these features are listed below0.1% flat swap fees for users of the AMM.Native support for swaps of closely correlated (stable) assets via a new stable swap curve.Native support for swaps between uncorrelated (volatile) assetsLPs fees accrue in locked contracts and are paid out in underlying LP tokens (Not converted)Uniswap V2-like Factory, Pair, and Router contracts architecture and APIsPermissionless access to pairs of factoryPermissionless deployment and attachment of gauges and bribes to the existing poolSithSwap is built with an innovative incentive and tokenomics mechanism along with these fantastic features. The SithSwap protocol has a native token ($SITH) with weekly emissions distributed to liquidity providers. The native token ($SITH) can be locked in exchange for a vote-escrowed ($veSITH) which is an NFT (non-fungible token). Holders of $veSITH can choose to exercise voting power in determining which liquidity pools will be eligible to receive the weekly protocol emissions. Voters receive both accrued trading fees for those liquidity pools and any external rewards (also known as bribes) collected by those same liquidity pools they voted for, as well as an anti-dilutive, automatic $veSITH rebase. veSITH as an NFT is used to certify ownership of the locked tokens and allows veSITH voting power (and their claims on underlying $SITH) to be traded on any open marketplace, which is ERC721 complaint on Starknet. This opportunity opens up several benefits for lockers and incentivizes long-term locking by unlocking veSITH capital efficiency. SithSwap Protocol also supports a Bribe mechanism whereby anyone can bribe the voting power for any number of preferred liquidity pools by offering third-party ERC20 rewards. These Bribes can be deposited weekly to be distributed to veSITH voters proportionally to the voting power accrued by the chosen pools receiving the bribes during that period. Some of the features of this innovative tokenomics include;$SITH emissions incentivize fee-generation instead of liquidity$SITH holders can vote-escrow (lock) tokens for up to 4 years in return for veSITH (NFTs)veSITH lockers accumulate all fees received by pools they voted forveSITH lockers automatically rebase holdings proportionally to new $SITH emissions; hence no dilutionsveSITH lockers may direct voting power at eligible gauges to decide on next-epoch emissions allocationveSITH may negatively discharge their voting power on gauges.veSITH voting escrow natively supports voting power delegationveSITH are represented as NFTs to unlock their capital efficiency (can be freely traded)SithSwap core functionality allows all StarKnet users to trade digital assets securely and straightforwardly, with meager fees and slippage. To achieve this, SithSwap Protocol makes use of two types of liquidity pool mechanisms;Stable - for closely correlated tokens, such as stable coins ($USDC, $DAI, etc.)Variable - for uncorrelated tokens, such as $UNI or $CRV. Through a unified and familiar API, SithSwap supports the creation, LP'ing, and trading of two different liquidity pair types (Stable Pairs and Variable Pairs) based on individual token pair needs.ACHIEVEMENTS SithSwap has achieved several milestones leading to the seed funding round, which include;SithSwap team launched its communities for users in Q1, 2022 and has grown to over 4000 organic membersSithSwap team got a grant from StarKware Industries to help with the development of the StarKnet ecosystem inQ1, 2022SithSwap developed its solidity core and rewards in Q2, 2022SithSwap recently signed on with Nethermind for a full Cairo audit of its AMM codebase, reiterating its firm and critical commitment to security and safeguarding users' assets.SithSwap also launched a public sale for reSITH, which would be made available as a unique redeemable, non-transferable ERC-20 token that can be acquired exclusively through the public sale and used to redeem locked SITH at a 1:1 rate in the future. You can read more about it on this dedicated Mirror post, including how to make sure you won't miss it when the time comes; https://mirror.xyz/sithswap.eth/URxm1aL37wCwlayOQ2TKhJQPSAcRAI_da9T0pn_qXR0 SithSwap is looking forward to the launch of its Test net in July, which will be available to SithSwap community members. Join our communities to keep in touch with all our future developments Telegram: https://t.me/SithWars Discord: https://discord.gg/gAD2wuzeNf Website: https://sithswap.com/About SithSwap 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 https://sithswap.com/.

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