If “DeFi” (decentralized finance) is to have a future, the rise of privacy-focused financial blockchain projects will be critical. We’ve grown accustomed to privacy in our “normal” financial lives, and we’ll continue to expect it in the blockchain and crypto worlds, despite what some may claim.
In May, we first heard rumblings of this when Arrington Capital and Blocktower Capital invested in the Secret Network blockchain, a privacy-first intelligent contract platform. It was also evident when Sienna Network, a decentralized finance company, raised $11.2 million from institutional investors.
The fact that Sienna is built on the above Secret Network is no coincidence. As a result, Sienna is launching SiennaSwap, an “Automated Market Maker” that works on its platform today. To gain yield, Sienna token holders can now convert their tokens into their private equivalents, which they can then swap or place in liquidity pools.
It means users can avoid the lack of privacy on exchanges, where others can see what they’re doing, and arbitrage on those transactions with “front-running,” which is a significant flaw in today’s crypto transactions.
Uniswap, PancakeSwap, and other DEXs in the crypto ecosystem are also involved in this private space. However, SiennaSwap claims that its privacy-preserving features, which it claims address the front-running issue, set it apart. Sienna is also a part of the Csmos Ecosystem, where new projects are launched daily, enhancing the ecosystem’s overall offering.
The SiennaSwap launch comes after the organization raised $10 million in a private sale and $11.2 million in a public sale of its tokens in May. Investors included Magnus NGC, Inclusion Capital, Lotus Capital, FBG, SkyVision Capital, and others.
It’s also worth noting that the Sienna Network blockchain is a “carbon-friendly” Proof-of-Stake (PoS) blockchain, requiring far less energy than Proof-of-Work chains like Bitcoin, which need miners to use a lot of power.
“Sienna’s launch marks a massive turning point both for Secret’s DeFi ecosystem and for DeFi in general,” said Tor Bair, founder of the Secret Foundation. Because providing users with privacy by design is critical to securing and scaling these new financial platforms, Sienna is poised to lead a new wave of growth.”