feature_image

The Sikka team has high hopes for their project and believes this protocol is headed to the top of the DeFi world. They commented on the progress that has been made on their roadmap.

STABILIZING STABLECOINS

Sikka Seeks to Serve as the Solution for a Stable, Secure Stablecoin

sta·ble

/ˈstābəl/

  1. not likely to give way or overturn
  2. firmly fixed

A stablecoin is a digital currency that is pegged, or tied, to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility by pursuing price stability through maintaining reserve assets as collateral or through algorithmic formulas that are supposed to control supply. In theory, it was a breakthrough to have digital assets that would be more useful than more volatile cryptocurrencies as a medium of exchange. In practice, however, stablecoins have not lived up to their definition.

Words like depegging, unfortunately, have become part of the modern crypto vernacular. When the TerraUSD (UST) suddenly disintegrated in May, it sent shockwaves throughout the crypto universe. Will stablecoins be able to regain the trust of the crypto community?

Just when the crypto world desperately needed a truly stable stablecoin, in stepped Sikka, a new DeFi protocol built on the Polygon network. Sikka is a cross-chain lending protocol, billed as “the next-generation USD stablecoin backed by the MATIC token,” that allows users to borrow SIKKA stablecoins against their staked MATIC tokens. This increases composability and capital efficiency, allowing users to earn additional yields from the SIKKA yield-bearing stablecoin in a single debt position against low interest. SIKKA, according to the company website, is the No. 1 stablecoin on the Polygon network and is pegged to the USD, with 1 SIKKA equivalent to 1 USD.

When asked about the mission of Sikka, their leadership team gave an overview of the company’s objectives. “The basic purpose of Sikka Protocol is to provide competitive yields in a sustainable way, enabling the majority of users to profit from the increased money velocity of the crypto markets. Our primary sources of Sikka base yield will be the interest on borrowing, proof-of-stake procedures that create income, and finally, liquidity pool transaction fees. If we take a more in-depth look at what we’re looking to provide, we’ll see that DeFi composability would allow Sikka Liquidity Providers, and subsequently, Sikka stakeholders, to increase yield in a sustainable way through integration with other lending platforms.”

The Sikka team has high hopes for their project and believes this protocol is headed to the top of the DeFi world. They commented on the progress that has been made on their roadmap.

“Our first major milepost is to take over the MATIC chain! We will focus on increasing SIKKA adoption by collaborating with other DeFi protocols on the MATIC chain and thus influencing reward emission using native tokens from these multiple protocols. By using SIKKA tokens, we will also actively incentivize liquidity pools, hence maintaining the peg. Last but not least, during this first stage, we will also allow other DeFi protocols to build on top of Sikka, which will uncover DeFi composability which will allow SIKKA holders to increase their returns.


During our second milepost, we will be focused on not only enabling the SIKKA single-stake pool but also extending Sikka to other chains. We will also be looking to start the Sikka community governance process and even allow other Proof-of-Stake tokens to be used as collateral.


On our ‘last’ stage, our plan is to get listed as basic pairs on centralized exchanges and then achieve integrations with popular FinTech apps to promote and achieve daily usage of our tokens and protocol.”

As mentioned earlier, Sikka is one of the rapidly growing number of projects that are Powered by Polygon. Choosing to launch on Polygon was an easy decision. “We must say that the work Polygon has been laying is simply outstanding. From low fees to high TPS output and finally to their multiple use cases such as liquid staking MATIC, we found that Polygon was the perfect platform on which to release SIKKA.”

When asked if they could say one thing to Sandeep Nailwal and the Polygon leadership team, what message they would deliver, they gave this response. “Keep doing what you’re doing and never look back. Keep on promoting decentralization, permissionless protocols, transparency, security, and above all, keep showing true support for your community.”

With the industry’s need for a secure stablecoin, with a dynamic leadership team, and with their partnership with the powerhouse Polygon project, Sikka seems destined for success. Raja (@raja_sikka), CEO of Sikka Money, is excited about the future.

“We want to provide the utmost utility while maintaining a high level of transparency, security, and permissionless usability. We believe the ecosystem we’re building will be of great use not only to our users but also to all MATIC supporters. Our team has been working 24/7, and apart from the common challenges every team faces when building a decentralized protocol, I can say that all is going smoothly, and we’ve never been so excited to take Sikka to new heights.”

Learn More About Sikka
Website: https://sikka.money/
Twitter: https://twitter.com/Sikkamoney
Telegram Community: https://t.me/sikkamoney
Telegram Announcements: https://t.me/sikkamoneyann
Discord: https://discord.gg/tyRX5yaJuT
Medium: https://medium.com/sikkamoney

Written By

The Matic Man

Jul 25, 2022