*obligatory not financial advice*
What is Sienna?
Sienna is a DeFi protocol running on the Secret Network blockchain. It already has a decentralized exchange and will soon launch a lending protocol, like Aave or Compound. What makes Sienna interesting is that it offers complete privacy thanks to its blockchain.
Normally all transactions of a blockchain are public and visible for everyone. This can be a problem because everyone that knows your address could trace every transaction you do back to you. However, Secret Network encrypts all its transactions by default and they can only be seen with a viewing key that only the sender and receiver have but they can share them with third parties if wanted.
This makes it possible to not only have simple private transactions like Monero offers them, but even private DeFi protocols. With Sienna you can swap different tokens and soon you will be able to take DeFi loans, all while staying completely anonymous and not having to compromise your privacy unless wanted.
Sienna Swap
The swap is already available and it offers more than 60 different tokens so far. The available tokens aren't limited to tokens native to Secret Network, but also plenty of bridged tokens from Ethereum, the BINANCE Smart Chain and the Cosmos ecosystem. Tokens and coins like ETH, UNI, AAVE, ATOM, LINK, CAKE and many more high in demand cryptocurrencies can be privately traded there. This is only possible because Secret Network is a part of the Cosmos system and it has a bridge for Ethereum and BSC.
The DEX works like any other DEX does. People provide liquidity in token pairs in exchange for trading fees and the prices are automatically set by the supply of the tokens in the pair. Liquidity providers can also earn SIENNA governance tokens by staking their LP tokens.
One thing that is honestly very annoying is that Secret Network requires its users to opt-in in each new token before they can hold it, which costs gas fees, but you only have to do it once per token.
Sienna Lend
The lending protocol will launch likely in Q1 of 2022, if not still in December 2021. Just like Aave it will enable users to lend their tokens in exchange for a variable interest rate. Users can also use their funds to take over collateralized loans.
The reason why anyone would take such a loan is because they need liquidity but don't want to sell an asset they are bullish on, or because they want to short the borrowed asset. Should the value of the collateral fall so low that it’s at risk to not be able to cover the loan anymore, it will be sold automatically and the debt is considered paid off.
Sienna Lend is partnered with Band Protocol, which they use to determinate the prices of each asset.
The SIENNA Token
SIENNA is the governance token of Sienna and it is used to incentivise people to use the protocol. The token lets its holders vote on possible changes on both the DEX and the lending protocol.
There is a total supply of 10 million, 39% of the supply is used to reward liquidity providers, 24% were given to the founders, 20% were sold in the private sale, 13% went to the development fund, 2% went to advisors and 2% of the supply were sold in a public sale.
The tokens of the founders, private sale, development fund and advisors have been locked up for between 3 and 12 months and once the lock up is over they will slowly release small amounts of their tokens daily. This vesting schedule could push the price of the token downward.
The token can be bought directly on Secret Network on Sienna Swap, but wrapped versions can also be bought on Uniswap and Pankecakeswap. also offers trading SIENNA tokens.
The value of the token will depend on how many people use the DeFi protocol and on how many funds are locked in its smart contracts. Because privacy in smart contracts is a very rare feature and because there are so many different popular coins and tokens supported it could become quite successful. It has also a very low market cap and much room to grow. However, the vesting schedule could supress the price for a while.
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