It was last year that we covered the $11.2 million fundraiser for Sienna Network, the “decentralized privacy” startup. The network is built on top of the secret network, which allows asset holders to upgrade to privacy-focused tokens. Privacy-based financial blockchain projects are crucial for “DeFi” to work properly, otherwise normal financial transactions – which are normally private in the world of traditional finance – will struggle to take off.
Sienna is among several other blockchain startups trying to prevent “front-running,” where transactions on Ethereum can be pre-empted by someone else simply by paying higher transaction fees — just like takeout. on a stock exchange transaction by paying higher fees to a broker.
Sienna Network has now launched its private crypto lending platform, dubbed SiennaLend. The company claims that crypto users can use the platform to earn interest on their crypto and also borrow crypto from the platform – all privately. The platform will compete in this space with Uniswap and PancakeSwap, but claims to have more features than both.
SiennaLend is (obviously) built on top of the secret network, which – according to the company – offers greater security and safety compared to open, non-private blockchains such as Ethereum, Solana and others.
SiennaLend’s pitch to the market is that its lower gas prices will make it more attractive to retail investors.
“Paying a $150 transaction fee to make a $200 loan doesn’t make much sense and that’s another big plus for SiennaLend. Gas charges are counted in cents rather than dollars because the scalability of blockchains is much higher. We spent 15 months in stealth, polishing this absolute game-changer for crypto and its rise to the next level of mainstream finance,” said Monty Munford, Chief Evangelist, Sienna Network, in a statement.
Sienna Network says “Personally Identifiable Information (PII)” means users can “go back” and view their wallet holdings and transaction history through their wallet address. It will also offer loans against collateral, as would happen with traditional loans, by allowing users to deposit into a pool and choose to earn interest or borrow based on that deposit. The idea is that traders can more easily defend against current market volatility.
Lending protocols like this in DeFI are widely observed to take off, despite market volatility, as they offer more collateral to crypto holders. Cryptocurrency-based lending has become a widely used aspect of DeFi.
Being built on Secret Network, Sienna Network/SiennaLand is also part of the Cosmos ecosystem, recently upgraded to be part of IBC. Cosmos competes – like Polkadot, also a “blockchain internet”.