Welcome to Sikka Docs 👋
Find information on Sikka, its security features, SIKKA stable asset and what you can do with it, roadmap of the project, important development details, and more.
About Sikka
Sikka is a cross-chain lending protocol on Polygon that allows users to borrow the SIKKA stable asset against their staked MATIC assets, and earn additional yields from the SIKKA yield-bearing stable asset in a single debt position against a low interest.
It aims to provide competitive yield in a sustainable way, enabling the majority of users to profit from the increased money velocity of crypto markets.
Stable Asset
SIKKA is a next-generation USD stable asset. It is backed by OVER collateralizing MATIC to ensure ease of use and stability.
Borrowing
Sikka Protocol provides a secure and reliable way for users to collateralize their MATIC and borrow SIKKA against it.
Staking
Sikka’s MATIC Liquid Staking feature allows Sikka to stake MATIC while collateralizing it.
When MATIC is deposited in a whitelisted pool, it generates aMATICc — a special reward-bearing token that represents the depositor’s part ownership of the pool, allowing them to borrow the SIKKA stable asset at a collateral ratio determined by the governing rules. As a liquid staking token, aMATICc generates rewards that are accumulated in Sikka Revenue Pool and used to reward active users who farm LP tokens received for depositing SIKKA into liquidity pools.
Yield
Sikka provides yield opportunities to the users who:
- Deposit SIKKA into a liquidity pool thus enabling a user to gain a yield of up to 11.49%.
- Farm the LP token received for depositing SIKKA into liquidity pools.
Also, Sikka accumulates yield for itself from 3 primary sources: borrowing interest, liquid staking rewards, and swap fees from deposits into liquidity pools on DEXs. This combination maximizes potential yields because it covers various use case scenarios. Interest and swap fees will be driven by protocol usage as well as the supply and demand balance. At the same time, Proof-of-Stake liquid staking rewards will be generated as a result of the economic activity on-chain. Such diversified activity ensures that network validators staking native tokens keep on generating yield as more transactions occur.
Build
Sikka is built as a layer-2 smart contract platform that’s Polygon-compatible and optimized for DeFi with built-in liquidity and ready-made financial applications. With its decentralized stable asset, MATIC liquid staking, borrowing, yield farming, and depositing the stable asset into liquidity pools, Sikka helps crypto holders unleash the maximum potential of Polygon and the full power of MakerDAO.