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Sigmadex is working on delivering a user-friendly, multi-asset brokerage that solves liquidity challenges, latency challenges, and remains truly decentralized in the true vision of cryptocurrencies.
It intends to do this by incentivizing users for liquidity using game theory (more on that below). In short though, using a combination of DeFi solutions, community governance and voting, and XCMP to enable asset exchanges – Sigamdex arrives at a viable solution for most DEX challenges of today.
How Sigmadex Works
Sigmadex is employing game theory, DeFi, and blockchain tech, for building an open-source equalized decentralized economy, to in turn develop an exemplary automated liquidity protocol.
On the platform, every smart contract controlling liquidity governs a reserve pool consisting of native Sigmadex tokens and additional cryptocurrencies.
Game theory
Game theory – unique to Sigmadex – enables users to confine liquidity for a fixed time duration. How does it achieve this? Petitions to discard liquidity before the contract matures would result in a penalty lessening the tokens’ total allowance according to the leftover days and liquidity offering’s size. There are also token inflation prizes in place for long-term providers help enable absolute liquidity and stability for the community. Sigmadex users also furnish data around the locked-in liquidity for the ecosystem.
Time Locking Liquidity, Ecosystem flow
In the beginning, for putting in preliminary liquidity, users will be required to insert two types of tokens, as follows:
For first-timers:
Insert native tokens first.
Then, deposit secondary asset tokens (BTC, ETH, etc.)
Outline initial variables ( price, timelock duration, etc.)
Claim liquidity bits.
For Joining pre-existing liquidity pool additions:
Establish your desired time lock duration.
Now, deposit native tokens.
Deposit secondary asset tokens (BTC, ETH, etc.)
Claim liquidity bits
Role of the Sigmadex Native Token in Penalties
When staked liquidity is added on Sigmadex the collateralization is derived via two components:
Sigmadex native token
Secondary liquidity token
The native token has a number of functions that are utilized by the marketplace as a whole. Firstly, if stakes are prematurely unlocked, an important part of the token flow is the deflationary mechanism which reduces the overall token supply. As these penalties are executed the secondary collateralized coin goes into a pool which awards these penalty fees to those who follow the protocol and complete their staking cycles.
Community governance
Sigmadex users have the right to vote on crucial administration procedures that help regulate the protocol’s operation, thereby securing that it fulfills the demands and criteria of its community.
The Sigmadex native token, other than being utilized for staking liquidity, also serves as a governance token. Users will partake in community governance through the election of recommended pact voters for native token holders.
In terms of the governance level, the token will be able to allow:
Voting on substantial protocol modifications
Voting on characteristic implementations
Voting on inconsistent adjustments
Benefits of the Sigmadex Ecosystem
By utilizing the above-mentioned monetary policy, the Sigmadex ecosystem is able to generate perpetual liquidity for a wide variety of crypto assets. Sigmadex displays the amount of liquidity locked up under any asset showcasing the overall "health" of each pair. When individuals want to trade, they can confidently engage in exchanging knowing their asset values will remain stable as the lack of liquidity in the market they are participating in will be clearly visible.
Token Sale Information
Sigmadex has recently completed a private sale round which was backed by leading names in the industry : Genesis Block Ventures, Dext Ventures, and Itsblockchain Consulting.
They have plans to announce a public token sale very soon.
Thank you for reading.
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