Sigmadex Co-Founder Peter Danihel recently did an AMA with Thor from CryptoBanter to discuss more about the Sigmadex protocol and the future of the platform. Check it out below!
Thor (Moderator): Welcome Peter!
Peter (Sigmadex): Thanks for having me guys
Thor (Moderator): Hey Peter, nice to have you on Crypto Banter - Can you let me know what exactly Sigmadex plans to do?
Peter (Sigmadex): Good morning Thor. Sigmadex is concentrating on building a liquidity protocol which introduces multiple DeFi elements to provide value higher than traditional applications by using game theory.
Thor (Moderator): I saw on your website that Sigmadex is trying to fix some exchanges & Crypto finance problems. What is the actual problem with the current exchanges and the crypto finance sector? How do you plan on fixing these problems?
Peter (Sigmadex): Good question. Some notable issues which plague the current exchange landscape are:
- Market manipulation
- Minimal incentives to hold liquidity in pools
- Overcollaterization when it comes to lending and synthetic assets
Our response to these issues are the following:
By using multiple liquidity staking incentives and a deflationary monetary token policy, we are able to conquer one of the biggest problems in the space which is... market manipulation. Integrating these components will open up a new dataset for traders to gain visibility on how healthy the market really is. Traders will be able to see how much liquidity is tied up and how long their vesting periods are while providing retail with the ability to increase their earnings outside unbiased DeFi elements such as Tx fee sharing.
Thor (Moderator): That sounds so cool - and I'd really need something like this. On the pools/farming part, will Sigmadex also have an Impermanent loss? Or will that be controlled?
Peter (Sigmadex): By providing liquidity in pools impermanent losses can be incurred just like any other protocol. Although we plan on providing users with data to assess the market state to combat it, there are no simple solutions at the moment to impermanent losses besides offering multiple DeFi elements to further earnings. We hope by introducing many ways of compounding earnings, these losses won't have much effect on the users overall portfolio.
Thor (Moderator): Compounding sounds awesome. I see on your website that Sigmadex will be powered by Polkadot. How will the token be created & issued? Will you start on Substrate directly?
Peter (Sigmadex): The proposed TGE will be ERC-20 based and bridged to Binance Smart Chain to work with the first iteration of Sigmadex. Once the Polkadot infrastructure is completed, we will then bridge to their relay chain. Smart Contracts will be migrated to Rust in parallel for Kusama deployment. We released our proposed roadmap on our blog a few days ago, there is more information on there. As you guys know, the crypto landscape literally changes by the day so the roadmap will be adjusted accordingly!
Thor (Moderator): Regarding security, have you made an audit of the project? How will Sigmadex create top notch security for its platform?
Peter (Sigmadex): Several thorough smart contract audits will be conducted on all components of the application when Sigmadex goes live. Security is key to us and we will not sacrifice security to hit any arbitrary deadlines, especially this early on in the project.
Thor (Moderator): Great thinking. Will stay tuned for more information in the future. How do you plan to incentivize users and traders to use Sigmadex?
Peter (Sigmadex): We have multiple ways of incentivizing users:
- Farming limited supply NFTs (which will be used on Sigmadex)
- Multiple game theory elements
- Reward pools
- Early adopter bonuses
- Restaking interest amplifiers
These ways are just scraping the surface of what is to come.
Thor (Moderator): That sounds more than great. Do you have a collaboration or partnership with any notable name in the industry that you can disclose? If not, do you plan to do any?
Peter (Sigmadex): We have several notable partnerships in our pipeline and will release announcements as they become formalized.
Thor (Moderator): One of the most important things on a crypto project is a strong community. Do you guys have any plans to get volunteers for community managers once the community reaches a certain threshold?
Peter (Sigmadex): We currently have a dedicated team handling our community and are prepared for a lot of future growth 😃
Thor (Moderator): Awesome to hear that. What are the plans for the next 3 months?
Peter (Sigmadex): Our focus over the next 3 months is to accomplish the TGE, deploy a stable version of Sigmadex on Binance Smart Chain, and adapt to the Polkadot timeline as it changes rapidly!
Thor (Moderator): Thanks Peter, for an awesome AMA. Wish you the best of luck with Sigmadex. It already looks like a very solid project; I'm hyped for what's to come.