As DeFi gains popularity and becomes a reliable financial solution, the number of newcomers to DeFi continues to grow. With so many people jumping into the space for the first time there becomes a need for not only accessible and easy-to-understand platforms but also for a safer and more approachable decentralized financial system as a whole.
Sigmadex addresses both these issues to fulfill our goal of bringing newcomers into DeFi regardless of skill or experience. Sigmadex is being built to be user-friendly and approachable through the use of numerous practical data sets. These data sets showcase users the most important information they need to know when locking up their liquidity or executing on swaps. This data coupled with our game theory infused penalty and rewards system will provide the best possible DeFi experience for newcomers.
Aimed at retail investors 👪
When a technological concept breaks through the barriers of popular culture's understanding the outcomes are endless. In order for amazing things to happen the concept must be clear, concise, and approachable for every user regardless of skill or knowledge.
Imagine yourself as a newcomer to DeFi, what sort of knowledge might you possess? What have you heard about DeFi or cryptocurrency? There's a lot to know in order to make the best possible decision for your capital. The development of Sigmadex has been seen through the lens of retail investors of all levels in order to be as useful and advantageous as possible. Our careful and conscious approach to creating Sigmadex is time-consuming and requires meticulous planning and patience. The importance of making the on-boarding process simple for people moving from fiat currency to cryptocurrency is one of our top priorities. We recognize that our platform may serve as our user's first foray into decentralized finance so ensuring their experience is smooth and seamless is critical.
The Sigmadex protocol is built to make it easy for any type of individual to enter into the DeFi space with a stable foundational layer of time-locked liquidity. Retail investors can finally enter the market knowing that their liquidity won't vanish the following day as seen on other solutions like Uniswap.
We believe the transformative power of a system that incentivizes time-locked liquidity and penalizes market manipulation will ripple throughout the world.
The Sigmadex user interface features powerful and reliable data sets that show users exactly how much liquidity is locked up for any asset of their choosing. We aim to provide stable and safe opportunities for our users to stake their money by penalizing those who remove their liquidity prematurely.
Unlike other platforms, Sigmadex users will have access to valuable data-driven insight that provides critical information users will need to supply liquidity to enter into the market safely. Following the intuitive nature of how an individual would stake their liquidity on Sigmadex for the first time allows us to create an accurate and useful bridge into DeFi.
The total amount of liquidity + locked liquidity for assets as well as the fluctuations within those amounts are the first pieces of data Sigmadex users will see. In addition, there are many other valuable data points concerning the state of contracts for any particular asset.
Paving the way for new projects
The coupling of valuable data sets and time-locking liquidity will be a game-changing combination that benefits everyone involved. It can also pave the way for emerging projects as new tokens are constantly being created. These new projects will be able to sustain themselves if the liquidity for their token is locked up until a stable market can emerge.
Imagine if new projects could launch where the liquidity of their token is no longer in a fragile state but instead has vested liquidity. A solid foundation of initial guaranteed capital could bolster the market like never before.
Mutual Funds Vs Sigmadex
Nearly 46% of American households own mutual funds as an investment vehicle. While banks push these to their clients as a safe way to make money long term they actually perform poorly and can lose out to other forms of investment vehicles such as ETF's in the long run. In addition, regardless how your mutual fund performs fees still must be paid to the bank. Since the banks have a massive client base and unavoidable recurring fees they have little incentive to make you the most money possible.
With nothing to lose for the banks and limited options for unaware investors, mutual funds continue to be sold as the most common "get rich slowly" solution to a retail investor.
Sigmadex liquidity mining can be viewed as an optimized version of a mutual fund. In this case, individuals are offered the chance to supply liquidity for digital assets as their investment vehicle. This differs from a mutual fund in that the penalties for removing liquidity prematurely as well as the transaction fees earned from supplying liquidity during the stake are shared with the community upon their maturity. Penalties are pooled and distributed to individuals who do not prematurely remove their liquidity.
- The investment serves a purpose (adds liquidity to the ecosystem)
- The digital assets are being put to use (transaction fees)
- Penalties are distributed to individuals whose contracts reach full maturity
Better for everyone 🙏
Looking at the future of DeFi apps, we constantly analyze ways to improve the user experience for everyone involved not just those with big capital. By mitigating as much risk as possible through the careful development of the Sigmadex protocol's penalty/reward system and time-locked liquidity mining we hope to show the world that there are alternative ways of making liquidity work in your favor.
We hope our future community shares our philosophy and passion for the platform we are building and grasps its transformative power to the current state of DeFi. Together we can change things for the better.