July has been a positive and productive month that has brought forth many new developments to our protocol. Our team has been working hard behind the scenes reorganizing the foundation, confirming valuable partnerships, planning integrations and building the core components for our Token Generation Event.
Infrastructure Preparation
The TGE is our foremost focus for Sigmadex. Part of our planning and strategy for this event requires several integral items to be completed before going to market. These items include NFT farming pools, parameter determination event preparation and smart contract code audits (internally and from several external parties).
Team Expansion
Sigmadex has on-boarded new developer talent while also adding multiple reputable advisors from successful projects to the team over the last month.
Official Public Timeline Release
Sigmadex now has a more accurate outlook for its TGE and several launch phases. The team has decided to minimize the use of proxy contracts for security reasons and is leaning towards a scheduled full-version release approach.
Although the use of proxy contracts can grant us an easier and more modular product for supporting continual upgrades, it also exposes the entire protocol to security vulnerabilities as we continue to develop additional features outlined in our roadmap. Properly incentivizing users to migrate their liquidity from older versions to newer ones will be achieved through a balance of incentives in newer releases and disincentives in earlier ones. Consolidating TVL in its most up to date version is important for not only liquidity but growth and adoption.
We aim to release our official public timeline in August.
Confirming Partnerships
With so many different groups involved in DeFi there is an overwhelming number of potential partnerships that can be formed. Our team is fortunate enough to have a number of incredible partners by our side who share our passion and more importantly our philosophy in making Sigmadex the ultimate DeFi experience for both crypto newcomers and old timers. With this shared goal in mind we are exploring every possible avenue to find appropriate integration partners that will be mututally beneficial.
There are a number of different types of partnerships needed for a successful launch so our team is carefully selecting our partners based on our foundational ideologies. With longevity being one of our key business drivers, strategically selecting our partners and connections are an important part to our future success.
Entering the Genesis Phase
Sigmadex is being engineered to operate with community interests in mind while ultimately working towards a DAO structure. By following this philosophy we will require the initial protocol variables to be set by SDEX token holders after the token generation event.
An event will be hosted post TGE called the "Parameter Determination Event" (PDE) for establishing Sigmadex's initial parameter selection and will require contributors to lock up SDEX for a period of time to cast their votes on important variables. These parameters include interestRate restakeMultiplier penaltyRate and many others which are necessities to the inner workings of Sigmadex.
There are incentives to participating in governance polls. By locking up SDEX to cast votes, community supporters can earn yield on their tokens while having an impact on the protocol.
Governance Gatherings
Gatherings will take place once-a-month to discuss new features, improvements and proposed variable changes. Anybody may listen in on the conversation on our YouTube live-stream scheduled for the first of every month.
Weighing Votes
Votes are weighted based on the quantity of SDEX locked in the smart contract during the event and cumulative tokens locked by the voter in the past. This allows community supporters that have been more involved with Sigmadex in the past to have a greater input when deciding on the direction forward. Additionally, the logarithmic function used to weigh the sum of previous staked tokens for the votes will also ensure that voting power does not gradually consolidate to just a set of select few over time. The staked SDEX, along with interest and rewards can be withdrawn after the staking period is over which is located in all the Proposal Summaries.
$$V=S \cdot \ln(PS)$$
| Var | Description |
|---|---|
| V | Vote count per voter |
| S | Staked amount for current voting event |
| PS | Sum of all tokens staked for voting in past events |
| ln | log with base e |
Introducing Sigmadex Variable Proposals
Sigmadex Variable Proposals (SVP) are modifications requested to make parameter changes. These variables contribute to balancing the ecosystem and will change over time to ensure benefits are continually aligned in the most optimal way as the market matures.
SVP's technical details will be announced on our blog and social media profiles presented in the following format:
Eg. SVP-IR01
Summary
The interestRate180 modifier is to set the universal interest rate for locking up liquidity for half a year.
Submissions will be calculated using the following weighted formula and the variable will be set with the result:
$$V = S \cdot \ln(\sum PS)$$
| Var | Description |
|---|---|
| V | Votes |
| S | Staked amount for current voting event |
| PS | Previous staked amounts |
| ln | log with base e |
In order to have their votes counted in the voting event, users must hold a non-transferable Voter NFT, which can be acquired during Burn Events. These events are automatically triggered when the token supply is overly inflated in relation to its backing assets. This will ensure the ecosystem will continue to balance itself while providing attractive APYs and significant rewards to its liquidity providers.
Proposal Summary
| Description | Value |
|---|---|
| Start Date | 09/01/2021 |
| Length | 14 days |
| Participation Reward | 10% |
| Stake Period | 60 days |
Outcome
Anybody who locks up liquidity for 180 days will receive an SDEX reward after they call the withdraw function to remove their liquidity.
Introducing Sigmadex Enhancement Proposals
Sigmadex Enhancement Proposals (SEP) are requests to add enhancements to the protocol. These enhancements originate from the Sigmadex community forum and turn into proposals when there is a clear active interest from the community.
SEP technical details are announced on our blog and social media profiles presented in the following format:
Eg. SEP-FN01
Summary
FN01 proposal adds an insurance pool funded by penalties to replenish impermanent loss for liquidity providers. With this concept in place, bad protocol actors will benefit all users who respect Sigmadex's liquidity provisioning philosophy.
Proposal Summary
| Description | Value |
|---|---|
| Start Date | 09/15/2021 |
| Length | 7 days |
| Participation Reward | 15% |
| Stake Period | 30 days |
Outcome
If this proposal passes, the following will occur:
Penalties will be split into 3 different pools
- Burn (SDEX is removed from total supply to maintain a constant inflation rate)
- Impermanent Loss (distribution occurs when pools are imbalanced from unstaking)
- Positive Rewards (distribution occurs when contracts mature)
A date for the integration will be established after voting has completed.
Conclusion
As you can see, July has been a very exciting and eventful month for us at Sigmadex. We have been hard at work procuring integral relationships to propel our protocol to the next level. On top of that, our team has grown and our developers are hard at work to implement governance modules for the protocol inception.
Furthermore, we've released information on our upcoming Governance Gatherings as well as detailed information on our Parameter Determination Event and voting measures. With our TGE date announcement just around the corner we are excited to be one step closer to our dream of disrupting the decentralized finance industry and cementing our name and brand as a leader in the industry.
Stay tuned to our social channels for up to date information on Sigmadex!
