Liquidity is the name of the game when it comes to DeFi and that is why Sigma Labs is introducing a unique model to gather permanent liquidity for accurate token price discovery and overall ecosystem stabilization.

Why Participate?

  • Permanent
    Unlike farmed APY NFTs which can be forefitted if the staker decides to remove their stake prematurely, Genesis NFTs are forever and cannot be burned when deciding to unstake at any point.
  • 2,000 Maximum
    Minting event will not exceed a total of 2,000 NFTs making only a select few have the power to earn rewards from their utility.
  • Beats Inflation
    For over a decade the average inflation rate was between 2 and 3%. The lowest APY NFT is 4% on SigmaFi making it a great secondary asset to hedge against inflation.
  • Fair Acquisition Mechanism
    Anybody can send whatever amount they want to the liquidity transformer smart contract. Supply and demand will decide where each NFTs value will reside.
  • High Yield
    Sigma Permanent NFTs provide the highest stabilized yields in the finance industry. While many can promise unsustainable APYs, SigmaFi has balanced its ecosystem through game theory components and fee generation.
  • Value Beyond Art
    Unlike most NFT collectibles, Sigma Permanent NFTs are not just static images. They can be attached to several SigmaFi Smart Contracts to earn rewards.
  • Resellable
    Genesis NFTs can be sold on the secondary market at anytime as the Sigma protocol becomes widely adopted.
  • Composable
    Sigma Labs will integrate further utility and collectability into all Permanent NFTs minted during this event and will expand into other areas, creating further value outside of the SDEX ecosystem.

Why Complicate Things

When we released the latest update to our token economic model, one of the most frequent responses that we received was:

“Why is it so complex— why didn’t you stick to traditional models like everyone else?”

The main reason is that innovation fuels our soul. The Sigma Labs team is constantly questioning models that the masses have adopted; finding ways to improve efficiencies and creating systems with more sound incentives is what made us build a unique DeFi protocol in the first place.

Striving to achieve this will always drive our decisions. However, we believe that innovation is not a goal in and of itself, rather, it is the answer to solving existing problems and inefficiencies.

How It Works

Anybody may send AVAX to the transformation contract. The one that sends the highest amount will receive the highest and rarest Permanent APY NFT. After the event is closed, all capital in the pool will fill the SDEX/AVAX liquidity pool on Sushi Swap Permanently!

The table below reveals the rarity levels of the initial 2,000 Genesis NFTs. These NFTs provide yield when staking SDEX in the SigmaFi app. We've created a simplified regression based on:

$$ab^x$$

We used this formula to come up with a stabilized High APY vs Rarity model as shown below.

Maximum APY        Rarity
200% 1
150% 3
100% 6
80% 18
60% 36
40% 48
20% 96
10% 120
4% 1672

All Permanent APY NFTs are attached to the Sigma Curve until they reach their maximum inflation value. We designed it this way to encourage holding for a certain period of time before obtaining maximum ROI as instant gratification is what contributes to turmoil and volatility in markets. The psychology behind this is that once the staker has reached their maximum APY, they will be discouraged from unstaking as they will have to restart the process again if they decide to re-enter the ecosystem to obtain maximum value.

Proposed Parameters

  • 30 day transformation process
  • Highest AVAX contribution address will claim the highest value NFT
  • Distribution for others will be based on the delta between the top contribution and a total of the 2,000 NFTs available
  • Contributions that exceed 2,000 will be sent back to the wallet they came from

Looking forward to a community discussion around the above parameters.