Traditional finance offers a wide variety of long-term investment verticals for non-savvy retail investors who simply wish to adopt the "set it and forget it" approach to investing. Financial advisors and personal bankers from all over the world further this safe, long-term approach to locking up capital by enabling the public to easily obtain exposure to bonds, stocks, and other investments without knowledge of new options available to them.
Sigmadex aims to provide alternative options for retail investors and bring these individuals into Sigmadex to supply long-lasting liquidity while giving them the opportunity to have substantial long-term upside and diversification for their portfolios.
Liquidity as an investment can be a viable option for the numerous retail investors out there in addition to traditional options. Capitalizing on emerging opportunities such as time locked liquidity can prove beneficial with a long-term strategy.
Warren Buffett's long-term influence
Long-term investments are the chosen strategy of some of the wealthiest people on the planet. Warren Buffet became the sixth richest person in the world by identifying his long-term strategy and developing a philosophy where he would invest in companies with solid fundamentals, strong earning power and potential for continued growth. No different to companies that belong in their own sectors of industry with their own technologies and patents; cryptocurrencies have their own utilities that operate their own way. The same strategies that apply to Warren Buffet's strategy can apply to those who use Sigmadex.
Gateway to liquidity as an investment
Sigmadex has created a unique investment vertical which provides the average crypto investors with healthy exposure to the crypto market by locking assets in a time locked liquidity smart contract. These contracts provide liquidity on the Sigmadex protocol and have multiple DeFi elements engineered into them making them an attractive asset for long-term growth.
This type of exposure contributes positively to the crypto ecosystem by injecting continuous liquidity into the market while giving liquidity providers several ways of earning interest on their locked capital.
Earn from asset appreciation
There are many ways to benefit from time locked liquidity, the most prominent of those being the appreciation of the asset itself.
Liquidity pools require the deposit of assets, and as those assets remain in the pool they can gain value as the price of the asset fluctuates in tandem with the market. This fluctuation, especially within the context of a long-term liquidity bonding strategy, is often advantageous for an investor. Since a long-term strategy helps to eliminate emotional reactions to the market and assets within, investors don't lose sleep over short-term fluctuations of their holdings. This maximizes the potential for a larger return over the course of time in addition to the many other advantages of using Sigmadex.
Earn from transaction fees
Whenever a swap transaction is executed on Sigmadex, fees generated are injected back into liquidity pools and eventually end up in the hands of SDEX token holders who follow protocol. These fees are earned passively without any interaction required by the user.
Earn from bad protocol actors via penalty system
Since the penalties incurred by individuals who prematurely remove their liquidity get rolled back into the Sigmadex ecosystem, users can take advantage of our unique deflationary policy without any action as long as they continue to stake their liquidity. This passive form of benefit perpetuates the inflationary drive of the SDEX token.
Earn interest from inflation
Inflationary interest is earned on all locked up liquidity for the purpose of balancing the protocols deflationary penalty policy. This basic interest rate provides a generic foundation for earning rewards by locking up assets for liquidity provisioning.
More long-term liquidity into the crypto market
Liquidity helps projects flourish by ensuring there is enough financial backing to sustain growth over longer periods of time. Since these projects are built for sustainability the investments put into these projects and their tokens have a better chance of generating higher ROI over time as development continues.
Addresses the rug pulling issue
To combat market manipulation we provide incentives for the placement of long-term liquidity as a balance to the ecosystem. Time locked liquidity works towards stabilizing the market and provides real utility for liquidity beyond the short term buy/sell activity that the space is used to. With more stable prices comes a steadier growth trajectory and accurate price equilibrium.
Overall growth, security, awareness and stability
Sigmadex provides a strategic foundation of locked in liquidity that many users and projects can benefit from.
Crypto assets being put to work
Inspired by mutual funds, Sigmadex brings liquidity bonding into the spotlight for long-term investors who wish to have healthy cryptocurrency exposure without having to constantly worry about their portfolio. By using risk management and Sigmadex, individuals will have the opportunity to create a future filled with wealth in a much shorter period of time than traditional options. Time locked liquidity helps to balance crypto values and stabilizes crypto assets making violent volatility less likely. This leads us to the conclusion that time locked liquidity is a safer play for any investor.
Opportunity for traditional investors
When people think of investing they often think of the options provided by the traditional banking system due to familiarity. These options are a well travelled road for generations of people marching the same path towards mutual funds, bonds, stocks, and group plans. Sigmadex plans to attract long-term investors who are new to crypto and are able to see the similarities and benefits of Sigmadex in addition to their existing investment knowledge. Providing access to time locked liquidity for retail investors will provide ample benefits for everyone involved.
Since the Sigmadex protocol takes market manipulation out of the equation a realistic version of the crypto market can emerge. Whales can no longer sway the market in their favor with ease. As investors increasingly lock up their liquidity the more valid an asset becomes and a more mature market can evolve.