In this update we're sharing the latest news on the development of the Sigmadex Protocol and a recap of this months progress. We would like to thank our community for their continued enthusiasm and are thrilled to be joined by such a supportive group of people. Together, we are making this powerful game-theory infused protocol come to life!

Launchpad Coordination

August has been an exciting month as our team is getting closer to achieving a number of major goals we had set out to achieve early on. During the conception phase of Sigmadex our team discussed the long term future and what sort of requirements would be necessary to ensure our longevity. While we cannot disclose exact details at this time, we can share that Sigmadex is pursuing multiple reputable launchpads for our TGE and have participated in talks with the necessary parties to bring this goal to fruition. While we have yet to reach this monumental goal, we are well on our way and will be sharing guaranteed information once it becomes available.

We are entertaining multiple reputable centralized exchange partners for the Sigmadex TGE for two main reasons. The first being for adequate token liquidity and volume and the second reason is low barrier to entry for newcomers to obtain SDEX tokens.

While some of our supporters have been eager to see us launch quickly, we cannot hastily launch Sigmadex simply for the sake of launching. We are undertaking the necessary strategic plans to align ourselves prior to launch. There are numerous examples of projects that launched their projects only to find their token values plummet in a short period of time shortly thereafter. This is the exact scenario we want to avoid. Our team is working feverishly to ensure the best possible launch for Sigmadex and truly appreciate our community and their understanding during this critical phase.

Moving Closer to TGE

Our community is eager to know the official date of the Sigmadex TGE. Working to combine a centralized listing on a tier 1 launchpad for our TGE is the main bottleneck in establishing a hard date for this event. Working together with numerous partners to establish a date for our TGE means relying on external factors that are out of our hands. While our team can control the development of the Sigmadex protocol we still need to collaborate with other external parties to bring Sigmadex to market and establish an exact date for our TGE. We are working closely with our partners and are in constant communication to determine an exact date for this event and will be sharing this information as soon as it can be made public.

Refining Penalty Formula

If you are familiar with Sigmadex you know that the reward/penalty system is an important mechanism for the protocol. This system actively drives the ecosystem; penalties are a major part of the cyclical momentum of the Sigmadex protocol since they are distributed to users who go full term on their liquidity stake. Our development team has been hard at work creating and testing the mechanics of this penalty formula. This formula is proposed to use Net Present Value Analysis with penalties being calculated in perpetuity and compared to the remaining time in the initial stake. This method allows a more efficient and accurate penalty calculation for Sigmadex users. With so much importance on this particular mechanism in-depth testing is required to ensure its success.

The penalty ratio formula for rebalancing the market after unstaking liquidity as a function of time elapsed, total time originally staked, and time horizon can be expressed as:

$$ p(t)= \frac{T-t}{T+T_{long} -t} $$

p(t) : penalty ratio for original staking amount
t : percent of time elapsed since staking began
T : total amount of time originally staked
$T_{long}$ : horizon period for rebalancing the market pool

Selecting the time horizon is a matter of analyzing the discount rate (risk-weighted interest rate available to the liquidity provider in the DeFi community) and the volatility horizon used in the Dynamic Automatic Market Maker algorithm. These relations are currently being studied to optimize the time horizon used for calculating the penalty for unstaking liquidity. As our development team works to refine this formula, changes may still be made in the near future.

NFT Farming Event Audits

In recent months we announced a Public NFT Farming Event that would include a limited number of powerful NFTs for use with the Sigmadex protocol. These powerful tokens have the ability to override the standard parameters of the penalty/reward system and can provide holders with incredibly valuable one-off benefits.

To make sure these NFTs work as intended we have taken the steps over the last month to carefully begin auditing the function and testing of these various tokens. Since these NFTs work largely outside of the protocols dictated parameters extensive auditing and testing is required.

Market Conditions

Market conditions are improving since the brief downturn in early May with signs of stable and steady growth so far. The impact of the downward market allowed the Sigmadex team to focus on development, establishing new partnerships and continuing toward cementing factors regarding our TGE such as potential launchpads and liquidity partners. Since postponing our original timeframe for our TGE we have sparked a number of new relationships within the space, expanded our internal team and have on-boarded a number of prominent and experienced advisors to aid us in developing Sigmadex to it's fullest potential and bringing it to market. Paving the right path to ensure the best possible success for Sigmadex is critical.

While the market has stabilized our team remains adament that Sigmadex is immune to unfavorable market conditions. The market downturn did not cause any negative effects to our project rather it gave us the opportunity to grow substantially in every facet. We are building Sigmadex as a disrupter to the industry and we want our community to know that we will do everything within our power to ensure the longevity of this project. Crypto is constantly evolving and reinventing itself - This leaves opportunities for Sigmadex to continually improve, collaborate and add necessary features and functionality as time goes by.