The Sigmadex launch phase is split into 4 instances for the purpose of aligning with the Polkadot relay chain release schedule.
TGE - Q2
The token generation event will be held in the second quarter of 2021. This will help create the initial liquidity for the platform debut and circulate the native tokens in anticipation of the first iteration of Sigmadex.
First Iteration - Q3
Sigmadex will be prototyped on the Binance Smart Chain (BSC) for low latency and EVM compatibility as existing core components are written in Solidity. Game theory elements will be integrated into this architecture to achieve a viable product in a much earlier time frame. By building on BSC we can avoid unreasonable gas prices and network congestion while still being able to develop using Solidity-based Smart Contracts.
First iteration features on the BSC network will include:
- Seamless swapping of BEP20 tokens
- Time locked liquidity mining
- Community governance
- Deflationary mechanics
- Penalty mechanics
- Further game theory elements
- Bridge to Ethereum network
Why Binance Smart Chain?
The core objective of the BSC iteration is to demonstrate game theory elements in real-time without the latency issues that plague Ethereum's network.
Binance Smart Chain is a blockchain network developed by Binance in an attempt to create an ecosystem of DApps, NFTs, and other digital assets. Similar to Ethereum, developers can deploy native smart contracts onto BSC at significantly lower fees relative to other blockchains on the market today.
Bridging to Polkadot
In order to fully take advantage of the Polkadot interoperability layer, inherit native security components, and access cross-chain liquidity, we will bridge the native token to the relay chain when the Polkadot infrastructure is ready.
Second Iteration - Q4
The second release of Sigmadex is proposed to be deployed on a Substrate EVM pallet such as the Plasm Network Parachain. It will be able to operate and cross-communicate with other parachains on the Polkadot network while taking advantage of other Parachain bridges (such as Snowfork) for data communication and liquidity sharing.
Sigmadex is dedicated to expanding its game theory components by integrating non-fungible tokens for further gamification. These limited tokens will have the ability to override the existing rules and provide a unique advantage within the protocol.
Earning NFTs will be available once during genesis by participating in the public farming event after the private sale closure.
Exclusivity is to be predetermined with the community in mind. Some proposed NFT applications are as follows:
- Interest override token
Eg. If the default proposed interest rate is set to 5% and the NFT is 20%, the user will be entitled to the higher interest rate.
- Penalty forgiveness token (one-time use)
Eg. If the user possesses the penalty forgiveness token and attempts to call the
withdrawfunction prematurely, the NFT will allow the withdrawal of liquidity from the pool with no penalty incurred while self-destructing itself.
- Partial penalty forgiveness token (one-time use)
Eg. If the user possesses the partial penalty forgiveness token and attempts to call the withdraw function prematurely, the NFT will allow the withdrawal of liquidity from the pool with a predefined penalty relative to the NFT specification incurred while also self-destructing itself.
- Fractional penalty/interest token (one-time use)
Eg. If a user prematurely withdraws a portion of their stake but wishes to continue staking the remainder of their liquidity the penalty incurred would be less due to the remaining stake still remaining on the platform. However, the remaining liquidity on the platform receives a proportionally lower interest rate while also self-destructing itself.
Third Iteration - 2022
The proposed third iteration will have full Rust implementation and is proposed to run independently on its own Parachain. Sigma SDK will allow developers to seamlessly interact with its native blockchain to gather various market data and execute orders with near-immediate transaction speeds.
The entire protocol will exist as a set of on-chain smart contracts, leaving the order matching and execution process solely up to validators while operating fully decentralized running on IPFS.
Ownerless Synthetic Asset Creation
With community governance at the heart of decentralized finance, the ownerless creation of new asset classes is an exciting concept that is possible with Sigmadex. If communities can harvest the power to create synthetic classes in a measured and private way a more organic relationship between the community and the assets can emerge. This process will provide new avenues for synthetic assets not previously possible, further diversifying Sigmadex and the DeFi ecosystem as a whole.
Expansion into Decentralized Perpetuals
Perpetual contracts are an innovative derivatives product that is a hybrid between Spot margin trading and Futures trading. It has multiple characteristics which define them and which we propose to employ on Sigmadex.
- Integration of perpetual contracts into existing user experience
We propose 1 seamless user experience for the entire Sigmadex protocol.
- Integration of further native token staking for liquidity reserves
Allowing the protocol to remain healthy with sufficient backing.
- Hybrid constant product formula DAMM (Dynamic Automated Market Maker) with
kderived algorithmically based on several optimization parameters.