Sigmadex is building an open-source balanced decentralized economy using game theory, DeFi, and blockchain technology to create the ideal automated liquidity protocol. It eliminates the requirement for having to trust any intermediaries, prioritizes decentralization, and is governed by the community.
Each smart contract managing liquidity manages a pool made up of reserves which contain native Sigmadex tokens and another cryptocurrency.
More liquidity equals less price volatility
All liquidity smart contracts are programmed with automated market makers using a constant product formula. These pool contracts can accept one token for another as long as the “constant product” formula is applicable. This simple formula, which is expressed as
x * y = z, ensures that trades will follow the correct pool value (
z) of the smart contract's reserve balances (
x,y) during an active trade. The only time the
z value changes are when liquidity is added or removed from the pool.