Problems

The current exchange landscape in crypto finance is highly fragmented.

  • Liquidity and latency issues plague the current decentralized exchanges. This makes volatility a natural occurrence when entering the cryptocurrency space and typically stems from thin order books and a lack of adequate liquidity.
  • Current mainstream protocols do not protect from impermanent loss. Pairing and adding liquidity in current protocols exposes risks to price volatility on non stable pairs.
  • Current DEXs are limited to their own networks. Current solutions lack interoperability and have blockchain boundaries that can't be crossed inserting limitations on cross-chain value transfer.
  • Not enough incentives for end-user liquidity provisioning. Traditional protocols have minimal incentives to stake liquidity and often only have rewards which don't outweigh the risks.
  • Rug pulls are rampant and frequent among current liquidity protocols. Traders have no protection against massive liquidity pull outs on existing platforms.

Solutions

Create a decentralized, user-friendly, multi-asset brokerage with low latency and community governance.

  • Incentivize fair liquidity staking using game theory elements. By mixing game theory in the native token supply and staking mechanics, we anticipate a number of benefits for the community while keeping the economy motivated and within symmetry.
  • Introduce various decentralized finance opportunities. Multiple DeFi solutions for native token stakers are a necessity to provide users with several earning opportunities.
  • Use early-withdrawal penalties to replenish/rebalance liquidity pools. Keeping the protocol balanced while keeping incentives dynamic will allow for a healthy SDEX ecosystem.
  • Allow the protocol variables to be governed by the community. By holding a substantial stake in tokens, end-users will be able to participate in the voting and governance process in modifying certain protocol variables.
  • Utilize XCMP and bridges to exchange assets across multiple networks. Cross-chain message passing using Substrate will enable Sigmadex to be in communication with other parachains enabling the exchange of assets from Ethereum, Cosmos, and other blockchain networks.