Introducing Sigma
We are building Sigma — a Convex Finance fork — to reward KLAYswap (KSP) stakers and lockers with additional DeFi yields.
While KLAYswap introduces novel incentives for users to participate in protocol governance, to earn the maximum rewards, users need to lock their KSP for 4 months or more, sacrificing liquidity. Though stakers can participate in redirecting LP rewards, it can sometimes be difficult for the average retail user to determine how to optimize liquidity redirection.
Sigma presents a capital efficient solution which affords users to earn the maximum boosted rewards from staking without having to lock their tokens.
Sigma aims to launch in Klaytn within Q2 2022.
How it Works
When users stake KSP in Sigma, they will receive the maximum boosted rewards without having to lock their tokens. In return for staking their KSP, they’ll receive sigKSP — a tokenized version of staked KSP — unlocking their liquidity.
A proportion of yield from KLAYswap voting pools (25%), operated by SIG stakers via Sigma governance will be distributed to sigKSP stakers.
For example KSP stakers with a 4 month lockup in KLAYswap at the moment would have received [10.94% reward] + [100% of voting pool yields of 1 vote per KSP] compared to sigKSP which would have no lockup and receive [43.13% reward] + [25% of voting pools yield of 8 vote per KSP]+ [25% of ecopot yield of 8 vote per KSP].
Accordingly, users are yielding over 33% more with Sigma while maintaining full liquidity.
Ecosystem Benefits
We believe Sigma will have a positive sum relationship with KLAYswap, which stands to benefit from our protocol. Specifically, Sigma can reduce downward pressure on KSP price by preventing farm & dump behavior as well as whale manipulation, while simultaneously increasing total governance participation by lowering the barrier to entry.
At an ecosystem level, protocols will stand to earn more accurate representation in KLAYswap governance via Sigma’s governance program. What’s not to love?
Wen Launch?
Sigma will launch on Klaytn Mainnet. Our vision is much bigger than just boosted KLAYswap staking. Sigma not only plans to be the premier destination for boosted yields on Klaytn, but also to be an active steward in growing Klaytn as a whole.
Expect to see partnerships announcements shortly — and be on the lookout for our token :)
Who’s Behind Sigma?
We’re a team of DeFi native builders who have worked at some of the top DeFi protocols and quantitative crypto trading firms.
What’s Next
We are currently working towards Testnet and aim to be live on Mainnet by Q2. In addition, we’ll be announcing the details of Sigma Mint — our public sale — soon.
Lastly, be on the look out as we open our community channels and begin sharing invites!
Follow us on Twitter (@sigmaklaytn) to keep with the latest news.
