Drops 20 : Sigma Protocol — ‘SIG’

KLAYswap

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KLAYswap

3 min readMay 31, 2022

Hello! KLAYswap Community!

Today, we are very excited to introduce the 20th KLAYswapDrops event to KLAYswap users — Sigma Protocol’s “SIG” !

1. Sigma Protocol — ‘SIG’

Sigma is a protocol with major focus of 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.

SIG Token is the governance and utility token of the Sigma Protocol. Users can use SIG tokens to earn rewards for the following activities:

- SIG-oUSDT LP Farm

Suppose you supply liquidity to the SIG-oUSDT LP pool. In that case, you will receive a reward of 10% of the total tokens for 2 years in proportion to the pool participants.

- KSP-sigKSP LP incentive

Suppose you supply liquidity to the KSP-sigKSP LP pool. In that case, you will receive a reward of 10% of the total tokens for 2 years in proportion to the pool participants.

- SIG Staking

SIG token holders can exercise their voting rights through vxSIG tokens received as a reward after converting to xSIG tokens through lockup. The detailed mechanism will be described later through the Sigma Protocol medium.

2. SIG airdrop period and amount, during KLAYswap Drops

SIG airdrop will be performed for 7 days, from June 7 to 13. Total amount of 250,000 SIG will be distributed to KLAYswap Drops; 150,000 SIG will be airdropped to vKSP holders, and 100,000 SIG will be airdropped to the major liquidity pools. The amount of airdrops obtained by the user is calculated based on the snapshot of the amount of vKSP held after KSP staking. Please note that the claim can be made from June 15th, not June 13th, when the snapshot ends.

3. How to participate in Drops

If you are a user who is currently staking KSP, you are automatically eligible for the new project airdrops that Drops offers. Tokens will be airdropped based on the snapshot of the user’s vKSP quantity after KSP staking, and the snapshot will be held once a day at 9:00 am (KST/UTC+9). In order to receive the airdrop, you must have vKSP before the snapshot

KSP staking guide

4. Token Allocation

Total supply : 100,000,000 SIG

Genesis Token Distribution

A total of 40,500,000 SIG tokens are released at the genesis of Sigma Protocol. The initial distribution of SIG is given to:

Sigma Mint Participants : 9,000,000 SIG
Liquidity : 500,000 SIG
KLAYSwap Drops: 250,000 SIG
Protocol Treasury : 30,250,000 SIG

SIG Incentive Programs

A total of 30,000,000 SIG token will be used as part of incentive program to bootstrap Sigma Protocol.

Lockdrop : 2,500,000 SIG tokens will be used to bootstrap initial sigKSP-KSP liquidity which is a vital part of the protocol as it provides liquidity to sigKSP holders whilst benefiting from boosted yields.
SIG-oUSDT LP Incentives : 10,000,000 SIG tokens will be used over 2 years to incentivize users to provide liquidity towards SIG-oUSDT LP. In order to minimize selling pressure of SIG incentives, users may receive boosted incentives by holding vxSIG
sigKSP-KSP LP Incentives : 7,500,000 SIG tokens will be used over 2 years to incentivize users to provide liquidity towards sigKSP-KSP LP. In order to minimize selling pressure of SIG incentives, users may receive boosted incentives by holding vxSIG
sigKSP Farm : 10,000,000 SIG tokens will be used over 1 years to incentivize users to mint sigKSP. In order to minimize selling pressure of SIG incentives, users may receive boosted incentives by holding vxSIG.

Check more info about SIG