How does it work ?

◽ Vaults

To invest in the protocol you need to buy a Vault on our dapp. A vault is a smart contract in which you deposit your $Sigmas and which allows you to generate a sustainable passive income while investing in the Sigma Fund.In other words, buying a vault means locking your $Sigma in exchange for a reward.

◽ Rewards

Rewards are collected in $Sigma and come from the reward pool (which represents 60% of the total supply). Rewards are distributed every 24 hours.As our goal is to make exclusive investment opportunities available to everyone, there will be different types of Vaults at scaled prices. The daily reward depends on the Vault purchased. To buy a Vault you must first buy the $Sigma token on SyncSwap (set slippage to 6%). Then go to the Sigma Finance dApp and buy the vault of your choice based on the amount of $Sigma you have.

◽ What is the point of buying multiple vaults ?

You should think of vaults as shares of Sigma Finance. Buying multiple vaults has a significant benefit: Your share of the reward pool increases Your share of dividends generated by Sigma Fund investments increases The income generated by the protocol is redistributed in proportion to the number of vaults purchased by the user.This means that the user who has purchased the most Vault Gamma is the one who will get the most reward and benefits from the Sigma Fund.

◽ Sustainability

If a protocol has high and unrealistic rewards from its inception, it will not be sustainable long term. While it’s appealing that you may get your ROI faster, it also means that the protocol has a higher chance of running out of liquidity to pay out investors.To remediate to this problem, we choose to set up lower and more realistic rewards, which is much better for the protocol and the investors. It gives longevity to the protocol and it gives time to adapt to volatile market conditions.We want to grow together and build something healthy & sustainable for the long term. By becoming an essential protocol for zkSync DeFi ecosystem and for protocols that want to get funded and get started.