What is Sigma Fund ?
Last updated
Last updated
Sigma fund is Sigma Finance's community investment fund whose goal is to profit from the growth of the zkSync ecosystem and generate crosschain yield through various strategies.
All investments will be decided by a vote of the $Sigma holders.
50% of the profits from Sigma Fund will go directly to buyback $SIGMA and distribute to vaults owners and the other
50% will go to the Treasury to ensure organic growth and to benefit from compound interest.
We have decided to allocate 30% of the Sigma fund to yield farming strategies & delta neutral . The goal is to maximize our returns while minimizing the risks associated with price fluctuations. Since only a few tokens are live on zkSync era, we will initially engage in cross-chain yield farming. Then, in the second phase, we will focus solely on zkSync era as this will also help to boost liquidity in the zkSync ecosystem.
Delta neutral strategies : crypto-to-stable LP positions with hedge against crypto price fluctuations
Real Yield : most of our strategies are based on protocols generating yield without rewards, e.g. Uni V3, GMX etc.
Also, as soon as possible we will integrate vaults with yield farming strategies and yield aggregator.
As we believe zkSync is a revolutionary technology with significant growth potential, we expect strong performance from protocols within the zkSync ecosystem. Therefore, 30% of the Sigma Fund will be allocated towards investing in promising established projects (beyond the funding phase). This will allow Sigma Finance to support protocols within the zkSync Era ecosystem while also exposing us to significant return on investment potential.
We have decided to allocate 40% of the Sigma fund to early-stage funding of protocols on the zkSync blockchain.
zkSync is a highly innovative blockchain and we are fortunate to be present at a time when the ecosystem is still in its early stages, with relatively few protocols, offering insane investment opportunities and growth potential.
Sigma Finance aims to invest in quality projects with high growth potential in the DeFi space. We aim for high returns for our community while minimizing risks.
We believe that a rigorous approach is necessary to invest in early-stage crypto projects. We conduct an in-depth analysis of each project and its team to determine its growth potential, risks, and opportunities. We favor projects with strong teams, innovative products, and an engaged community. Sigma holders will vote to choose the projects they prefer to fund so that our fund is completely decentralized.
