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SIGH Finance

SIGH Finance consists of an on-chain lending protocol designed to farm 'Volatility-Risk' of the supported instruments and an off-chain network intelligence infrastructure to study, develop and optimize crypto-econometric models supported by Digital Curation Markets (DCM).

SIGH Finance

Created At

MarketMake

Project Description

Users can participate as either depositors or borrowers with the on-chain lending protocol, where both receive harvested SIGH whenever the underlying market moves against their current position, as a percentage of the Volatility (bull ratio / bear ratio) experienced by the underlying instrument over the past 24 hrs. -- Depositors provide liquidity to the protocol by depositing any of the supported instruments against which they receive the protocol-issued iTokens which constantly accrue interest and farm SIGH whenever the price of the underlying instrument decreases (-) over the past 24 hrs. -- Borrowers can take loans from the lending protocol against their deposits which act as collateral at either stable or a variable interest rate. They farm SIGH whenever the price of the underlying instrument increases (+) over the past 24 hrs . Th SIGH harvest rate is refreshed every hour, and takes into account the instrument's volatility over the past 24 hours. Stable coins, being less volatile, do not farm volatility risk and instead receive SIGH instrument as staking rewards at a pre-determined rate which is decided via Governance. SIGH is the Governance token which is used to decide upon network parameters and its future upgrades through voting. Later, a community lead Treasury will be added which will use SIGH to support a Digital Investment Market (DIM) designed to off-set the 'Volatility Risk' farmed via the token SIGH.

Continuous R&D - As part of our off-chain Network Intelligence Infrastructure, we will be developing tools and capabilities to study, develop and optimize digital Curation Markets to develop simulated models and predictive techniques (using A.I) to analyse and then optimize tokenized financial networks / crypto-economic models, starting with initially creating the infrastructure for simulating SIGH's curation market metrics and its potential loss curve to optimize network performance.

How it's Made

SIGH Finance's Infrastructure design is split into 2 parts, the on-chain 'Financial Infrastructure' which is implemented as a set of contracts on the blockchain and the off-chain 'Network Intelligence' capabilities which refers to the continuous R&D into Digital Curation Markets (DCMs), which are crypto-econometric models made possible by a combination of different technologies being applied together like bonding curves, econometric designs, state channels and game theory.

On-Chain Lending Protocol - It is live at http://sigh.finance/, while the documentation is live at http://docs.sigh.finance/. Lending protocol is built-upon the Aave's v2 contracts. NFTs have been added as discount coupons which can be recharged via top-ups. NFT coupon holders get discount when farming SIGH, the instrument which harvests the 'Volatility Risk' of over their deposit / borrow positions.

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