- Time: November 27th, 2021 at 8AM UTC
- Project name: X-Sigma
- Host: Kristen from Blockchain Army
- Guest speakers: Alex Lebed | CTO
- Main content:
- Part 1: Project Overview
- Part 2: Team
- Part 3: Tokenomics
- Part 4: Security
- Part 5: Roadmap
- Part 6: Marketing Strategy
- Part 7: Community Q&A
1. Would you like to introduce yourself a little bit?
Alex: My name is Alex Libeth. I’m a CTO of X-Sigma labs, a subsidiary of music international nasdaq traded company and happy to be in your video AMA. This is my first video AMA format I have ever been to so I am a little bit nervous.
2. Before we get deeper into the project, would you like to tell us about the vision of X-Sigma?
Alex: So how does it structurally look like, where is this international cooperation which does a lot of stuff and they start doing things like the internet of things and naturally move to the blockchain. I believe in 2017 around that. They opened this experimental lab which is trying new stuff like on a new device like new finance primitives known as DeFi. The core vision is to try to breach the gap between the classical finance and this innovation finance known as DeFi. I guess it’s a unique value proposition because there are a lot of very big cool projects like let’s say Coinbase right. Coinbase is like a super huge, super innovative and stuff like Sigma unable to compete with this project of course but what it is able to do is bring first hand like the first world DeFi where distance for decentralization like there is no backdoor it’s not custodial stuff like that. It’s a real blockchain DeFi project but from corporations which usually do something like centralized so it’s ideally trying to be the best of two worlds. One of them is a centralized trusted entity nasdaq traded and another one is not custodial DeFi over for decentralization projects. To bridge backup this is kind of like journal vision and all current projects are an attempt of this implementation of such visions.
3. Can you tell the audience more about the platform and how can users join that process?
Alex: There are several projects so I guess the goal of this AMA is to cover stable coin decks primarily. There are lots of stable coins right now in the market. How a market looks like for people just as a reminder there is a Bitcoin which is worth like half of all cryptocurrency. Ethereum which is similar to Bitcoin on steroids can deal with smart contracts. Everything else just revolves around this too. All markets behave like a derivative essentially of Bitcoin. Bitcoin goes down, everything goes down except assets which do not correlate. The most famous asset is the dollar and on the blockchain we have a special blockchain called dollars which are called stablecoins which are like dollars or euros on a blockchain. Right now, it’s kind of a lot of them but not as much as you think. Less than six percent of all cryptocurrency market cups are held in a stable coin so the biggest one is USDT and USDC. There are like one hormone balance and one formatter and stuff like that. The majority of these stable coins are centralized. Despite being held on an Ethereum decentralized blockchain which could not be frozen but a stable coin itself can be frozen. Why? Because how it works is you have a centralized corporation like a coin base or a bit of phoenix. What they do is promise to redeem your rc20. It’s the name of tokens on Ethereum colors and you can redeem it for dollars. However, they can just stop doing that because they don’t like it. Therefore, it’s a risk of possession of these stable coins and there are new types of stable coins like a maker DAO die which is as good as USDT, USDC. Yet, it cannot be frozen at all. It was just backed not by a corporation but a special smart contract which held e4 like it was coined on Ethereum as a collateral. In addition, it cannot be frozen so all walls are unstoppable but unfortunately the absolute majority of a stable coin out of 100 I believe 70 billion dollars right now market cup of stable coins 96 are centralized. Thus, it’s a risk and what X-Sigma does here is trying to do a stable coin swap similar to curve but with much easier farming technique and governance. Basically, you can exchange one stable coin like a USDT to an hour stablecoin like a die with easy access. Also, there are some mechanics like a cashback and ability to use governance talking calls to claim these fees from exchange. It’s available not only on a website but from a one inch exchange aggregator in our project. I personally work on a gold stable unit. I am kind of a contributor. It’s an attempt of doing this die analog but using collateral to generate profit and redistribute it back to every single user. So those are two projects I’m currently working on and they are very complementary. The sigma works on a nft platform in collaboration with a maxim magazine. It’s like an analog of a playboy and this nft market is also quite huge. So what X-Sigma is trying to do is to fuse these two distinctive types of assets like nft and erc20 and make it interchangeable and bring best over two worlds. I think that’s pretty much some of the whole vision and the big picture of X-Sigma.
Part 2: TEAM
4. How many members are there that are working with you right now and how do they contribute? What are their positions in the whole business model of X-Sigma?
Alex: The current employees are listed on a website of a lab xsigma.com. I didn’t check it for a while so i don’t know who is hiring right now exactly. I believe we’re celibacy developers are always in need so it’s a common practice because bull run hype just like wacom cleaned the pool of talent on the market. It’s ridiculously complicated to hire selected developers, especially good ones, so if any of you know many people please refer to us. Be happy to share a referral bonus which is usually half of monthly salary or one third to half of monthly salary and which is substantial salaries and sales. Anyone who watches knows such people please recommend and get your huge referral bonus. There are not only developers but also marketers. Unfortunately the policy of zika vote they do not share internal organization details. Therefore, I have to obey what they policy and cannot really tell but I work with developers directly and there is like a big marketer team of community managers and PR people and stuff like that so like a whole spectrum. I believe the last time I checked it was probably around 20 people in total but right now maybe more because of his nfc and derivative. I’m working on a deck somewhere, so basically you guys are still on the progress of building up the whole team to be stronger and how much your fashion is built. It’s a team that has long since been built but it’s a way to kind of enrich our development capacity because if anyone in the market we are looking for more facility developers. Your community blockchain is quite large, you might know someone and post it on twitter. If you refer to someone who ends up working in a lab, I’d be happy to share a very good bonus which is like we’ll sell a significant salary. The wearable bonus is also significant so don’t hesitate to reach out to them.
Part 3: TOKENOMICS
5. What is your governance token? How can it be used in the project? What are the main utilities of it?
Alex: The governance token is called seek token and it’s a finance supply token. It works in every block like bitcoin. As a matter of fact, the formula is exactly like bitcoin but instead every 10 minutes, it takes every minute every four blocks on ethereum blockchain. Therefore, all minted seek tokens go to the special contract which splits it into three parts. One part goes for a treasury where DAO controls. We call it a growth fund where basically all our token holders are able to vote what it used for. Process of voting in a development because like turnout governments is a very complicated thing. If you just have a free ability to vote and propose anything, people just propose “hey let’s do farming three times more profitable”. Everyone goes “yeah let’s do it” but you cannot implement it right. Therefore, I’ll be working on how to structure it and to make the proposal more actionable. However, coming back to the economy, it splits on the three parts. One largest part is a protocol incentive known as farming. All our bonuses and parts go to the corporation as a key and this Sig token has a bunch of utilities as well as a part of voting you can claim transaction fees which are accumulated by stable coindex and exchange it for Sig tokens. Last time we distributed 650 dollars and a next week after the announcement launching it on binance smart chain which is substantially cheaper to work with. Thus, it’s a good opportunity for people to try it on a cheaper blockchain in freedom. Basically the plan was what the community proposed, how they see proper collaboration, how nft gets used in index and how sector can get used inside of nft platform. What might be interesting for occasional users is farming for stable coins because as you know stable coins like Swaps does not have a permanent law for defying newcomers what environment loss is when you provide liquidity to Uniswap or Pancakes. For example, if it’s a volatile asset, you might get a situation despite your accumulated fees. Similar to balance between assets, you provided change and might lose money so in stable coin swap you do not have this risk. Stable coins do not have a permanent loss. It works different way I wouldn’t go deep how much works here but what important if you have like some amount of dollars on a blockchain, you can just put in a pool. It’s decentralized and not custodial. While money is held in this pool, this liquidity is used for exchanges. People get rewarded in these governance tokens so it might be very low risk. There is a good opportunity to get some rewards out of that but it’s in your blockchain so it’s not investment advice. Do your own research and read the code to get a best practice in a blockchain
6. How are tokenomics distributed? Can you tell in details in numbers?
Alex: The final supply was exactly like that of bitcoin: 21 million. However, the community decided to upgrade the protocol so 30% of these tokens get burned. Hence, right now the finance supply is limited by 16,816,816. Basically, 21 million minus 30 percent and this is the theoretical maximum of a Sig tokens which can be minted ever. So far, I can actually give a link to the statistics exactly or listeners can get it on the Sigma website. I believe it’s opening right now. About nine million tokens get minted in about ten months because the rate of minting gets lowered like bitcoin. Let’s get halved. You would expect that less new token gets minted and a current market supply token available for retreat is about 5 million tokens. Therefore, half of tokens get minted and the minting speed gets lower. Half of these tokens actually held in different contracts for yield rewards and stuff like that. There are less tokens available for trade and the bridging mechanism is still under development so we are finalizing details. If it appears on a different chain like a binance smart chain or a polygon or whatever 82 solutions like arbitrarily in the future of a finance supply is held true. Hence, it’s limited by a 16.8 million tokens is what you ask or you’re looking for different numbers.
Part 4: SECURITY
7. How safe is your security system? How confident are you in talking about safety? How can you guarantee that for your users?
Alex: In any blockchain project in space, we are acting on the best standards of a DeFi protocol. Basically all codes get peer reviewed inside of the team. After that, it gets tested inside of a test net. Then, we publish a code for the auditors company. We have our editing company who audited the code and on ethereum, we didn’t have any problems during almost a year. More than a billion dollar volume got traded on X-Sigma protocol and about 144 million was the maximum amount of liquidity which was held in a protocol without a single incident. However, it’s very important to understand what number gives you 100% of guarantee. It’s always like a risk reward balance. We did certain actions on our side to maximize the security but nobody can give a hundred percent guarantee. Hence, do your own research and check solidity smart contracts. They all verify in the blockchain before use. It’s a general rule of thumb because even famous protocols like a compound right get exploded. Thus, nobody can guarantee a hundred percent secure but with a record so far a billion dollars within a year not a single incident, this is data which we operate on. Use it at your own risk of course. I think you know safety and security has raised numerous concerns from the blockchain community in specific. Since a lot of projects have been scammed or hacked and you know that really does matter to a lot of people in the market.
Part 5: ROADMAP
8. For the road map of X-Sigma, where have you guys been? How did the business go and what are the next goals that you are most focused on right now?
Alex: From business numbers as I mentioned, there was more than a billion dollar trading volume on the decks last time, they distributed 650,000 dollars in a fee as a farming reward. It was distributed around 26 million dollars worth of Sig tokens as a reward. There are two new projects launched as nft marketplace in collaboration with a maxim magazine and derivative platform which is like the same stealth mode. Hence, I’m not sure I can speak about that as for internal profit numbers. Foundation didn’t cash out a single token yet so Sigma didn’t sell the tokens they held under the long questing investing. They didn’t sell and didn’t solve that. From a business perspective, I’m just not sure what I can share because again I’m a developer. I’m just writing solitary code so I might not know how much money was spent on the marketing and stuff like that. It’s probably a wrong point of reference.
For the goals, this is what was done so far and on the way to do the new version on Binance which is kind of a prerequisite to have a version two on ethereum, a different reward structure. It is due to, Blockchain space involved and I personally like the temple DAO project and like olympus with interesting farming techniques. We will definitely experiment with this direction as well and there are some processes to start doing like governance on a much bigger level than we did before. Our community gets engaged and proposes some things to solve this problem with collaboration between NFT platform and the Sig token because it’s naturally what you would like to expect sector can be used in this nft platform. In addition, these NFT tokens get somehow accounted for in a usage on a next platform. It’s a community who has to decide. We have to engage the community and there is a mechanism for how they can be here, how can they propose without getting into the populism area where we have experimented. Because we try to launch a signal lunch experiment with downloading. People vote here so we have 3x reward but it wasn’t clear how to implement the technique unfortunately. It’s a process which seems very simple but in practice very complicated. To achieve reliable communication, we will communicate with those who are able to own protocol but only responsibly and propose things like either actionable. You can just execute them or at least not out of a place but something that can be done. This is what we’ve done and where Sigma is going.
Part 6: MARKETING STRATEGY
9. How do you plan on attracting more new users to your platform and also to keep the loyal users to stay for the long term?
Alex: It’s kind of like I would answer two questions instead of one. It’s not only about community building but marketing and exciting collaborations with news media, key opinion leaders, and influencers. Communities like yours are great, large, vibrant and active so there are some activities to launch with taking platforms and partnership with different DeFi protocols. You know this is like a defy wars versus partnership so we’re like around and I think the world told me partnership is held right now for a new launch. X-Sigma has just been featured by crypto hustle on youtube which is great and as a community where two full-time community managers who like doing that cover it almost 24 by seven and deliver ideas and suggestions for the community to the core team. Everyone can be here. This is how X-Sigma held a community building challenge.
Part 7: COMMUNITY Q&A
10. What are the ways that X-Sigma generates profits revenue to maintain your project and what is the revenue model? How can you make a win-win benefit to both the investor and your project?
Alex: Again, I cannot speak from an investment point of view because I’m not the appropriate person and no legal advice nor investment advice can give but the economy is well explained in a white paper. The finance supply garner’s token and the protocol itself is basically a DeFi product which generates profit based on a fee. You pay a little fee and if you integrate well enough you have substantial traffic to basically attract liquidity from users and you give users your governance token. You use this liquidity to facilitate trading and this trading generates a fee in a special contract action contract we responded to on ethereum because it was super expensive to use. However, on a binary smart chain, it would be active so you can use this governance token and exchange it for fees back. It’s one utility for governance talking and part of this X-Sigma revenue model. That’s what I can answer
11. I see on the website the dex can provide the cheapest transactions. How can X-Sigma make them so cheap?
Alex: There are ways we can subsidize transactions. Essentially what we give is similar to cashback on a credit card so when you do something in a store, you might get it later after the cashback. Something called one ninja dash so this is what we are announced to do in abundance as well it’s not very expensive anyway. I guess it’s a great way to facilitate further like engagement our community so nothing magical
12. Is X-Sigma going to expand marketing promotion? If so, can you tell us how you are planning on doing so? For example, are you going to a higher market maker?
Alex: I cannot speak about that. I’m not even sure it’s legal to hire them but for our marketing activities which I mentioned before like this youtube management, community building and a partnership. I guess the best way to answer is to facilitate the importance of this DeFi partnership and mutual farming like what Frax successfully did: they partner with Temple Olympus now and all forks of Olympus though. They made x4 or market couples stable coin and it’s have server shows how you can do it successfully and the challenge will just implement and successfully is a partnership with different DeFi projects. I think it’s way more important when to do some market making and basically if projects have attraction projects have a utility and users use it. You will see this by numbers. Everything else, I think that it’s less important but for a marketing point of view as I mentioned there were a lot of activities whereas a whole dedicated team working on that and this AMA with like a great channel Blockchain Army one example of such activity.
13. Are there any special benefits for long-term users of the project mechanism to accumulate points or promote tokens for long-term users?
Alex: If your long-term users probably hold liquidity in the pool so your farming has to be substantial already. There are benefits for early users on a Binance Smart Chain version of a protocol so basically if you provide liquidity, you have a x2 for the first two weeks bonuses. When you first use or like liquidity is low so you have a high part of existing liquidity. Hence, your APR is especially high. Sigma existing communities are people who first know about such an opportunity so if they use it they have more than sufficient rewards as what the board decided.
14. What are some of the major challenges you and your team have encountered in trying to achieve great success on your project?
Alex: There are a lot of challenges to overcome. Marketing is super expensive and notoriously complicated but the economy is super complicated to design and nobody knows whether it’s going to work before or not. All these time constraints you have to implement it and you have to verify so you just don’t have time to do all of those things. Higher talents are an immersively complicated part. I interviewed probably 30 people and there was a very shortage of talent in a device place despite everyone saying “yes, there are so many blockchain developers” and stuff like that. When you interview and realize they didn’t deploy any mainnet contract, they don’t know the basics. You realize who is capable of doing it or are they either outside of a device you have to teach one from scratch or they are already in a space and they are doing something else. If you have to deliver something in a very short time constraint and you have to do it with existing resources which are super limited and spread on a few projects. This is the biggest complication in implementation and time. This is a challenge and I still encourage everyone to watch this video if you know any good developers, please refer. It will be very profitable for you if we end up working with them and also we’re like with a bunch of projects who are looking for talent with very high chances but we will find a place for them.
Up to now, X-Sigma has had outstanding growth with an ever-expanding ecosystem, promising to thrive in the near future.
Disclaimers: Writers’ opinions are solely their own, and do not constitute any financial advice, investment advice, or trading advice. BSC Army strongly recommends that you do your own research, and seek professional advice from a financial advisor where appropriate.