In the wild and unexplored territories of decentralized finance, there are no boundaries to the keenness of one's desire to experiment and explore new thresholds that might not have been possible before. DeFi has shown itself and people around the world how innovation could upend the financial system to bring greater equality and fairness for everyone. As we'll learn more in our xSigma review today, we can see that this expedition still has a lot of legs to go.
Backed by a Nasdaq-listed company, xSigma is quite simply a blockchain research and development lab, where some of the brightest minds in the world of decentralized protocols and global networks work together to build new solutions and probe for ideas. Sure, R&D doesn't sound as sexy as those multi-million dollar NFTs or Wall Street's craving for Bitcoins but remember that it's the sort of technology built by companies like xSigma that underpins all that.
Without programmers and engineers working tirelessly in the early hours of the morning on their computers, we might have never been able to enjoy any of the blockchains which we so love and adore today. xSigma isn't done either, having made its own moves towards the DeFi space and into the NFT market sooner or later. But is xSigma joining an already crowded industry a bit too late and with not enough on the table? Well, read along xSigma review to learn more.
What Is xSigma?
xSigma is a subsidiary of ZK International, which is a publicly traded company that has been listed on Nasdaq (NASDAQ: ZKIN). Primarily conceived as a blockchain research and development lab to complement ZK International's own foray into providing blockchain solutions, xSigma is working to solve many key issues around its adoption to this day.
This involves discovering new ways that blockchain technology can be integrated into existing infrastructures today and improving them. It includes learning how to adapt blockchain smarts for finance, logistics, supply-chains, internet-of-things (IoT), and infrastructure.
Quite a fairly new company, xSigma Corporation is currently building its own decentralized finance (DeFi) platform in a bid to bring inclusive and equitable access to financial services for everyone. xSigma wants to create a DeFi platform that isn't just safe and highly secure but also one that is very user-friendly.
Forming a core part of xSigma's breakneck blockchain research and development, their team is spearheaded by former developers and engineers from famed tech institutions. This includes former staffers at Google, Facebook, Ripple, Amazon, and xSigma's DeFi rivals over at 1inch. At its maiden launch into the DeFi sector, xSigma had attracted more than $115-million worth of total value locked (TVL) within its DeFi protocol just 24 hours after launch.
Who Is ZK International?
ZK International Group Co., Ltd. is xSigma Corporation's parent organization – xSigma is a wholly own subsidiary of ZK – and is responsible for much of its financial backing. ZK International is based in China and is a leading manufacturer of high-performance tubing and piping. Mainly, their piping designs are utilized in areas where sophisticated water and gas pipeline systems are used, such as large residential areas, manufacturing zones, oil and gas exploration, irrigation, and so on.
They're an important company in China, as ZK International's piping and tubing solutions form a part of the Chinese government's $850-billion plan to update the country's infrastructure. Thus far, they have already completed more than 2,000 projects. Interestingly, ZK International later started pivoting towards spending more on blockchain technology, interested in developing new supply chain management solutions through smart contracts and distributed ledgers.
What Can You Do on xSigma's DeFi Platform?
xSigma garnered a lot of excitement following the launch of its decentralized finance (DeFi) platform on February 24, 2021. It is now among the top 25 DeFi protocols by volume and user-base growth not long after its public release, as of writing this xSigma review. There are a lot of good merits to back up the hype, however, as xSigma has the distinction of being a DeFi protocol that is backed by a major Nasdaq-listed company that also happens to be regulated by the SEC.
At its core, xSigma is a decentralized stablecoin exchange (DEX) and liquidity mining platform. It is built as a decentralized application (dApp) that has been built and deployed on the Ethereum network.
xSigma's decentralized exchange protocol is based on the tried-and-tested StableSwap algorithm built by Curve Finance in 2019. The exchange itself – just like many other DeFi exchanges – is powered by an automated market maker (AMM) to power it's trading.
This means that, unlike a regular order-book exchange, users on xSigma would pool together their tokens into Liquidity Pools. These users would become Liquidity Providers. Using xSigma's AMM model, the algorithm will decide based on available metrics such as supply and demand to best find a price for a certain asset or trading pair. In essence, instead of having to match your prices with an order book set by someone else, users can trade against the algorithm.
1. Quickly and Seamlessly Exchange Stablecoins
Using an automated market maker has several key benefits compared to a more traditional order-book exchange. It not only ensures that a particular trading pair is priced fairly and prevents significant slippage – which can be a big problem for assets with lower liquidity – to protect the traders, but it also allows users to earn passive rewards. Liquidity Providers can earn a portion of the trading fees from the tokens that they've supplied into a Liquidity Pool.
On xSigma's stablecoin-focused DEX, users can easily and quickly trade from a choice of three different stablecoins – DAI, USDC, USDT – once they've connected their wallet to xSigma, like using the MetaMask browser-based cryptocurrency wallet. So, this gives you a place you swap between stablecoins very quickly, and more importantly, with minimal price slippage to maximize how much you're getting. That is if you're not counting the ridiculous gas fees on Ethereum these days.
2. Earn Passive Rewards by Providing Liquidity
On the flip side, users could also choose to pool together their stablecoins into select liquidity pools to earn rewards. By doing so, those Liquidity Providers can earn a portion of the fees for trades and exchanges happening from the liquidity pools that they've chosen. At the time of writing this xSigma review, there is more than $133.5-million worth of total value locked (TVL) within its liquidity pools – $36.9-million in DAI, $47.3-million in USDC, and $49.3-million in USDT.
In return, they can earn xSigma's native SIG-LP (Liquidity Provider) tokens as an incentive. xSigma's SIG-LP tokens are used to represent your share of the liquidity pool. These SIG-LP tokens can then be staked into two selected pools to then allow Liquidity Providers to farm for SIG cryptocurrency tokens. There are now two staking pools available on xSigma:
- Pool 1 – Natively powered on xSigma, where you can stake SIG-LP cryptocurrencies to earn SIG tokens in return. At the time of writing this xSigma review, you could earn upwards of 46% earnings APY in SIG.
- Pool 2 – Much riskier but also offers higher returns. You can stake your newly-earned SIG tokens into Pool 2, which is a SIG-ETH liquidity pool powered on Uniswap. There, you could earn upwards of 853% earnings APY – as of writing this xSigma review.
What Are xSigma's SIG Cryptocurrency Tokens?
As we explored earlier on our xSigma review, we are now well acquainted with its SIG-LP tokens. It's important to note that this token is merely to represent your share within a select liquidity pool. By mining for liquidity, you can then stake those SIG-LP tokens to earn xSigma's native cryptocurrency, the SIG. Other than earning it through staking into a liquidity pool, you could also acquire SIG by buying trading it on Uniswap.
SIG is the primary currency of the xSigma DeFi platform and is a primary utility token that governs xSigma's decentralized network. Holders of SIG tokens can vote on matters proposed by xSigma's decentralized autonomous organization (DAO).
SIG token holders can earn a portion of trading fees on xSigma's DEX or be able to attain a cashback bonus on monies spent to pay transaction fees on the Ethereum blockchain. Or, you could earn additional farming bonuses just by holding SIG.
What Are the Tokenomics Around xSigma?
As xSigma is built on Ethereum, SIG tokens are minted as an ERC-20 token. At the time of writing this xSigma review, the price of a single SIG is worth $5.35. Currently, there are 2,299,479.66 SIG tokens in circulation, with 16,816,816 SIG in its total supply. Although SIG tokens are being mined at a constant emission rate by design with 50 SIG per block in rewards and halving every 210,000 blocks, the xSigma DAO can theoretically vote to slow it down or speed it up.
At launch – and as observed while writing this xSigma review – the emission rate has been slowed down to just 12.5 SIG mined per block. As part of its distribution model, the supply of SIG tokens is disbursed across three different groups – 60% of SIG will go to Liquidity Providers, including those staking in Pools 1 and 2; 30% channeled to xSigma's research and development fund; the remaining 10% of SIG will be used for marketing purposes as part of xSigma's growth fund.
Apart from that, there is also a burn mechanism built by xSigma for its SIG cryptocurrencies. Users can choose to have their holdings of SIG tokens burnt in return for stablecoins, with the buyout using funds taken from the pool of exchange fees. This works to benefit xSigma in two ways – by raising the market prices and increasing token scarcity. It serves to bring value back to token holders and could make SIG tokens an attractive option for an investment.
What Are xSigma's Future Roadmap Updates?
Although still a very young entrant into the fiercely competitive and fairy unregulated DeFi sector, xSigma has already attracted a strong following and is currently working to fulfill a very ambitious goal of rapidly expanding its userbase for 2021. Outside of xSigma's DeFi endeavors, we've also hinted earlier that xSigma is planning to move into the equally hotly discussed world of non-fungible tokens (NFTs) with its own marketplace.
Powered by multiple blockchains underneath it, such as Ethereum and Polkadot, xSigma will build a new expansive NFT marketplace where users can buy, sell, or trade a variety of different NFTs. In 2021 alone, NFTs have become a $1.3-billion industry. Recently as of this xSigma review, xSigma was able to attract NBA champion Dwight Howard in promoting xSigma's DeFi platform and hopes to gain a similar celebrity following for its NFT ecosystem as well.
The rest of 2021 – mainly within the months of March and April – will see xSigma make continued improvements on their DeFi platform. Additional marketing and technical optimizations are underway, as well as upgrading their DAO to turn xSigma into a truly decentralized network.
xSigma will also explore other options to attract more users, such as listing new tokens, adding new farming pools, integrate Layer2 scaling solutions, adopt more data sources for pricing models, user-interface redesigns, port xSigma's DEX to other blockchains, and a lot more.
xSigma Review – Conclusion
How else could we end our xSigma review other than to be giddy with excitement? Although much of what they offer isn't entirely new in the realm of an already jam-packed – and some might even argue, overly saturated – DeFi space, xSigma brings a lot more ease of life factors that others might not have considered. Especially for outsiders that are not familiar with decentralized finance, getting into a DeFi platform for the first time can be a very daunting process.
The steep learning curves just to make the simplest of transactions, as well as the countless horror stories of flash-loan attacks and exit scams, have given DeFi a pretty sour reputation outside of the enthusiast category. There's a lot more that needs to be done before DeFi can truly become a mainstream tool where the average joe can swap currencies, invest in lucrative liquidity pools, or earn a very profitable passive income. xSigma's DeFi offerings are a preview into such a future.
Their platform isn't just very easy to use and confidence-inspiring for anyone who might want to jump into the DeFi hot-seat for the first time, but it's also assuredly safe with the backing of a publicly listed and SEC-regulated corporation. xSigma might just be the first major platform to make DeFi as easy to use as going to an ATM machine. They still have a lot to prove for themselves, but our xSigma review should have you keeping your fingers very tightly crossed for this one.
Ease of Use
- Their platform is extremely easy to use for a DeFi-focused offering and is especially good for casual users or newcomers that can find most other DeFi platforms confusing or too complex.
- Backing by a large Nasdaq-listed company that is also under supervision and regulation by the SEC, hence giving xSigma more legitimacy for its users.
- Strong roadmap being lined up for 2021, with the support of wholly decentralized community governance.
- Liquidity pools and farming earnings offer more returns on average compared to some other DEX platforms.
- Potential for increased publicity (and maybe a possible synergy) as xSigma is planning to build an NFT marketplace alongside their DeFi platform.
- A very young platform that will be under a lot of heavy competition from other DeFi heavyweights, especially among those offering decentralized exchange (DEX) services.