ZK International Group Co., Ltd., a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, is pleased to announce that xSigma Corporation, a subsidiary of the Company, that is a blockchain R&D lab, is pleased to announce that it has published the whitepaper for its DeFi protocol which reveals the key technical details of its future product.
After Bitcoin reached its all-time-high of $40,000, the DeFi industry now has crypto worth over $23 billion locked in major protocols, according to the DeFi Pulse website. This is over 100% growth since November, according to the DeFi Pulse. xSigma is now targeting the DeFi space with two projects. The ultimate objective of xSigma is to build an ecosystem of products for finance and blockchain.
Mr. Jiancong Huang, Chairman and Chief Executive Officer of ZK International, stated, “We are pleased to announce that xSigma is expanding and adding one more project to its ecosystem. The new project may generate a lot of value for users worldwide and enable newcomers to join the DeFi space.”
Centralized exchanges have been the backbone of the cryptocurrency market for years. They offer fast settlement, high trading volume, and continually improving liquidity. However, there’s a parallel world being built in the form of trustless protocols.
DeFi, which stands for Decentralized Finance, aims to build a system which can work openly, securely, and in a modular manner, so that anyone can join it, use it, contribute to it and upgrade it. The main idea is to recreate financial services and tools that are entirely on blockchain, eliminating the need for banks or other third parties as intermediaries. This makes it fast, inexpensive and available to everyone. Further, the open-source nature of DeFi makes it transparent and trustless.
The xSigma DeFi protocol whitepaper reveals details such as tokenomics, liquidity mining rewards, governance mechanisms, the token utility and distribution as they are foreseen in the smart contract that xSigma plans to publish to the Ethereum blockchain. The launch of the protocol is scheduled for the coming weeks. The project has collected thousands of subscriptions in its waitlist, and it has secured commitments from individual and institutional liquidity providers.
Basically, xSigma has two main elements: Swap and Staking (Farming). Users that participate in staking may receive a certain reward.
What is the xSigma Protocol?
xSigma is a decentralized stablecoin exchange with a clean UI, exchange subsidy and liquidity mining program. Working according to the rules summarized in the whitepaper and that will be transparently published to the Ethereum blockchain, we expect xSigma to be a stable and attractive option for liquidity providers that are looking for transparency and stability in the DeFi market.
xSigma is built on top of the Curve/Swerve swap mechanism1 with a view to improve them. Traditionally, token swaps require buyers and sellers to create liquidity; xSigma’s DeFi protocol creates markets automatically. Unlike most exchanges that charge fees, xSigma was designed with a very low fee structure.
Traders can exchange Ethereum stablecoins by engaging with the xSigma protocol without having to trust anyone with their digital assets. Anyone can contribute their cryptocurrencies to the liquidity pool and potentially collect a fee. This is done by a public and transparent equation published to the Ethereum blockchain that automatically determines and balances the relative value based on actual demand.
How xSigma’s Protocol Works?
The xSigma protocol is an automatic liquidity marketplace, so there is no order book or central party required for the transaction, and it allows users to act as a one-stop-shop for any type of exchange, be it a token exchange or a trading platform.
To enable trading without an order book, xSigma has developed for its protocol a model called the liquidity pool, which is created by liquidity providers. Anyone with an Ethereum address can contribute to the liquidity of exchange and make money from it. It allows users to exchange stablecoins, without intermediaries. xSigma is not a hosted or other form of virtual currency wallet, users who engage with the protocol remain in exclusive control of their digital assets.
There is one important thing that users should keep in mind: they can seamlessly switch between ERC-20 stablecoins without the need for an order book. As the xSigma Protocol is decentralized, the listing process is fully decentralized and transparent; there is no liquidity pool available for traders. Unlike other DeFi platforms, xSigma is also implementing measures to block users of its front-end portal from sanction jurisdictions; xSigma believes that long-term DeFi developers must integrate compliance mechanisms into their platforms.
So, in summary, the xSigma protocol is a more complete version of other DeFi platforms, with the transaction fee earnings of 0.24% of trading for liquidity providers. Further details on the xSigma protocol are as follows: