trellixvulnteam / sigh_finance_bla4

A money-market protocol with an AI powered liquidity mining pipeline to cover against losses.

• Testnet (Kovan) : http://sigh.finance/
• Documentation : http://docs.sigh.finance/

Information regarding the upcoming 'space-fantasy' themed SIGH Boosters NFT Sale will be added in the next few days!

What is 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).

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.

What problem is being Addressed by SIGH Finance?

Currently active money-market protocols provide banking on-chain by providing tokenized lending as a service but none tries to capture / off-set the inherent volatility that these individual crypto-assets have. This implies that the users may still face potential loss even after earning interest by depositing assets in these lending protocols if the price of the underlying instrument decreases over time. At SIGH Finance, we aim to minimize this potential loss that the users of the protocol may face by farming the 'Volatility Risk' of the supported instruments. This is accomplished through the parameterization of the yield farming rate of the Instrument SIGH around the total 'Volatility Risk' of the crypto-assets supported by the Lending Protocol, which ultimately dictates the rate at which the circulating supply of SIGH will increase over time. The farmed SIGH instrument will later be used by the Digital Curation Market (DCM) supported by the SIGH Treasury whose goal is to off-set the lending protocol's potential loss curve (simulated off-chain).

Introducing Digital Curation Markets (DIMs)

From the perspective of DLT’s evolution, we are currently in the 2nd stage where the emphasis is on the tokenization of financial assets which can then be traded on blockchain. Assets include securities, physical assets, rights to cash flow, utilities and cryptocurrencies.

The third stage is expected to see the introduction of native Digital Curation Markets (DCMs). Digital Curation Markets refer to crypto-econometric models made possible via curation markets, bonding curves, state channels, A.I driven predictive modelling capabilities and game theory. The data indexing market being introduced by the Graph Protocolwhich uses the Bacor's bonding curve formula along with state channels for off-chain micro-payments may be the first of its kind Digital Curation Market to go live on the Ethereum main-net. Over the past decade, institutional finance has been majorly impacted by developments in Artificial Intelligence, where more than 75% of total trading volume now comes from algo-trading bots. We expect similar developments to take place within the DCMs space, where more and more sophisticated predictive modelling techniques and simulation infrastructure will be developed and used to better model and design these emerging crypto-econometric models. SIGH Finance, via its off-chain Infrastructure will develop the tools and the needed infrastructure to simulate and model these crypto-econometric models to optimize their performance and to cater to the needs of this emerging market sector.

OUR GOAL

SIGH Finance is an initiative under LIFEORDREAM Venture Studio, whose Goal is to fasten the transition of human civilization into a multi-planetary species. With the success of SpaceX in reducing the cost of space travel complemented with more on-going developments, our innate capabilities when it comes to space exploration have undergone rapid progress during the last decade.

We aim to take the spirit of space exploration further by developing techno-conscious life habitable environments in space for humans. Our stated scope includes deploying satellites into space for micro gravity / anti-matter research, establishing Research Labs on Moon and Colonizing Mars.

SIGH Finance is an R&D initiative into Digital Curation Markets (DCMs), which shall later be deployed to support some of the space research projects and training data market for semi-autonomous robots deployed in space accessible via BMI.