Abstract

The Foundation of a New Financial Primitive

Stablecoins and leverage have long served as core pillars of the crypto ecosystem.

Yet, the most capital-efficient models to date have relied on trust assumptions that run counter to the ethos of decentralized finance.

That era is ending.

Sigma Money introduces a new framework—built on decentralization, interest-free, and robust risk controls—that redefines how stable value can be created and used on-chain.

Stablecoins

Today’s stablecoin landscape is dominated by centralized custodians, overcollateralized systems with poor capital efficiency, or designs prone to depegging.

What users, DAOs, and institutions truly need is a scalable, trustless stablecoin that maintains strong price stability while unlocking sustainable, on-chain yield opportunities.

Leverage and Capital Efficiency

While leverage can be a powerful tool, traditional implementations often expose users to sharp liquidations or unpredictable funding costs.

In addition, most decentralized derivatives and lending protocols either rely on centralized infrastructure or offer low leverage and inefficient capital use.

Sigma Money takes a different path: enabling stable, passive asset management without exposing users to unnecessary complexity or systemic risks.

Origins and Vision

The inspiration for Sigma Money originated from the innovative design of f(x) Protocol. Its architecture introduced a novel approach to capital efficiency and risk-managed leverage within a fully decentralized framework.

We were deeply impressed by f(x) Protocol’s creativity and effectiveness. Rather than reinventing the wheel, we aim to build on its foundation—adapting and extending its core strengths to new ecosystems.

Specifically, Sigma Money is designed for the Binance Smart Chain (BSC) at the current stage, where asset behaviors, liquidity structures, and user patterns differ significantly from those on Ethereum. To address these nuances, we’ve refined the model to support BSC-native assets and ensure optimal stability, scalability, and usability in this environment.

In doing so, we seek to preserve the spirit of the original design while enhancing its applicability across a broader and more diverse range of on-chain assets.