1. Summary
This proposal seeks approval for f(x) to grant its protocol code to Sigma. With this authorization, Sigma aims to develop a tiered fund protocol on BNB Chain based on f(x)’s code. This proposal outlines the scope of authorization, technical adaptation, collaboration model, and future development direction, ensuring that $veFXN holders receive appropriate benefits throughout the partnership.
2. Background
f(x) 2.0 is a decentralized perpetual structured fund trading platform on Ethereum, inheriting key characteristics of f(x)'s volatility tier model. Users can choose to hold leveraged positions with zero funding fees. The protocol is built on LSTs , where transaction fees and LST yields are redistributed to stability pool depositors or veToken holders as platform revenue.
The BNB Chain ecosystem has significantly evolved since the DeFi summer. Unlike before, users can now stake wrapped BNB on-chain and receive benefits directly from Binance’s platform. (See Binance announcement: link )
Sigma plans to leverage f(x) 2.0 and collaborate with Lista DAO, Tranchess, Venus, and Binance Wallet to:
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Utilize stablecoins as the stability pool to help yield-seeking users earn Binance Launchpool and Megadrop rewards.
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Enable leveraged users to take long BNB positions with minimal transaction costs and zero funding fees.
3. Authorization Request
We request f(x) to authorize Sigma to use, adapt, and deploy the f(x) protocol on BNB Chain under the following terms:
- Scope of Authorization
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Grant Sigma the right to use, modify, and deploy the f(x) protocol code on BNB Chain.
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Allow Sigma to expand and develop the protocol to suit BNB Chain’s ecosystem needs.
- Technical Adaptation Plan
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The code will be adapted for BNB Chain, supporting BEP-20 tokens and integrating with LST assets.
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The transaction mechanism will be adjusted to ensure compatibility with existing liquidity pools (e.g., Venus, PancakeSwap) on BNB Chain.
- Code Maintenance & Responsibility
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Sigma will be responsible for the technical maintenance and security of the adapted code, with f(x) bearing no liability for any technical or contractual risks.
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If Sigma expands the code, it must attribute credit to f(x) as the original protocol.
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f(x) will continue to maintain the authorized code and act as a technical advisor for Sigma.
4. Collaboration Framework
We envision a long-term strategic partnership between f(x) and Sigma, structured as follows:
- Token Incentives & Governance Model
- To reward the f(x) community and ensure sustainable cooperation, Sigma proposes:
Allocating 20% of the total token supply to veFXN holders, with a linear vesting schedule.
A two-year linear vesting schedule with a six-month cliff, meaning that after the cliff period ends, the tokens vested during the first six months will be claimable.
- Allowing veSIGMA holders to participate in governance, influencing the development on BNB Chain.
- Marketing & Brand Collaboration
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Sigma will position f(x) as a core technical partner in all BNB Chain promotions.
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f(x)-related content will be included in BNB Chain ecosystem events and incentive programs to enhance brand influence.
- Deployment & Community Engagement
- f(x) will assist Sigma in adaptation, deployment, and community engagement during the cold-start phase of the protocol.
5. Future Development
This collaboration marks the first deep integration between Sigma and f(x). Moving forward, we aim to:
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Explore additional LST and incorporate them into Sigma’s BNB Chain ecosystem.
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Continuously optimize the tiered fund mechanism, allowing f(x)’s volatility tier model to be applicable across multiple ecosystems.
6. Required Code & Resources
- Smart Contract Repository: GitHub - AladdinDAO/fx-protocol-contracts