Sigmadex is excited to announce that we are integrating the Chainlink Implied Volatility (IV) Data Feeds and Chainlink Keepers to help create balanced, responsive markets that dynamically update according to external conditions and mitigate impermanent loss for users. The Chainlink IV Data Feeds will provide integral statistics for Sigmadex’s proprietary DAMM and the Sigma Risk Index (SRI) computation algorithms, while Chainlink Keepers will optimize the market algorithm by automatically adjusting parameters according to market conditions and forecasted price volatility.
Chainlink IV Data Feeds and Price Feeds will enable Sigmadex to assess the current state of the derivatives market from multiple independent sources, creating a more robust algorithm backed by high-quality data. Moreover, Chainlink Keepers will optimize the parameter dynamics in real-time by triggering market contract state changes according to IV data, helping ensure the algorithm can quickly respond to market conditions.
Sigmadex aims to provide users with the best DeFi experience as we continue to develop the protocol in anticipation of a multi-phased launch. Utilizing industry-leader Chainlink as a trusted source of secure and reliable real-world prices and volatility on the Sigmadex platform will serve as valuable integration for the ecosystem.“Integrating a reliable Implied Volatility data feed into Sigmadex's AMM architecture will enable liquidity concentration to be determined algorithmically. Chainlink's history in building high-quality, tamper-proof data sources is second to none and provides the confidence we require to continue building the foundation of Sigmadex”. - Roland Haggins, Sigmadex Co-Founder Prototyping and Testing
Our team will be prototyping this new implementation on the Rinkeby test network while preparing its integration into our SRI and DAMM algorithms for use on Sigmadex. This prototyping will enable us to bring key co...