Sigma Money CAKE.PAD Discussion Thread

Governance
1

Main
Main1920×1080 106 KB

tl;dr

  • We welcome Sigma Money, a DeFi protocol where you can trade assets like BNB with up to 7x leverage and no funding fees, to PancakeSwap’s CAKE.PAD on BNB Chain
  • All users with $CAKE in their wallets are eligible for the CAKE.PAD.
  • Oversubscription tax policy will be applied for the CAKE.PAD event. (Read more)

What is Sigma Money?

Sigma Money lets users trade assets like BNB with up to 7x leverage, without paying funding fees. It uses a partial liquidation system to reduce the chances of a full liquidation on users’ positions.

The platform is powered by bnbUSD, a stablecoin that can only be minted using BNB-related assets (e.g. BNB and slisBNB) as collateral.

bnbUSD maintains its peg through several mechanisms:

  • A Stability Pool that performs automatic arbitrage in the bnbUSD/USDT liquidity pool.
  • The protocol’s ability to pause or limit operations during depeg events.
  • Stabilization fees applied to leveraged long and short positions that exceed certain thresholds.
  • A guaranteed right of redemption, allowing holders to exchange every bnbUSD acquired from secondary markets for $1 worth of collateral.

All of this operates under the Sigma invariant, which ensures the combined value of all bnbUSD, long, and short positions always matches the total value of the protocol’s collateral reserves.

What is $SIGMA?

$SIGMA is the liquid protocol token of Sigma Money; it is transferable and tradable.

Users can lock $SIGMA for $xSIGMA at a 1:1 ratio. $xSIGMA is a soul-bound token (SBT), hence it is non-transferable and non-tradable.

There are two ways to convert $xSIGMA back to $SIGMA. In the first method, users can do an immediate conversion, but will only be able to convert $xSIGMA to $SIGMA at a 1:0.5 ratio (i.e. accept a 50% penalty).

In the second method, users can go through an unstaking period of 14 days (cancellable), and thereafter wait 6 months to redeem $SIGMA at a 1:1 ratio. Users can also choose to receive their $SIGMA tokens at any time during the 6 month period, but will incur a penalty on the token amount received ranging from 49% to 0%. The penalty incurred scales down linearly as the wait time increases. Users will also not receive any benefits or governance power once the unstaking period has started.

$xSIGMA is the protocol’s governance token that captures the majority of the value. It manages emissions through gauge voting, aligns holders with the protocol’s long-term vision, dictates strategic direction, and enjoys revenue sharing from the protocol:

  • Gauge Emission:

    • Holders decide how $SIGMA emissions are distributed across various gauges (liquidity pools, Stability Pools, etc.) in each epoch (weekly). $SIGMA emissions will eventually make up 40% of $SIGMA’s total supply.

    • This voting power can attract incentives from other protocols who wish to influence the voting decision, similar to the Curve and Convex model.

  • Loyalty Rewards:

    • Early exits from $xSIGMA positions incur penalties that are redistributed to loyal $xSIGMA holders, reinforcing long-term participation.

  • Strategic Governance:

    • Holders can vote on key protocol decisions, such as emissions, new assets, partnerships, and ecosystem growth.

  • Revenue Sharing / Token Buybacks:

    • 80% of the yield generated by collateral or idle assets held by the protocol will be used to buy back $SIGMA tokens and redistributed to $xSIGMA holders via the Vote Market

    • All other fees, including 20% of the yield generated by collateral or idle assets held by the protocol, will be directed to the Sigma Money Reserve

    • Once the Sigma Money Reserve reaches a certain threshold, any surplus will be used to buy back $SIGMA tokens

SIGMA Token Distribution

image
image2088×364 63.8 KB

image
image1062×292 23.1 KB

If any of the terms are unclear, please leave a comment in the forum post.

CAKE.PAD Event Details

  • Chain: BNB Chain
  • Start date: 21 Oct 2025 0200 UTC
  • End date: 21 Oct 2025 0700 UTC
  • Amount to be raised: USD $150,000 in CAKE tokens
  • CAKE.PAD tokens: 15,000,000 SIGMA (1.5% of SIGMA’s max supply)
  • Price per token: 1 SIGMA = $0.01 USD
  • Fully Diluted Valuation: $10,000,000
  • Token vesting schedule: 100% unlock at TGE

All CAKE raised from the SIGMA token CAKE.PAD event will be given to the CAKE.PAD project

Method: CAKE.PAD event will be conducted via the Overflow method

What is the “Overflow” method?

In the “Overflow” method, users can commit as much funds as they want to the CAKE.PAD event, and their final allocation will be based on the proportion of their committed funds versus the total pool of committed funds when the CAKE.PAD event ends. Users will get back any leftover funds when they claim their tokens after the CAKE.PAD event, minus any fees.

To participate in the CAKE.PAD:

  • Before the CAKE.PAD event:
    • Buy / Prepare CAKE tokens
  • During the CAKE.PAD event
  • After the CAKE.PAD event
    • When the event is complete, claim your CAKE.PAD partner tokens.
    • In the case of an overflow, claim your unused CAKE tokens (minus tiered tax).
    • If the CAKE.PAD event has token vesting, return throughout the vesting period to claim released tokens until the end of the vesting schedule.

Participation Fee

In the CAKE.PAD event, a Tiered Tax applies as part of the participation fee.

This Tiered Tax is triggered when the CAKE.PAD is oversubscribed. The fee is deducted only from participants’ excess committed funds and will be 100% burned after the CAKE.PAD event. As a result, generally the higher the oversubscription, the more CAKE tokens will be burned through the participation fee.

Please make sure to do your own calculations and only commit an amount you’re comfortable with. If a fee tier is applied, it will increase the cost basis when receiving the project tokens.

Oversubscription Rate Fee Tier
>= 0x 1.00%
>= 50x 0.80%
>= 100x 0.60%
>= 150x 0.50%
>= 200x 0.40%
>= 250x 0.30%
>= 300x 0.25%
>= 400x 0.2%
>= 500x 0.15%
>= 650x 0.12%
>= 800x 0.1%
>= 1000x 0.080%
>= 1250x 0.065%
>= 1500x 0.055%
>= 1800x 0.045%
>= 2200x 0.037%
>= 2700x 0.030%
>= 3300x 0.025%
>= 4000x 0.020%
>= 5000x 0.017%

To learn more, visit the project’s official channels:

:warning::warning::warning: BEWARE OF ONCHAIN DANGER :warning::warning::warning:

SIGMA Official Token Contract Address: 0x85375D3e9c4a39350f1140280a8b0De6890A40e7

Any other SIGMA token will be a scam and will result in financial loss. Always verify the token address before buying tokens.

Disclaimer - All projects are subject to high market risk and volatility. Please do your own research and interact with caution. PancakeSwap will not be held responsible for any losses.