Sigma Protocol

2/Σ The formula goes deeper than allocation. It produces a property called Dilution Asymmetry, which proves that every DTF deposit rebalances each existing holder's original capital toward target. The exposure shift is mathematically identical to buy low, sell high rebalancing. Nothing is ever sold. Rebalancing toward fixed weights as prices mean revert earns what TradFi calls the Rebalancing Premium. Traditional index funds pay for it with sells, fees, and taxable events. A Sigma DTF collects the premium through allocation alone.

1/Σ Uniswap showed that a simple formula could replace the order book. On-chain markets never looked back. Sigma applies the same insight to ETFs and index funds. A DTF (DEX-Traded Folio) is a tokenized basket of cryptoassets and a tradable index of its constituents. It rebalances itself using a mechanism called Flow Rebalancing. Every deposit is a rebalancing event. The Proportional Rebalancing Formula allocates each inflow toward the assets furthest below target, pulling the DTF continually back to its target weights. No rebalance day. No trading desk. No sell orders.

Introducing Sigma Protocol #SigmaProtocol is a fully decentralized set of persistent, non-upgradable, self-executing smart contracts on the PulseChain blockchain, designed from the ground up for the creation, management, and trading of a novel DeFi concept: the DTF (DEX-Traded Folio). What is a DTF? In its simplest form, a DTF is a tokenized basket of cryptoassets represented by an ERC-20 token. This token can be minted and redeemed directly through the protocol and traded on a decentralized exchange (DEX) such as PulseX or Uniswap, with each token representing a proportional share of the underlying constituent assets held trustlessly in the DTF. Anyone can deploy one, permissionlessly, with no intermediary.