Advanced DeFi Derivatives Protocol Suite on Solana
Sigma brings institutional-grade volatility and exotic derivative instruments to Solana, enabling advanced hedging, speculation, and structured product creation — at 60% lower cost than traditional alternatives.
| Feature | Description |
|---|---|
| Volatility Index (SVI) | On-chain volatility index comparable to Volmex SVIV |
| CEX Funding Rates | Aggregated funding rates from Binance, Bybit, OKX, and more |
| Secondary Market | Trade positions before expiry via tokenized position market |
| Unified Oracle | Shared infrastructure for price, variance, and funding data |
| Private Intents | Encrypted order submission with cross-chain collateral support |
| Protocol | Description | Status |
|---|---|---|
| VolSwap | Variance swaps for volatility trading | ✅ Implemented |
| FundingSwap | Funding rate receiver/payer derivatives | ✅ Implemented |
| ExoticVault | Asian & barrier options | ✅ Implemented |
| Shared Oracle | Unified price feeds, TWAP, variance, volatility index | ✅ Implemented |
| Private Intents | Encrypted order submission with solver execution | ✅ Implemented |
Sigma Protocol Suite
┌──────────────────────────────────────────────────────────────────────────┐
│ │
│ ┌────────────────────────────────────────────────────────────────────┐ │
│ │ Private Intents Layer │ │
│ │ ┌──────────────┐ ┌──────────────┐ ┌──────────────────────┐ │ │
│ │ │ Encrypted │───▶│ Solver │───▶│ Cross-Chain Bridge │ │ │
│ │ │ Orders │ │ Service │ │ (Wormhole + CCTP) │ │ │
│ │ └──────────────┘ └──────────────┘ └──────────────────────┘ │ │
│ └────────────────────────────────┬───────────────────────────────────┘ │
│ │ │
│ ┌───────────┐ ┌─────────────┐ │ ┌─────────────┐ │
│ │ VolSwap │ │ FundingSwap │ │ │ ExoticVault │ │
│ │ │ │ │ │ │ │ │
│ │ Variance │ │ Receiver/ │◀─┴─▶│ Asian & │ │
│ │ Swaps │ │ Payer │ │ Barrier │ │
│ └─────┬─────┘ └──────┬──────┘ └──────┬──────┘ │
│ │ │ │ │
│ └────────────────┼───────────────────┘ │
│ │ │
│ ┌───────────────┼───────────────┐ │
│ │ │ │ │
│ ┌──────▼──────┐ ┌──────▼──────┐ ┌──────▼──────┐ │
│ │ Volatility │ │ CEX Funding │ │ Secondary │ │
│ │ Index (SVI) │ │ Feed │ │ Market │ │
│ └──────┬──────┘ └──────┬──────┘ └──────┬──────┘ │
│ │ │ │ │
│ └───────────────┼───────────────┘ │
│ │ │
│ ┌────────▼────────┐ │
│ │ Shared Oracle │ │
│ │ (Price, TWAP, │ │
│ │ Variance) │ │
│ └────────┬────────┘ │
│ │ │
│ ┌───────────────┼───────────────┐ │
│ │ │ │ │
│ ┌──▼──┐ ┌────▼────┐ ┌────▼────┐ │
│ │Pyth │ │Switchboard│ │ Drift │ │
│ └─────┘ └──────────┘ └─────────┘ │
│ │
└──────────────────────────────────────────────────────────────────────────┘
Trade realized volatility through variance swaps — the purest, most capital-efficient way to trade volatility.
- Long Variance: Profit when realized variance exceeds strike (2-4% cost vs 8-12% for straddles)
- Short Variance: Profit when realized variance stays below strike
- Payoff:
Notional × (RealizedVariance - StrikeVariance) / StrikeVariance
Trade funding rate exposure with support for both on-chain perps and CEX funding rates.
- Receive Fixed: Pay floating funding rate, receive fixed rate
- Pay Fixed: Receive floating funding rate, pay fixed rate
- CEX Integration: Aggregated rates from Binance, Bybit, OKX, Deribit, Bitget, Kraken
- Use Cases: Funding rate speculation, basis trading, hedging perp positions
Structured exotic options with path-dependent payoffs — 40-60% cheaper than vanilla options.
- Asian Options: Settlement based on TWAP (manipulation resistant)
- Barrier Options: Knock-in/knock-out at price barriers
- Use Cases: Cheap crash protection, hedging, structured products
On-chain volatility index comparable to Volmex SVIV.
- Real-time Index: Tracks realized and implied volatility
- Regime Detection: VeryLow, Low, Normal, High, Extreme classifications
- Mean Reversion Signals: Identifies when volatility is elevated or depressed
- Historical Data: 7-day and 30-day averages, percentile rankings
Trade positions before expiry through tokenized position market.
- Position Tokenization: Convert any Sigma position to a tradeable token
- Marketplace: List, buy, and sell positions with price discovery
- Mark-to-Market: Real-time position valuation
- Early Exit: Exit positions without waiting for settlement
Submit encrypted derivative orders with privacy-preserving execution.
- Encrypted Orders: NaCl box encryption (X25519-XSalsa20-Poly1305)
- Solver Execution: Trusted solver decrypts and executes orders via CPI
- Cross-Chain Collateral: Bridge collateral from Ethereum/Arbitrum via Wormhole
- Native USDC: Circle CCTP support for native USDC bridging
- Intent Types: Supports VolSwap, FundingSwap, and ExoticVault orders
sigma/
├── programs/
│ ├── shared-oracle/ # Unified oracle infrastructure
│ │ ├── Price feeds, TWAP, variance tracking
│ │ ├── Volatility Index (SVI)
│ │ ├── CEX Funding Rate aggregation
│ │ └── Secondary Market infrastructure
│ ├── volswap/ # Variance swap protocol
│ ├── funding-swap/ # Funding rate derivatives
│ ├── exotic-vault/ # Asian & barrier options
│ └── private-intents/ # Encrypted order submission
├── packages/
│ └── private-intents/ # Private intents TypeScript library
│ ├── Encryption utilities (NaCl box)
│ ├── Intent schemas (variance, funding, exotic)
│ ├── Cross-chain bridge clients
│ └── PrivateIntentClient
├── solver/ # Solver service for intent execution
│ ├── API endpoints
│ ├── Intent polling and decryption
│ └── CPI executors for each protocol
├── sdk/ # TypeScript SDK (@sigma-protocol/sdk)
├── tests/ # Integration tests
├── frontend/ # Next.js trading dashboard
├── landing/ # Landing page
├── pitch-deck/ # Investor pitch deck
└── docs/ # Documentation
├── Protocol mechanics
├── Use cases
├── Marketing plan
├── Liquidity strategy
└── Competitive analysis
| Program | Address |
|---|---|
| Shared Oracle | 81SjyEmtwJUeqU9ZEfc7sm9evVpDuGwRSLrFQeCF4j5o |
| VolSwap | FGjwkx9XxzJZvgybXTtDjsWJgCuhXwNJTthFwhfj8nPS |
| FundingSwap | GTERstKRN2YBVNwx6UePFhbn7BAfYeJkZmdX7gXqRjjx |
| ExoticVault | 6zryMfmTZPcneCvU5Bgs6amu5vg5jK2uQRCSkkNfKf3P |
| Private Intents | AaZSJxm7jkqb9Tjo38wU66w6owuyrDtqw3ksnyHMN9ow |
- Rust (1.70+)
- Solana CLI (1.18+)
- Anchor (0.30+)
- Node.js (18+)
# Clone the repository
git clone https://github.com/psyto/sigma.git
cd sigma
# Install dependencies
yarn install
# Build programs
anchor build
# Build SDK
cd sdk && yarn build && cd ..
# Build private-intents package
cd packages/private-intents && yarn build && cd ../..
# Install frontend dependencies
cd frontend && yarn install && cd ..# Configure Solana CLI for localnet
solana config set --url localhost
# Start local validator (in a separate terminal)
solana-test-validator
# Deploy all programs to localnet
anchor deploy
# Run integration tests
anchor test
# Start frontend (connects to localnet by default)
cd frontend && yarn dev
# Start solver service (optional, for private intents)
cd solver && yarn devThe frontend will be available at http://localhost:3000 and will automatically connect to the local validator.
The solver service runs on http://localhost:3001 and provides endpoints for encryption key registration and intent monitoring.
# Install the SDK in your project
npm install @sigma-protocol/sdk
# Or link locally for development
cd sdk && npm link
cd ../your-project && npm link @sigma-protocol/sdkSee sdk/README.md for detailed SDK documentation.
- Overview - What Sigma is and why it matters
- VolSwap - Variance swaps explained
- FundingSwap - Funding rate derivatives
- ExoticVault - Asian & barrier options
- Liquidity Provision - LP economics
- Use Cases - Real-world trading scenarios
- Advanced Features - SVI, CEX Funding, Secondary Market
- Private Intents - Encrypted orders and cross-chain collateral
- Marketing Plan - Go-to-market strategy
- Liquidity Strategy - LP bootstrapping
- Competitive Analysis - Market positioning
ETF decision coming, expect high volatility:
├── Open long variance position in VolSwap
├── Strike: 35%, Cost: 3% premium
└── If realized variance = 55%, profit = 57% on notional
Holding $100K long perp, funding is unpredictable:
├── Open FundingSwap to receive fixed rate
├── Lock in 0.04% per 8h funding cost
└── Predictable costs regardless of market conditions
Want downside protection without expensive puts:
├── Buy knock-in put (1.8% vs 5.5% vanilla)
├── Only activates on significant crash (>15% drop)
└── Same protection, 67% savings on premium
Need to exit position before expiry:
├── Tokenize position via Secondary Market
├── List at desired price
└── Buyer takes over position, you exit early
Large variance swap order, want to avoid front-running:
├── Encrypt order parameters with solver's public key
├── Submit encrypted intent with collateral
├── Solver decrypts and executes via CPI
└── Order executed privately, no MEV extraction
| Capability | Traditional | Sigma |
|---|---|---|
| Volatility Trading | Straddles (8-12%) | Variance Swaps (2-4%) |
| Funding Hedge | Not available | FundingSwap |
| Crash Protection | Puts (5-6%) | Barrier Puts (1.5-2%) |
| Position Liquidity | Wait for expiry | Secondary Market |
| Volatility Index | Volmex (EVM only) | SVI (Solana native) |
| CEX Funding Data | Manual tracking | Aggregated feed |
- Monorepo setup
- Program scaffolding
- Shared Oracle implementation
- VolSwap implementation
- FundingSwap implementation
- ExoticVault implementation
- Volatility Index (SVI)
- CEX Funding Rate integration
- Secondary Market infrastructure
- Private Intents protocol
- Cross-chain collateral (Wormhole + CCTP)
- Solver service
- Frontend dashboard
- Landing page
- Documentation
- TypeScript SDK
- Integration tests
- Localnet deployment
- Security audit
- Devnet deployment
- Mainnet beta
| User Type | Primary Use |
|---|---|
| Event Traders | VolSwap for volatility around news events |
| Basis Traders | FundingSwap to lock in funding yield |
| Portfolio Hedgers | ExoticVault for cheap crash protection |
| Yield Farmers | LP pools for 15-40% APY |
| Perp Traders | FundingSwap to hedge funding costs |
| Market Makers | VolSwap to hedge gamma exposure |
Contributions are welcome. Please open an issue to discuss significant changes before submitting a PR.
This software is in active development and has not been audited. Use at your own risk.
If you discover a security vulnerability, please report it privately.