Sigma Money is a decentralized finance (DeFi) protocol operating on the BNB Chain that describes itself as a "Yield Engine Powered By Volatility Tranching." ^[1] The project's core function is to separate crypto assets into two distinct synthetic tranches: a stable, yield-bearing component and a volatile, leveraged component. This structure is designed to cater to different user risk appetites by providing stability for one group of participants while offering leveraged exposure with zero claimed funding rates to another. The protocol generates what it terms "real yield" to power its system. ^[1]​

Overview

Sigma Money was established with the stated mission of "Empowering with unstoppable DeFi composability!" ^[2] The protocol's central innovation is its volatility tranching mechanism, which takes a single asset and splits its value and risk profile into two new, distinct assets. The relationship between these assets is maintained by the equation Total Reserve Value = Stables + Leveraged Position. This allows users to choose between holding a stablecoin-like asset that accrues yield or a leveraged position that amplifies exposure to the underlying asset's price movements. ^[1]​

The project's ecosystem is designed around its native stable-yield asset, bnbUSD, and its leveraged counterparts, termed xPositions. The yield distributed within the protocol is sourced externally from the Binance Launchpool and is funneled into Sigma Money through an integration with the ListDAO protocol. Governance is managed through a token, xSIGMA, and is based on a model that incentivizes long-term participation. ^{[1] [2]}​

History and Development

The public-facing origins of Sigma Money can be traced to March 2025, when its official account on the social media platform X (formerly Twitter) was created. ^[2]​

A significant milestone occurred on July 25, 2025, when the project was announced as one of 15 projects selected for the MVB Season 10 cohort. This accelerator program, co-hosted by BNB Chain, yzifabs, and CoinMarketCap, involved a selection from over 500 applicants. Following its inclusion in the program, the protocol saw growth in its user base and asset deposits. By August 15, 2025, Sigma Money reached a Total Value Locked (TVL) of $5,000,000. ^[2]​

In late 2025, Sigma Money engaged in several key activities to expand its user base and launch its native tokens. On October 20, 2025, the project debuted on Binance Wallet's "Binance Alpha" platform, an event that included a planned token airdrop. That same day, co-founder Chris participated in an X Spaces AMA (Ask Me Anything) session to discuss topics related to Real-World Assets (RWAs) and DeFi. ^[2]​

The airdrop for the protocol's native token, $SIGMA, went live on October 21, 2025. Eligible "Binance Alpha Traders" were able to claim their tokens using points they had accumulated on the Binance Alpha platform. Shortly after, on November 12, 2025, the protocol launched its governance and staking token, $xSIGMA, along with the associated staking functionality on the Sigma.Money platform. ^[2]​

Core Technology: Volatility Tranching

Volatility tranching is the foundational technology of the Sigma Money protocol. It involves the programmatic division of a single underlying crypto asset into two new synthetic assets with opposing risk and reward characteristics. This process is designed to isolate and redirect price volatility. ^[1]​

Zero Volatility Tranche (Stable Assets)

This tranche is designed to function as a stablecoin by relinquishing its price volatility to the corresponding leveraged tranche. The protocol's primary asset in this category is bnbUSD. In exchange for forgoing potential price appreciation (and depreciation), holders of this asset receive an amplified yield. This yield is generated by absorbing the share of yield that is forfeited by users holding the leveraged positions (xPositions). This mechanism aims to create a stable, yield-bearing instrument for users seeking lower-risk returns. ^[1]​

Amplified Volatility Tranche (Leveraged Positions)

Known as xPositions, this tranche serves as the counterpart to the stable tranche. It absorbs the price volatility transferred from the stablecoin component, providing users with leveraged exposure to the underlying asset's price movements. A key feature highlighted by the project is that this leveraged exposure is offered with what are claimed to be "zero funding rates," a common cost associated with traditional perpetual futures contracts. This tranche is tailored for users with a higher risk tolerance who wish to speculate on the price direction of the underlying asset. ^[1]​

Yield Generation

The protocol's yield is described as "real yield," indicating it is sourced from external, productive activities rather than solely from token emissions. The specified source of this yield is the Binance Launchpool. The yield is captured and redirected into the Sigma Money protocol via an integration with ListDAO, another protocol on the BNB Chain. This external yield is then distributed to the participants within the Sigma Money ecosystem, primarily to the holders of the stable tranche assets. ^[1]​

Protocol Ecosystem and Features

The Sigma Money platform is composed of several integrated components, tokens, and reward systems designed to facilitate its core functions of stability and leveraged trading. ^[1]​

Tokens and Assets

• $SIGMA: The native token of the Sigma Money protocol. Its initial distribution was conducted via an airdrop in October 2025 to eligible traders on the Binance Alpha platform, a collaboration with Binance Wallet. ^{[3] [4]}
• xSIGMAby convertingxSIGMA` allows holders to earn rewards and participate in protocol governance. ^[2]
• $bnbUSD: The protocol's principal stable-yield asset. Users can mint bnbUSD and stake it within the protocol to earn yield. It is designed to maintain a stable value by offloading its volatility. ^{[1] [2]}
• σ-Points (Sigma-Points): A points-based reward system created to incentivize early adoption. Users earned Sigma-Points by performing actions such as minting and staking $bnbUSD. The stated purpose of these points is to "secure protocol ownership rights" and "multiply future rewards," suggesting a link to future governance power or token allocations. ^[2]

Key Features

• Stability Pool: A dedicated liquidity pool designed to uphold the price peg of the bnbUSD stable-yield asset. This pool also serves to deepen the on-chain liquidity for the asset, contributing to its stability. ^[1]

• Liquidation Brake: A protective mechanism intended to shield users of leveraged xPositions from the risk of sudden liquidations caused by extreme and rapid price shocks in the market. ^[1]

• Platform Interface: The user interface includes several sections:

  • Trade: An interface for trading the protocol's assets.
  • Earn: The section dedicated to yield-generating activities like staking.
  • Mint: Functionality to create the protocol's native assets such as bnbUSD.
  • Dashboard: A personalized area for users to monitor their positions and earnings.
  • Leaderboard: A ranking system for users, likely based on activity or points accumulated.
  • Stats: A page displaying aggregate statistics for the entire protocol. ^[1]

Governance

Sigma Money's governance is structured around a model described as "x(3,3) governance with built-in incentives." This framework references the game theory concept originated by OlympusDAO, which uses staking and bonding mechanisms to encourage participants to lock up their tokens for the long term, thereby aligning user incentives with the protocol's long-term health. ^[1]​

The xSIGMA token is the instrument for this governance system. Holders of xSIGMA are granted the ability to vote on protocol decisions and participate in directing incentives toward various activities within the ecosystem. The ultimate goal, as outlined in the project's roadmap, is to transition full ownership and control of the protocol to the community of xSIGMA holders. ^[1]​

Security

The project's official website claims that its "Codebase [is] 100% Audited." Logos for two blockchain security firms, Supra and SlowMist, are displayed on the site, indicating they have performed security audits on the protocol's smart contracts. ^[1]​

Partnerships and Integrations

Sigma Money has established several key partnerships within the BNB Chain ecosystem to support its operations and growth.

• BNB Chain: The protocol is built on the BNB Chain and was a participant in its flagship MVB Season 10 accelerator program. ^[2]
• Binance: The project has a multi-faceted relationship with the Binance ecosystem. The Binance Launchpool serves as the external source for the "real yield" that powers the protocol. Additionally, Sigma Money partnered with Binance Wallet for its debut on the "Binance Alpha" platform, which facilitated the $SIGMA token airdrop. ^{[1] [2]}
• ListDAO: This protocol on the BNB Chain acts as a crucial intermediary in Sigma's yield pipeline, responsible for redirecting yield from the Binance Launchpool into the Sigma Money system. ^[1]
• yzifabs and CoinMarketCap: These organizations were co-hosts of the MVB Season 10 accelerator program in which Sigma Money participated. ^[2]