Most platforms display the taxes on Robinhood Chain stock-paired tokens incorrectly.
Sigma shows much higher taxes on stock-paired tokens than other platforms do.
And Sigma's taxes are correct.
Which means if you use another platform to trade, you're losing money without even knowing it.
The majority of stock tokens have ~5% pool taxes, and trading a stock-paired token requires swapping your ETH between multiple pools (e.g. ETH -> stock, then stock -> token).
Competitors may display the tax for the stock -> token hop. But they neglect to show you the ETH (or USDG) -> stock pool tax.
You can confirm tokenized stocks' pool taxes by looking up a stock on Uniswap and checking the pools for that token. The tax on these pools is displayed and ranges from 4-10% for every stock.
So if you're seeing no tax - or even 1%/1% taxes - when using a competitor to trade stock-paired tokens, that competitor is displaying taxes incorrectly.
You can further verify a competitor's taxes are displayed incorrectly by taking a trade on a competitor and checking the blockchain.
When the trade hops between pools, the amount you receive will fall by a much greater amount than the competitor expects in taxes.
Whether you use Sigma or another platform to trade these tokens, the tax remains the same. The only difference is that if you use another platform, you pay the tax without realizing it.
Sigma runs simulations on every buy/sell before you trade, which means we can accurately predict the tax you will pay. This is another benefit of running our own nodes and not relying on third parties.
And since Robinhood Chain's block time is 100ms, competitors would break third-party nodes by running the number of sims we do.
As a result, competitors run basic scans which often miss the total tax you'll pay - especially on stock-paired tokens, where trades go across multiple pools.
Sigma's routing is also optimized to find you the most efficient route, taking into account taxes, gas, etc.
This means that the route may not always go ETH -> stock -> token, but the route we provide will be the most +EV. A competitor's route is not necessarily the best route.
We ran multiple tests comparing tokens received on buys and ETH received on sells using Sigma and competitors. We tested the exact same tokens and used the same gas.
In all our tests, we received the same (or more) tokens on entries when using Sigma, and the same amount of ETH on sells.
However, because competitors took a much more complicated route in many cases, they paid almost 50% more gas.
We hope this reassures you that Sigma's execution remains the best on any meta, regardless of any FUD.