What is Texture Finance? Texture Finance is a Yield Farming platform built and developed on Solana. However, in a forest of Yield Farming projects on Solana, which strategy of Texture Finance makes it stand out, everyone and Weakhand will find out in the article below.
What is Texture Finance?
Texture Finance includes many different strategies that help users optimize their assets. Currently, the project is providing two services: Leverage Liquid Staking and Flash Loans.
Leverage Liquid Staking product
A safe strategy that brings high profits to users, or called No Risk High Return in the crypto market, is the strategy that revolves around the derivative assets that users receive when depositing their assets on the crypto market. Liquid Staking platforms. The strategy will go as follows and I will take as an example the asset here which is SOL:
- Step 1: Deposit 100 SOL to Lido Finance with an APR of about 10% then Lido Finance will return 100 stSOL to the user. The price of stSOL will be tied to SOL so the value of these two assets is the same.
- Step 2: Deposit 100 stSOL into the Lending & Borrowing Solend platform to borrow out 80 SOL (the problem here is that the interest rate from lending stSOL and borrowing out SOL is only 1% different). Then at this step the total profit is 9%.
- Step 3: Continue holding 80 SOL into Lido Finance to receive 80 stSOL with an APR of about 10%.
- Step 4: Deposit 80 stSOL into Solend to borrow 64 SOL.
- Step 5: Repeat the steps above.
It can be said that if we keep repeating these steps, every time we complete 2 steps, we will get an APR of 9%, then after n steps, the APR will be much higher than normal staking. The reason we say No Risk High Return is that the price of stSOL is always equal to the price of SOL, so there will be almost no liquidation risk on Solend.
However, if you do the above steps, it will be extremely boring, so Texture Finance is an automatic tool. All you need to do is deposit SOL into the platform and all the following steps will be automatically deployed for you. in a very easy way.
When you deposit SOL into the platform, you will receive txtSOL and can use this asset in DeFi with projects that integrate this token.
Flash Loan products
Texture Finance allows users to deposit USDC into their pool and provide Flash Loan service to other users earning about 0.05% interest.
Flash Loan is often suitable for those who arbitrage between AMMs.
Core Team
Update…
Investor
November 9, 2022: Texture Finance announced a successful call for $5M led by P2P Capital and many other investment funds such as intermute, Semantic Ventures, & Jane Street Capital.
Tokenomics
Update…
Exchanges
Update…
Texture Finance’s Information Channel
- Website: https://texture.finance/
- Twitter: @texture_fi
- Blog: https://blog.texture.finance/
- Discord:
Summary
It can be said that Texture Finance is trying to simplify simple but time-consuming problems in the crypto market for users. However, Texture Finance needs to launch more strategies in diversifying investment portfolios for users and the Flash Loan product also has many risks.