What is Saffron Finance? Saffron Finance is a peer-to-peer (P2P) risk exchange protocol. The protocol allows users to tailor risk and returns to suit their investment style. So what is Saffron Finance? Let’s find out in this article!
To understand more about this article, you can refer to the Gro Protocol article here.
What is Saffron Finance?
Saffron Finance is a peer-to-peer (P2P) risk exchange protocol. The protocol allows liquidity providers to tailor risk and returns to suit their investment style.
Saffron Finance acts as an intermediary between the liquidity provider and the lending protocol. In which, liquidity providers can provide DAI, WBTC, USDT, USDC assets to the Compound lending protocol through various SFI tranches.
The protocol’s native token SFI is used to gain access to specified tranches on the protocol through staking as well as to manage the protocol. Upon release of V2, SFI holders are entitled to protocol fees.
Mechanism of Action
On Saffron Finance users can provide assets from one party such as DAI, USDT, USDC, WBTC and provide liquidity pairs related to SFI for Dexes such as Uniswap, Shushiswap. The most prominent product on Saffron is Tranche.
Tranches
The funds are divided into tranches, each with their own unique attributes. There are three rounds available to users for LPs to add liquidity. There are two backend tranches that exist only at the smart contract level to give LPs more options when adding liquidity. In AA Tranche, people who add liquidity only receive 1/10 of the interest they earn, the rest will be transferred to A Tranche and in return A Tranche will insure, meaning bear all risks when the Farm loses liquidity. Loss of property or hacker attack for AA Tranche.
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AA Tranche: LPs add liquidity to AAs earning less interest but are insured. That insured capital comes from the principal and interest assets of LP A Tranche. In AA Tranche earn 95% of SFI tokens spawned in each epoch.(Now merged with S Tranche).
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A Tranche: LPs adding liquidity to A Tranche earn more interest but lose principal and interest in case of losses due to platform risk. In A Tranche earn 5% of SFI tokens generated in each epoch.
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S Tranche: S Tranche is now merged with AA Tranche.
Development Roadmap
- October 2020: Beta Launch.
- November 2020: First ERC20 SFI created and minted.
- January 2021: SUSHI cooperates with Saffron to add SFI/WETH group to Onsen program.
- V2 Upgrade: Plan for more flexible era deployments, integration with multiple platforms such as AAVE, CREAM, etc. Additionally, the V2 upgrade will bring increased SFI waves providing more possibilities more customizable (i.e. fixed interest tranches) and allows token holders to accumulate fees from the protocol. Regarding governance, the SFI team plans to transition some functionality to a multi-signature community and eventually transition to a full DAO.
Core Team
Updating…
Investors
March 8, 2021: The project successfully raised $2M from funds Multicoin Capital, Coinbase Ventures, Dragonfly Capital, Leo Cheng, Meltem Demirors, Defi Technologies, Brandon Chez, Tegan Kline.
Tokenomics
Overview information about Saffron Finance Token
- Token Name: Saffron Finance
- Ticker: GFI
- Blockchain: Ethereum
- Standard: ERC-20
- Contract: 0xb753428af26e81097e7fd17f40c88aaa3e04902c
- Maximum supply: 100,000
Token Allocation
- Liquidity Miners: 60%
- Team: 25%
- Government-Control Treasury: 15%
Token Use Case
- Governance: SFI Token holders have voting rights on the protocol.
- Liquidity reward: SFI is rewarded to liquidity providers (Liquidity providers) through Liquidity Mining.
- Staking: LP must use SFI to stake before wanting to participate in A tranche and share protocol fees.
Exchanges
GFI Token is traded on Cex exchanges such as Gate and Dex exchanges such as Uniswap, Shushiswap, Bancor.
Information Channel of Saffron Finance
- Website: https://saffron.finance/
- Twitter: https://twitter.com/saffronfinance_
- Discord:
Summary
Saffron Finance has also brought effective solutions to DeFi, but the project has shown its level of inefficiency. When the current TVL does not have up to $1M. Currently, DeFi is developing very strongly, so if the project does not develop accordingly, it will be left behind.
So I have clarified what Saffron finance is? Overview of Saffron Finance cryptocurrency. Hope this article brings you a lot of useful knowledge.
