DeFi token named Saffron.finance (SFI) has attracted all the attention with its 185% rise in the last 24 hours. According to CoinMarketCap data, the token ranked 384th was trading at $ 595 at the time of writing. Screen Image 2020 11 20 13.36.04
So what is SFI, what does it do?
Saffron is an asset collateral platform where liquidity providers can access dynamic exposure by choosing customized risk and return profiles.
Existing decentralized earning platforms expose liquidity providers to complex code driven results. Network participants should consider a range of disaster scenarios where the resulting situation could destroy their assets or lead to significant non-permanent loss. It is difficult to estimate the net impact of excessive market volatility or focused economic attacks. Saffron aims to narrow the possible consequences by offering dynamic exposure to liquidity providers.
Saffron.finance system consists of liquidity pools. Pools on Saffron.finance collect underlying assets deposited from liquidity providers and place them on platforms to earn interest. For example, the first Saffron pool is the DAI pool initiated with DAI / Composite Compound.
Adapters connect the pooled capital to the platforms. The first adapter is a DAI / Compound adapter. The DAI / Compound adapter, as the name suggests, connects the DAI pool to the Compound platform, giving DAI pool LPs the opportunity to create a pool on the Compound and gain interest.
The strategy connects all pools and adapters and chooses the best adapter to distribute the capital hourly for each pool. It also generates SFI tokens at the end of each period and distributes them to LPs.
Periods are two-week periods in which liquidity is locked and distributed to the platforms by the system. It is deducted at the end of a period and the interest earned is calculated and distributed to LPs according to their proportional tranche ownership. During the fall, SFI tokens are generated and can be used using the same proportional calculation used to capitalize on interest.
What is SFI Token?
SFI tokens are capped at 100,000 and are generated every 2 weeks at the expiry of a period. Tokens are earned by LPs in proportion to how many dollars per second (dsec) they provide to the system over a period of time. The SFI token subsidy is halved every period until the 8th period. From this point on, the system continuously issues 200 SFI tokens for each period until it reaches the 100,000 limit.
Some traders claim that there is a magic similar to yearn.finance (YFI) in SFI token on Twitter.