saffron.financeSFI
$42.0
Market/Exchange
SFI Price Prediction and Price Movement
SFI has been down 7.11 percent over the last three months, and with its small market capitalization, it is very likely that such price movement may continue. However three months is still considered early in the crypto world and it is also likely that SFI's price may bounce back if it has a solid team and has delivered what they promised on their white papers. Therefore traders should be careful and should research thoroughly and see if SFI is backed by a solid development team and whether SFI's technology has any potential to grow.
Please note that this analysis is purely base on SFI's historic price actions and is by no means financial advice. Traders should always do their own research and be extra careful while investing in cryptocurrencies.
saffron.finance Price Chart
About saffron.finance
A standard for tokenizing on-chain collateral
Saffron is a protocol for tokenizing on-chain assets, including contracts that otherwise impair access to utilized capital. Tokenized ownership of on-chain assets gives liquidity providers greater flexibility and uninterrupted access to their underlying collateral while enabling leveraged staking and bespoke risk management.
Peer to peer risk exchange
Existing decentralized earning platforms expose liquidity providers to complex code driven outcomes. Network participants must evaluate an array of catastrophic scenarios where the resulting state could wipe out their holdings or lead to significant impermanent loss. It is hard to anticipate the net effect of extreme market volatility or focused economic attacks. Saffron narrows the set of possible outcomes by giving liquidity providers dynamic exposure.
Dynamic exposure
The first application of Saffron gives liquidity providers the option to select customized risk and return profiles via the use of Saffron pool tranches. Saffron separately tokenizes the future earning stream and the net present value of utilized principal in each tranche. Earnings, based on tokenized holdings, are distributed accordingly across all tranches via payback waterfalls.
Payback waterfall
The initial application of the payback waterfall is split between two primary tranches. -A yield enhanced “A” tranche. -A risk mitigated super-senior “AA” tranche.
Added liquidity, when removed, is used to pay back the initial principal of AA holders before paying the principal and interest of the yield enhanced A tranche. In exchange for this enhanced return, participants of the A tranche must stake Saffron’s native tokens (SFI) to mitigate against failures on the underlying platform (such as Compound, Aave, or Curve). The Saffron protocol in this scenario acts as an escrow service for transfer of risk between A tranche participants and AA tranche participants. Saffron also includes an “S” tranche for allocating liquidity efficiently as it is needed based on a tranche balancing algorithm.