What is Saffron.Finance (SFI)?
SFI is the native token of a decentralized protocol called Saffron.Finance. The protocol is used for on-chain asset tokenization and optimization of liquidity provider yields. Yield farmers on Saffron.Finance have dynamic exposure to the market in addition to having the option to select a portfolio according to their risk appetite through tranches.
Check out the live SFI price on the Saffron.Finance price chart featured above.
Once users deposit their assets into the platform, the assets are deployed to Saffron.Finance's lending platforms via a liquidity pool. These assets yield combined interest. Adaptors automatically distribute Saffron's liquidity pools to lending protocols with the highest yield. The liquidity pools can be supplied at any time by liquidity providers. However, the assets, as well as generated interest, can only be withdrawn at the end of every epoch (every two weeks).
In contrast to other yield aggregators, as mentioned before, Saffron Finance uses tranches. As of writing this, it is possible to access three tranches – S tranche, Yield Enhanced A tranche, and Risk Mitigated AA tranche. While the A tranche's returns may be significantly better than those of the AA tranche, participants in the A tranche are required to stake Saffron.Finance tokens in order to protect themselves from disruptions of the underlying lending platforms. However, liquidity provision in tranche A results in higher interest rates due to higher exposure to risks.
Use Cases of SFI Tokens
Saffron.Finance coins are primarily used to gain access to tranches on the protocol. As mentioned before, in order to do that, SFI tokens have to be staked. Besides that, SFI stakers also get governance rights, which means that they can vote on various decisions considering the future development of the Saffron.Finance crypto project.
Who Founded Saffron.Finance?
Saffron.Finance was first announced by an anonymous developer (or developers) in a Medium article. In November 2020, it was formally launched on the Ethereum mainnet.
The founder of Saffron goes under the pseudonym Psykeeper. He chose to remain anonymous. However, it's known that he has extensive experience in the cryptocurrency industry. His interest in alternative uses for blockchain technology began with contributing open-source code to altcoin and Bitcoin communities.
Tokenomics of Saffron.Finance
The max supply of SFI tokens is 100,000. Initially, 40,000 Saffron tokens were minted as a part of Saffron.Finance token offering on November 15, 2020. More than half of the SFI token supply (60%) is dedicated to liquidity providers. The remaining portion was distributed to the core team and set aside in the Saffron.Finance treasury.
If you plan to purchase Saffron.Finance coins, keep in mind that the SFI price may change due to various factors. Thus, make sure to check the aforementioned price chart to see the current, and the previous, Saffron.Finance price.