About saffron.finance Coin
saffron.finance price today is $2,088.76 with a 24-hour trading volume of $11,929,041. SFI price is up 12.0% in the last 24 hours. It has a circulating supply of 80 Thousand SFI coins and a max supply of 90 Thousand. Uniswap (v2) is the current most active market trading it.
What is Saffron Finance (SFI) token?
SFI is a utility token that is created and issued by Saffron Finance, an asset collateralization platform where liquidity providers have access to dynamic exposure by selecting customized risk and return profiles.
What is Saffron Finance?
Saffron Finance is a decentralized protocol that acts as a yield optimizer for liquidity providers – it was first announced through a Medium article by a group of anonymous developers and was later launched on the Ethereum main net on 1 November 2020. Liquidity pools in Saffron Finance collect deposited base assets from liquidity providers and deploy them onto lending platforms to earn interest. However, unlike other yield aggregators, Saffron Finance aims to differentiate itself through the introduction of tranches.
One of the biggest issues that yield farming pools face is the effects of impermanent loss. Liquidity providers may lose out on value when the market price of their deposited assets is lower than when it was initially deposited. Through tranches, Saffron Finance aims to provide better exposure to yield farmers and give them the option to select portfolios based on their preferred risk appetite.
How does Saffron Finance work?
Saffron Finance acts as an intermediary between liquidity providers and lending protocols. Through adaptors, the Saffron Finance protocol will automatically deploy its liquidity pools to the highest-yielding lending protocol at a given interval. Liquidity providers may supply Saffron Finance’s liquidity pools at any given time but are only able to withdraw their assets and interest earnings at the end of every epoch. Each epoch lasts for 2 weeks.
What can Saffron Finance (SFI) tokens do?
SFI tokens are primarily used as a utility token to gain access to specified tranche(s) in Saffron Finance’s protocol. At the time of writing, there are three (3) tranches available which are tranche A, S, and AA. Users must stake SFI tokens (alongside with providing liquidity) to gain access to tranche A. Liquidity providers for tranche A have higher exposure as they will insure the other tranches in the event of loss from platform risks. However, in return for higher exposure, liquidity providers participating in tranche A will also earn higher interest.
How to obtain Saffron Finance (SFI) tokens?
SFI tokens can be obtained through two (2) methods.
The first method is buying them from an exchange such as Uniswap. You can browse through the various centralized and decentralized exchanges by heading over to our exchanges page here. Alternatively, you can check out Saffron Finance’s (SFI) markets for an overview of the different exchanges SFI is traded on.
The second method is to deposit assets into Saffron Finance’s website and earn SFI tokens in return for staking. Liquidity providers will earn SFI tokens at different rates, depending on the size of their liquidity provided, and the type of tranche they are participating in. However, it should be noted that this method will eventually cease to exist once the circulating supply reaches its maximum cap of 100,000 tokens.