This article is a complete guide on saffron finance crypto (SFI). Decentralized Finance (DeFi) protocols have come a long way in the world of crypto. The saffron finance crypto is one of the promising projects. In the last 90 days, the SFI price has increased by almost +265%. Let’s take a look at What is SFI token and is it a good investment?
Saffron Finance Crypto: What is Saffron?
According to its website, Saffron is an asset collateralization platform. This platform can be used by liquidity providers for selecting customized risk and return profiles. It is a protocol for tokenizing on-chain assets. It includes contracts that contrarily reduce access to the used funds. Tokenized possession of on-chain assets provides liquidity providers more exceptional adaptability and constant access to their collateral while allowing staking and risk management.
In other words, Saffron Finance crypto is a decentralized protocol that optimizes returns for people sharing their liquidity with different calculated tranches at various risk levels. These tranches are configured to two-week periods, where those sharing liquidity over the given pairs gets payouts in return for securing their funds up for two weeks.
Saffron Finance Crypto: What is the Spice token (SFI)?
SFI token or Spice token is the native currency of Saffron. It runs all of its characteristics, outcomes, and incentive arrangements. According to its website, the SFI token is capped at 100,000. The token is then created every 2 weeks. Tokens are gained by LPs equivalent to how many dollars per second (dsec) they contributed to the system in the span of an epoch. SFI token reward is halved every two weeks until epoch 8.
From here, the system regularly delivers 200 SFI tokens per epoch, until touching the 100,000 cap. There are no charges on Saffron in version 1. The next versions will include Saffron platform fees and then staking SFI tokens will get SFI holders a balance of fees acquired by users.
At the time of writing this, the saffron finance crypto price was sitting at USD 1,723.23. The 24-hour trading volume was USD 5,617,339. The current market cap is $154,712,711 USD. and the circulating supply is 89,781 SFI coins.
The Saffron.Finance currently has 3 tranches for liquidity providers. These are S tranche, Yield Enhanced A tranche, and Risk Mitigated AA tranche. In this, the interests of the A tranche can be more than the AA tranche. The members of the A tranche must stake Saffron’s native tokens (SFI) to relieve against crashes on the underlying lending platforms.
Key Features of the SFI Token
- AA Tranche: LPs adding liquidity to the AA tranche receive less interest but are embraced in the case of bankruptcy from platform risk.
- A Tranche: LPs computing liquidity to the A tranche get more interest but lose their interest profits in case of loss.
- S Tranche: The S tranche (currently blended with AA) makes 95% of SFI created per epoch.
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