saffron.finance

saffron.finance

saffron.finance SFI Rank #913

Invest in saffron.finance (SFI) Token. What is it, price and risks

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A Standard for On-Chain Collateral Tokenization Saffron is a protocol for on-chain asset tokenization, including contracts that would otherwise commit access to used capital. Tokenized ownership of on-chain assets gives liquidity providers greater flexibility and seamless access to their underlying collateral, while enabling leveraged participation and personalized risk management. Peer-to-Peer Risk Trading Existing decentralized earnings platforms expose liquidity providers to complex code-based outcomes. Network participants must assess a series of catastrophic scenarios in which the resulting state could wipe out their properties or cause significant temporary losses. It is difficult to predict the net effect of extreme market volatility or targeted economic attacks. Saffron narrows the range of possible outcomes by offering liquidity providers dynamic exposure. The first application of Dynamic Exposure Saffron offers liquidity providers the ability to select customized risk and return profiles using Saffron group tranches. Saffron tokenizes the future earnings stream and the net present value of capital used in each separate tranche. Earnings, based on tokenized shareholdings, are distributed accordingly across all tranches via redemption cascades. Refund Cascade The initial application of the Refund Cascade is divided into two main tranches. - A section "A" with higher performance. -An "AA" supersenior tranche with mitigated risk. The additional cash, when withdrawn, is used to pay down the AA holders' initial principal before paying the higher-yielding A tranche principal and interest. In exchange for this higher performance, participants in Tranche A must rely on Saffron's native (SFI) tokens to mitigate flaws in the underlying platform (such as Compound, Aave, or Curve). The Saffron protocol in this scenario serves as an escrow facility for risk transfer between participants in tranche A and participants in tranche AA. Saffron also includes an "S" tranche to efficiently allocate liquidity based on a tranche balancing algorithm.