/biz/ - Business & Finance

The A tranche
The A tranche is an important part of the Saffron platform. Without it, there wouldn’t be any coverage provided by high-risk participants, who pay for the AA tranche’s losses in the event of an underlying platform failure. The A tranche LPs gain a yield-enhancing multiplier because they lock their SFI tokens in Saffron’s contract while their DAI is sent to a lending platform to earn interest. In case of a catastrophic failure in DAI or the lending platform, the A tranche’s SFI is transferred to the AA tranche LPs who are effectively a buyer of the A tranche’s loss-protection contract.

SFI required for staking into the A tranche have a calculated value assuming a relatively stable interest rate on an underlying platform. For example, if access to the A tranche’s 10X interest would increase an LP’s yield by $X, then it is rational for them to price SFI at a ratio of $X according to how many are needed to access the A tranche. In epoch 1, the A tranche will offer 10X yield, and the SFI ratio will be 1 SFI for every 1,000 DAI.
SFI required to participate in the A tranche is locked until the end of the epoch alongside the DAI it gets added with.

AMM Liquidity Token Pools
In our previous article we introduced the new concept of a Saffron AMM Liquidity Token Pool. This pool type acts as a short-term staking mechanism while also providing a service to the community. Epoch 1 and all subsequent epochs will include a pool for locking Uniswap V2 LP tokens where LPs compete for a mining subsidy. The first AMM Liquidity Token Pool subsidy is 3,750 SFI, shared among LPs in the pool proportionally with dsec, similar to the DAI lending pool mining reward distribution.

Governance

There have already been a number of initiatives brought up by community members that should have gone to a vote. Without a token minted, however, it is nearly impossible to coordinate and ensure stakeholder value is maintained. In addition, centralized governance comes with EOA key risk, something that should be mitigated as soon as possible.
Variables that help the system maintain efficiency need a voting process to change. The Saffron team would like to open that process up to its community and encourage others to vote on initiatives and suggested changes to the protocol.

Staking pool

The SFI staking pool, which holds and stakes your SFI for an epoch, can be used to increase SFI holdings based on your initial deposit. The staking pool is one of the first pools that will have its rewards converted to pay out based on a share of Saffron platform fees.
Fees
When SFI token generation winds down, AA tranche users will rely on platform fees to compensate them for their forfeited interest. AA tranche users as well as SFI holders (stakers) will receive a percentage of reward shared between competing stakers.

>>24152275
Goddam that Freeman brought up some memories from highschool and college. Online DM was the absolute SHIT back then.

>>24152275
saffron.finance (SFI) $703.06 USD (-18.14%)

>>24153123
Overpriced?

this shit gets me so hard

>>24153259
Not yet

>>24153259
it just dumped like 60%...no

>>24153123
it's a good oportunity to buy it !

>>24153332
rasheed in the comments watch out bizians

>>24153596
>Doesn't even bother to look into the fucking coin

>>24153596

Hey Rasheed here, you called?

SFI is for everyone on this planet. Even niggers

>>24153596
its funny being on the other side. Being called Rakesh because i was actually early for once and made nice gains. Your time will come baby dont you worry.

>>24152593
What is an A tranche?

>>24154203
Serious

>>24152275

>>24154203
Read the fucking medium article brainlet

>>24154813
Lmao. Good work anon

>>24154813

>>24153332
Nice maths. Retard it's max dump was 40%, or a correction.

$40 to $1k in week, ever heard of a correction? Big buys on dip too.

>>24155220