saffron.finance SFI

Ethereum · Decentralized Finance · Ethereum Ecosystem · Yield Aggregator

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𐁉 Saffron: A Fixed Yield DeFi Primitive Saffron splits the fees earned by a Uniswap position into an upfront premium payment and a variable yield token. The upfront premium can be expressed as an annualized fixed rate. The yield token holder earns all yield from the deposited Uniswap position. Saffron vaults facilitiate this fee splitting mechanism. Saffron vaults are permissionless, immutable, and non-upgradable. They are a DeFi primitive built on the core principal of building composable fixed yield for DeFi. Uniswap fees are the first underlying yield source. All deposits into Saffron (fixed or variable) are standard ERC20 tokens. Like any ERC20 token, they have properties that allow them to be traded, used as composable DeFi legos, or borrowed against. Therefore, Saffron can be used for many practical applications: - to earn an upfront payment for a productive asset - to incentivize onchain liquidity for token issuers - to buy a hedge before the price moves against your holdings - to facilitate a bespoke options contract that earns swap fees from deposited collateral - to loop liquidity to earn more yield by accepting higher path dependency - to borrow against yield from the future ...and many more