Saffron Finance AMA Transcript

BSC.NEWS hosts Saffron Finance, an asset collateralization platform where liquidity providers have access to dynamic exposure by selecting customized risk and return profiles. All questions were answered by @psykeeper_SFI

By
Kamran Iqbal
on
February 24, 2021
Category:
AMA

Psykeeper: Awesome to be here


Crypto Shrimp (AMA Host): alrite lets get started then


Q1 Can you tell us what is Saffron Finance about? Im sure the community are curious about this.


psykeeper: Saffron is a peer to peer risk exchange giving users customized risk options For example, when farming on the Venus lending pool, users have binary risk — they're either in the pool or they're not. Saffron gives users the ability to select lower risk (lower yield) options or higher risk (higher yield) options. The difference in risk is covered by high risk tolerant users' collateral, which is priced in SFI, and that SFI is staked in the pool as coverage. There are also different implementations of that risk switching mechanism that we're releasing soon

Crypto Shrimp (AMA Host): thats a great overview of how saffron finance works! 

Q2 Lets get to know yourelf and your team members and what are all your past experience?


psykeeper: The team is anon but we've been working on several other blockchain projects in the previous years. Personally I have been working on different implementations of bitcoin, litecoin, and EVM chains for several years now and Saffron is the latest invention of myself and my team. We have over 10 full time engineers and other contributors working on the protocol which will soon be completely decentralized and autonomous which should expand its capacity for contributors

Crypto Shrimp (AMA Host): awesome thats a big team too



Q3 So does that mean you are a supporter of being anonymous, what are the advantages and how did you manage to earn the trust from the community?


Psykeeper: We made the protocol as trustless as possible from the get-go. Locked liquidity, timelocks on governance functions, and made the code as permissionless as possible. It wasn't necessary to trust us from the beginning because of those coded features. We're still improving this with our multisig and on-chain governance rollout. The advantages of being anonymous are many. There is no distraction with personal attacks, biases, or anything other than evaluation based on the work we do. It is the ideal state in my opinion

Crypto Shrimp (AMA Host): I’m sure it will take a lot of convincing to the public to trust the project with being anon, and when you manage to earn the trust it will definitely be organic too

Q4 brings me to another question, upon opening the website some might notice there’s a disclaimer saying saffron is not audited. is it going to be audited or you feel its not necessary, since you mentioned about making the code as permissionless as possible ?


Psykeeper: It is definitely necessary—though right now in V1 we hard fork every 2 weeks and the new code is sometimes changed. Eventually with V2 we will have audited code that stays the same and is perpetual. At that point it will make sense to have an audit and we'll be frozen into those pools for a long time


Crypto Shrimp (AMA Host): thats great to know and im sure the community will feel the same too


Q5 We have covered the safety aspect of Saffron Finance, can we understand more about the project, from the documents there’s tranches and adapters. maybe you can educate us more on how these works and what they do ?


Psykeeper: Saffron pools have a unique feature: tranches. Tranches in traditional finance separate investment buckets into different risk profiles. For example, a risky tranche and a less risky tranche. In general, risky tranches have higher yield. Users can select a high or low risk tranche with Saffron. Right now there are two tranches in V1: S and A. The S tranche is the less risky tranche, and the A tranche is high yield with higher risk. The risk comes from covering underlying platform loss. If no event of loss occurs then the A tranche LPs are given enhanced yield. If there is loss then their yield and their SFI are taken away to cover the loss from the S tranche LPs. Adapters are a technical term for how Saffron pools connect to other DeFi platforms and protocols. The Saffron pool itself only knows about how to interface with users and how to divide up tranche interest. Adapters know how to talk to a pool and how to talk to other protocols. That way we can create new adapters and new pool types and have a multiplied number of different pools that can be applied to the number of adapters we have. For example if we have 3 pool types and 10 adapters then we have 30 different possible farming options. It gets complex but this is to say we have designed the system to be able to give customized risk to all DeFi protocols


Crypto Shrimp (AMA Host): so basically the adapters work hand in hand with pools, whereas tranches are like individual coverage level is that right to say?


Psykeeper: That's right


Crypto Shrimp (AMA Host): awesome you made it easy to understand!


Q6 so how can this be incorporated in BSC for an instance? Im sure the project leaders and community will be interested. And does it help in protecting both parties?


Psykeeper: Tomorrow we're releasing our first V2 beta pool: the BUSD/Venus pool. Users who are supplying BUSD to Venus can instead use the Saffron pool to either get coverage for underlying loss or get enhanced interest from the A tranche. This adds a layer of protection or a layer of enhanced yield on top of Venus. V2 is also much more flexible than V1 and will allow us to create some new types of pools for other networks like Auto and Beefy

Q7 what you mentioned sounds like an insurance to the public, eg who invest in VENUS, am i right to say saffron finance allows people to choose a tranche, where they’re protected in the event of an issue. And that issue is not only a smart contract issue, but it could also be an economic issue?

Psykeeper:  That's correct, in V2 we plan on having economic indicators via oracle providers (Chainlink for example) which will provide cover for economic attacks and economic factors such as a market crash. We're currently in the beta phase of these pools as they're being developed right now


Q8 you mentioned that saffron is in V2, what has been done and improved from the previous v1?


Psykeeper:  V2 includes a number of improvements over V1:

- perpetual staking

- new tranches (S split up into S and AA)

- new pool types (market rate pool, fixed rate pool)

- less rigid structure allowing us to continually release new pools

- impermanent loss and market-based cover pools

In general V2 is a gas savings, it is a UX upgrade, and it is a major improvement on our ability to deliver new yield opportunities to users


Crypto Shrimp (AMA Host): thats a lot of improvement in v2


Q9 we know the APY in BSC is crazy sometimes, and looking at Saffron Finance pools, it will take a lot of convincing to get ppl to invest in the pool, how do you plan to do that? eg marketing or attracting different group of ppl?


Psykeeper:  We think marketing and community engagement are extremely important — but most of all crypto users are early adopters because crypto is so new and unique and difficult to understand. Saffron is a new concept and early adopters like to try new things which lends itself well to the current environment. Plus, some coverage on farming is nice to have when there is the real risk of a bug or an underlying platform issue


Crypto Shrimp (AMA Host): do you have a marketing team to do that engagement or you are focusing on the development of the project and outsourcing the marketing aspect of it


Psykeeper: We don't have a marketing team right now because all engagement has come from composability, which is to say, our seamless integration with other DeFi protocols gives us free marketing as a double benefit to providing a Saffron tranche layer to their protocol. We're executing at a quick pace and this allows us to enter into the mindshare of all crypto users without having to do any type of meme marketing or pay for attention from users


Q10 What are the short term development that you guys are looking to do?


Psykeeper:  Right now governance is going to be our short term goal. Having a fully on-chain decision making protocol to make Saffron into an autonomous organization is the number one priority. Another goal is a re-design of the UI which includes a brand new look as well as enabling more wallets other than metamask


Crypto Shrimp (AMA Host): and i guess getting audited is also part of the short term development too


Psykeeper: Of course yes


Crypto Shrimp (AMA Host): so you basically covered the safety and security and feedback from the public


Psykeeper: V2 will be launched with a full audit. Correct. We take community feedback very seriously — we have multiple community surveys out in the wild at any given time and respond to them in-kind


Crypto Shrimp (AMA Host): im sure with scurtiny, defi can be made less risky


Q11 Whats the roadmap currently planned for saffron? we want to know the long term goals or future plans


Psykeeper: Long term goals are:

1. Ship V2

2. Impermanent loss protection

3. Integrate with all DeFi protocols to offer customized risk

4. Expand into other types of asset collateralization 

5. All of the above accrue value to the Spice token (SFI) which is our ecosystem token

We are also starting a research initiative which will have an academic and educational focus. Yes, the overall idea and focus of Saffron low-risk tranches is to introduce more risk-adverse users to DeFi


Crypto Shrimp (AMA Host): thats a big load of items to complete!


Psykeeper: We're hiring :)


Crypto Shrimp (AMA Host): bsc news can cover all the marketing needs you require haha


Q12 Last question from me, Do you have links that the community can visit and know more about the project?


Psykeeper: saffron.finance. Introducing Saffron V2 ♨️ https://t.co/LaMGZiZAEz Saffron V2 beta goes live on Binance Smart Chain and Ethereum Mainnet on Wednesday, February 24th #BinanceSmartChain #Ethereum. The community can learn more about our V2 launch and sign up for beta access here: https://twitter.com/saffronfinance_/status/1362986523650621442

And an introduction to Saffron can be found on our Medium page. As for more questions about Saffron Finance TG https://t.me/saffronfinance


Crypto Shrimp (AMA Host): Thank you so much for your time today @psykeeper_SFI it has been both educational and insightful AMA for Saffron Finance! hope you can stick around for a while more to see if theres any questions from the public. i will also unlock the room to see if theres any more questions to cover.


Psykeeper: Of course! Thank you for this opportunity


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