DISCOVERYING SIL_FINANCE AND IT’S PRODUCTS

7 min readOct 19, 2021

Must read

WHAT I UNDERSTAND ABOUT SIL_FINANCE

Researching about crypto projects has been my hobby for some while, like that I have been exposed to blockchain industries and DeFi projects. I have known how they operate, and will be able to dictate the promissing ones.

Upon my researches and observations, Sil_finance (Sister In Law) is the world’s first decentralized LP composer that purely built on smart contracts technologies, to user’s concept, it’s a single sided yield aggregator (1 click hedging) with adventurous functional #NFT farming card add-ons. SIL focuses on providing users with unique DeFi Financial Management experiences with creative recreations.

SIL provides dual-token liquidity for variable swaps, automatic LP matching, and automatic compound interests. According to factors such as annualized rate of return, safety factor, financial management cycle, etc., it automatically selects and configures products that best suit the interests of users, making complex liquidity mining to become simple. | The SIL’s model is unique on the DeFi market, it’s single-sided functionality is solely contributed by users, the product gives all the possible choices back to the community and is way more open than yield products.

The revenue of mining will be distributed to all users in proportion, there is no intermediary, no principal commission fees. It’s fair and just. The platform is jointly built by crypto enthusiasts from all over the world, and the management of the platform is entrusted to all SIL holders.

INTERESTING PARTS & QUALITIES OF SIL_FINANCE

LP Grouping: Similar concept to the DeFi “Vault”. For instance, user_a holds ETH but not USDT, user_b holds USDT but not ETH; b wants to participate in the mining to gain interest; while due to ETH’s price soars, b does not want to convert USDT to ETH to participate; SIL provides a liquidity pool that matches (grouping) user_a’s ETH with user_b’s USDT as a bundle to participate. This pool halving the risks for both user_a and user_b, mutually benefits both of the users in a P2P dual-mining model.
Compound interest mechanism
Matryoshka Mechanism: Based on the LP matching mechanism, besides gaining compounding interest on the original digital asset(s) investment, SIL token is issued to participants through such a mining process.
Total Issuance: 30,000 SIL; Total Circulation: 30,000 SIL.

SIL features a three-tier architecture: SIL Master, MatchPair and StakeGatling.

SIL Master is the entry management contract, processing transactions and the distribution of SIL Token.

MatchPair is responsible for matching. The matching queue adopts a first-in-last-out model to ensure that users who recharge first are matched first. When the matching party withdraws funds, the queue adopts the last-in-first-out model. It also ensures that users with priority recharge are in a relatively safe queue position.

StakeGatling is responsible for collateralizing the matched LP to the mining contract. And then according to the configuration strategy, it will automatically roll out the profit, CLAIM income and convert the income of CLAIM into LP through Swap/Mint, and re-mortgage to obtain income to ensure the maximum benefit.

PRODUCTS OF SIL

HEDGING: Single token hedging on top of LP farms, users get 2x leverage alike experience simply by depositing (use AMM’s X * Y = K). One of the core features of SIL is to bet on long or/and short, which essentially utilize the AMM protocol and SIL’s LP composition at the same time. It requires users to have some pre-judgements of the market, the best practice is to stake long-term bullish, short-term bearish assets.

The benefits of this product are as follows

SIL’s hedging can’t get you liquidated, it’s has a mild curve as the UNI v2 curve
Relative price(A/B assets) impact (raterate) will be reduced to \sqrt{rate}rate

SIL’s HEDGING mode has been launched on Ethereum and Binance Smart Chain. Each chain supports different trading pairs on different swaps, but the mechanism is the same.

Let's take the following pairs as two examples.

Taking the CAKE/BNB trading pair as an example, if CAKE rises relative to BNB (or the fiat value of CAKE is rising over the fiat value of BNB), then in the LP composed by CAKE/BNB, the number of BNB will be decreased, and the number of CAKE will be Increased.

If the user believes that the probability of CAKE rising is greater than that of BNB, then he can choose to pledge BNB. If CAKE rises as desired, the number of BNB in the user's hand will be increased and captured the benefits of the price increase of CAKE; if the user feels the probability of CAKE falling in the near future is larger than BNB, but you don’t want to sell the CAKE on your hand, you can choose to pledge the CAKE. If CAKE falls, the number of CAKE in the user's hand will be increased, which can reduce the loss of the user caused by the fall of the price of the cake.

What needs to be clear is that in the HEDGING mode, when users withdraw(release their LP), the number of tokens displayed on the UI interface is exactly how much the user will receive, and there will be no impermanent-loss mitigation.

SIL YIELD FARMING

What is Yield farming? Yield farming is a cryptocurrency investment strategy that holds out the hope of bigger returns than most conventional investments are offering these days. It could be a chance for the bold to win big -- or for the holders of new currencies to manipulate prices. Yield farming is also known as yield or liquidity harvesting, involves lending cryptocurrency. In return, you get interest and sometimes fees, but they’re less significant than the practice of supplementing interest with handouts of units of a new cryptocurrency.
SIL YIELD: The core features of SIL is the Yield Mode, where users rangeed from entry-level to advanced all can easily participate. This mode is based on AMM protocol(UNIv2) and SIL’s LP composition and SIL’s auto-compound and and SIL’s IL Mitigation all at the same time. It doesn’t require users to have pre-judgements of the market or sort, just deposit and earn.

The benefits of this are as follows

SIL’s Yield Mode is quite stable, and mitigating IL at the same time
You only need to deposit single-sided tokens without worrying counter-party assets

SIL’s Yield Mode has also been launched on Ethereum and Binance Smart Chain and OkexChain. Each chain supports different trading pairs on different swaps.

xSIL

The SIL Augmented NFT will help you stand out from the competitors. It will help you yield maximum results. One of the best benefits of this platform is that you can easily merge and trace.

xSIL is a part of the SIL Finance community. Therefore, individuals can easily get into the platform and start investing in it. Similar to the concept of SAFN, xSIL is aimed for cryptocurrency gamers.

SIL NFT:

SIL has the best NFT product I must say, their SAFN is divided into 5 levels, from low to high: common, uncommon, rare, epic, and legendary. The higher the grade, the higher the rarity, the smaller the circulation and the stronger its additive effect. For example, an ETH acceleration card with legendary rank with Vitalik cover will enhance the mining speed of all ETH-related LP pairs. If this SAFN card is obtained, it can be injected into the mining pool (use this card to speed up ETH mining when the ETH is on either side of an A/B asset, such as ETH / BUSD or BTCB/ETH, for more mining gains) and the user’s SIL mining rate will be multiplied by the multiplier on the card.

Each SAFN issue is limited in number and will be sold for a certain period of time, and all SAFN cards are sold through the Mystery Box Store. Users can get SAFN by purchasing the Mystery Box, or they can get NFT Mystery Box airdrop to get the chance to draw SAFN in some official events.

CONCLUSION

The revenue of SIL mining will be distributed to all users in proportion, there is no intermediary, no principal commission fees. It’s fair and just. The platform is jointly built by crypto enthusiasts from all over the world, and the management of the platform is entrusted to all SIL holders.