Saffron Weekly (05/01/23)
What’s new in the week of 05/01/23–05/15/23.
This past month has certainly been an eventful one for the Saffron community with the initial capped launch of Saffron Fixed Income Vaults. You can find them live here.
As Psykeeper announced earlier Saffron Fixed Income Vaults are a fixed income protocol built on top of Uniswap — an ecosystem that gives liquidity providers a way to earn income on their holdings by contributing two tokens to a pair that others use for swaps. This yield is variable day-to-day based on the volume of trade activity on Uniswap. Like with most anything in crypto it can be volatile; some days the yield is high and some days the yield is low.
Saffron now gives users a way to earn fixed income instead of taking risk on unpredictable volume. Vaults are capped upon release, but users wishing to participate in vault creation are welcome to join us on Telegram or Discord to request a new vault. Below I’ve organized resources for both the beginner and advanced users to learn more about our Fixed Income Vaults.
Saffron Fixed Income Vault Whitepaper
We’ve released our whitepaper for our Saffron Fixed Income Vaults. This paper, written by Psykeeper and Rx, goes into depth on the intricate math and historical data behind SFIV. This is an illuminating read for those wanting an advanced-level explanation of SFIV.
Saffron Fixed Income Vault Primer
If a deep dive comes off as a little intimidating don’t worry — you don’t need a complete technical overview to understand how our Fixed Income Vaults work on a basic level. I’ve written an educational primer using real world analogs to explain how a reverse zero coupon swap (and by extension SFIV) works and how users can take advantage of our protocol.
How Saffron Fixed Income Vaults Will Change DeFi
It’s no secret that our industry is rife with volatility, which is why in the above article I’ve examined three recent black swan events in crytocurrency to explain how SFIV — had it been around during that time — could have helped preserve the value of user assets. Obviously none of us can turn back the clock, but going forward I’m excited that our Fixed Income Vaults can provide new tools for users to be able to reduce their DeFi risk in 2023.
Saffron Fixed Income Vault Calculator
Rx has released a calculator to help users calculate their estimated returns on a potential Fixed Income Vault. I’ve found that playing with the parameters of the vault and seeing how each adjustment impacts the fixed/variable return can help people gain a more intricate and complete understanding of SFIV. We’re adding the final two parameters to the calculator once readers have a chance to play around with the initial setup, this is definitely a useful tool that I recommend everyone take a look at.
Saffron Fixed Income Vaults Survey
Lastly, we have a new feedback survey for everyone to take part in. It should only take about 60 seconds to complete and the team would love to hear the feedback. Let us know your experience interacting with SFIV, what you’d like to see improved in the UI, and any additional features you can think of. Any and all feedback is greatly appreciated!
We’ll be steadily making refinements to our initial rollout of the Fixed Income Vaults this month and if you have a specific pairing that you’d like us to launch a vault for please let us know in Telegram or Discord.
Community resources
Fixed Income Vaults: https://vaults.saffron.finance/
Web3 app: https://saffron.finance
Governance: https://gov.saffron.finance
Telegram: https://t.me/saffronfinance
Discord: https://discord.gg/pDXpXKY
Twitter: https://twitter.com/saffronfinance_
Github: https://github.com/saffron-finance/saffron
