Saffron Weekly (12/23/22)
What’s new in the week of 12/23/22–01/05/23.
2022 has been a wild bear market year — and you all have been very patient as we have been working diligently on our next Saffron product. If you’ve been following our community this year you’ll know that we’ve been extremely tight lipped about what we’ve been working on. As we close out the year I have a few exciting things to finally share with you all, most notable of which is that our new product Fixed Income Vaults are finishing up the final preparatory stages before being deployed for all Saffron users to take advantage of.
Currently 1/2 audits have been fully completed, we’re working on a new and more robust infrastructure for the back end, and we will launch these vaults as soon as the final audit is completed. At this time we’re anticipating a Q1 2023 launch date for this exciting DeFi tool.
What are Fixed Income Vaults?
We will be releasing in-depth explainer videos early next year to onboard both retail and institutional investors, but for now let’s take a brief look at what Saffron’s Fixed Income Vaults are.
Our Fixed Income Vaults utilize a traditional finance interest rate swap. These interest rate swaps are ubiquitous in traditional finance, accounting for 60% of the global derivative market with a gross market value in the trillions of dollars.
But how exactly does this translate to crypto and DeFi? Essentially, we will be using an interest rate swap to turn unpredictable Uniswap yield into fixed yield.
Anyone who has been involved with DeFi is familiar with liquidity pools and liquidity providers on UniSwap v3 — where users can deposit ERC20 tokens to earn fees. Whenever a trade occurs, a fee is charged to the transaction sender. This fee is distributed pro-rata to all LPs in the pool upon completion of the trade. As a result, an LP for an ERC20 token pairing that has high volume (i.e. lots of users are trading that token pairing) are able to generate an impressive yield on their position.
What if there was a tool that made it possible to take a speculative bet on volume and make it into something stable and secure — by nature of it being paid up front — for these LP positions?
Enter Saffron’s Fixed Income Vaults — a new financial tool powered entirely by smart contracts that introduces this market efficiency. In 2023, Saffron will be the first to bring this popular financial instrument to Uniswap (with more planned) and we‘re excited to show you more in the coming weeks.
Koge Roadmap Released
In addition, our 2023 Koge Roadmap has been released — check it out here.
We believe that taking advantage of the current bear market (and subsequent industry-wide lull in activity) and prioritizing optimization tweaks to the Koge protocol will prop us up for massive success when mainstream interest returns to crypto. We’re making a number of internal performance adjustments to increase stability, accuracy, and overall user experience of KogeFarm that simply weren’t possible back during the height of the bull. Our goal is to refine the DNA of KogeFarm to put us in the best possible position to capitalize when mainstream interest returns.
Developer Update
Turpintinz gives us another development update:
Hello, all, here is a quick update on the Saffron Badger development work. Last week, I was able to exercise the compounding processes against the mainnnet deployed contracts. Good news is that the Saffron contracts did pick up some yield from the Badger vault. Bad news (well, good news for testing) is I did find some bugs that needed repair. This forced me to make contract changes and redploy the contract for compounding. My plan for this week is to continue exercising and testing the automatic compounding processes fixing bugs that crop up. Beware with the holiday coming, I’ll have no update next week. Happy holidays and New Year to you all!
Enjoy the holidays, stay warm, and we’ll see you all next year!
Community resources
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
