Author: @Chinh Nguyen
The Formation Fi will tell you how much you can lose in Yield Farming. If you care about the liquidity pools to increase the amount of coin, and Impermanent Loss or Rug pull and Slippage are the things you worry about. Formation.FI will help you takes care of it
– The project introduces the concept of loss/risk that users encounter in participating in liquidity pools. Formation.fi aims to provide a risk reduction strategy
that allows investors or hedge funds to consider their investment.
– Moreover, Formation.Fi emphasizes that in the centralized financial market is that inequality can exist. To reduce this issue, Formation.Fi has considered and selected Risk Parity – one of the investment strategies well-known and efficient design, used largely in traditional financial companies such as Bridgewater Associates and AQR Capital Management
– Building Bridges to bring Cross-chain Risk Optimized Return easily to the user
– Risk Parity is a strategy focused on balancing risks. Instead of focusing solely on APY, Risk Party will invest in a variety of assets
and using leverage to improve returns while keeping risk under control.
– An example of the use of the Risk Parity concept: a portfolio considered Risk Partity would be as follows:
40%: long-term projects
30%: Stocks market
15%: into short-term projects
15%: spend investing in artifacts (gold, silver, goods, ..)
Yield Farming 2.0
– Applying Risk Parity in yield farming
– Formation Fi’s Risk Parity Protocol is a platform for chain-agnostic Profit management. Yield-farming platform is promoted by Risk management strategy is based on the concept of Risk Parity. That means it will work in an automated, transparent way that can be adjusted to suit the level of risk by everyone and will not be bound by any string
– Through Formation Fi, users will choose the right level of risk, accompanied by a certain investment determined by the algorithm in the top reserve currencies such as BTC, ETH, USDT or BNB.
The protocol will then automatically configure and propose an agnostic portfolio of productivity farming strategies, tailor-made for the user and designed to compensate for the risks associated with both up and down cycles.
– Another good thing about Formation Fi is that it uses a small lever to drive mining while maintaining optimization.
Formation Fi is built on the following principles:
– Low Transaction Costs
– Radical Simplification
– Investment over Speculation
– Communal Effort
– Long-Term Focus
– Constant Innovation and Safety
– Krzysztof Gagacki: Formation.FI Founder.
He is also the founder of Telemedika and IOVO
– Joshua Hong
– Okura Ikeda
– Edmond Truong
– Adam Kozłowski
– Anna Makowska
– Chris Beyma
– Ryan Jun
Formation.Fi has already published its development roadmap, along with a percentage of progress. Currently, the project is completed about 10% of the schedule and still in development progress.
More specifically, at the end of Q2 – 2021, they will:
+ Index Form Fixed Gamma
+ BSC Swap Smart Contract
+ BSC-ETH Bridge
+ Beta Launch
In Q3 2021: + Flash Strategies
+ Moonbeam Alpha Testnet
+ Polka Parachain Bridge
+ Heco Bridge
+ All chain Swap
In Q4 2021: + On-chain Governance
+ Governance DApp
+ F Cash Debit Card
+ F Cash App
+ Formation Chapter 2