SIL Finance Ushers In The New Era of DeFi
Sister In Law, ticker name “SIL” is a decentralized passive investment platform based on smart contracts, focusing on providing users with DeFi financial services. SIL provides dual currency liquidity for token Swaps, automatic LP matching, and automatic compound interest. According to factors such as ARR (Annualized Rate of Return), coefficient, financial management cycle, etc., it automatically selects and configures products that are most in line with the interests of users, allowing complex liquidity mining become a joint construction of currency participants, and the management of the platform is entrusted to all SIL holders.
What are the flaws of YFI (YEARN)?
Based on observations, Yearn may have the following problems:
- Single currency mining is not sustainable for Swap
- No real liquidity provided
- CRV does not have so many stablecoin swap needs if it was not for DeFi
SIL Product features:
- Dual currency SIL Vault
- Each user only needs to stake currency to join LP pool. Currently dual currency APY is generally higher than single currency mining.
- SIL will bring real liquidity to partnered Swaps. Not a simple matryoshka doll mechanism.
- There is no need to exchange for another coin for mining, each party of the paired LP bears one coin’s impermanent loss for free, but obtains high annualized earnings.
- Compound interest model
- Deposit token into SIL and it will be paired into LP, stake LP to mining contract CLAIM earnings
- CLAIM earnings are exchanged for 2 coins to form a new LP and re-stake. And the newly added LP will be distributed to the current LP pool users according to the share.
- Token automatic matching LP
- When the user adds the token to SIL, it will be automatically paired to LP for mining. At the same time, the user holds half of the LP’s equity (that is, the LP gains after the burn, the corresponding token gains), and can choose to withdraw the token from the LP at any time.
- The matching mechanism is a three-tier model to ensure that the first entrant has a superior queue position.
- Token pairing earnings: Token paired as LP, there will be two levels of earnings.
- As an LP liquidity provider, receive transaction fee earnings of automatic market making (for example, Uniswap provides 0.03% transaction fee)
- LP stakes for mining, swap the mined token (UNI, SUSHI, etc.), re-form LP and distribute to users, enjoying passive compound interest growth
For example: Adding USDT and paired with ETH in the pool as LP, and the user has the ownership of this LP (USDT part), and at the same time has the earnings of LP transaction fees, as well as the compound interest earnings of LP. When the user chooses to exit, the LP releases more USDT depending on the compounded interest and returns it to the user. The corresponding ETH will re-enter the pairing queue to prepare for the next pairing.
- SIL distribution (no pre-mining)
- When the user adds a token into the SIL contract, the SIL token will be distributed according to the share of the added token. Even if the pairing is not successful, there will still be SIL Token earnings. SIL token earnings will be splitted equally in the LP’s Token0/Token1 deposit queue.
- Initial roadmap
- sil.finance will always support UNI token and SUSHI token
- Midstage roadmap
- sil.finance will be experimenting a batch of pools to reduce impermanent losses
- DeFi loan settlement function integration
- DeFi+CeFi arbitrage strategy product, which will be automatically executed by contracts
- Business model such as “CompDelegator”, which aggregates the participants’ assets into a pool and coordinates the overall strategy.
- The automatic asset management tool/safe is the entry product of the DEFI world, and SIL Finance hopes to automatically use it as PayPal or MatrixPort.
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