Saffron Finance has been accepted into the N3 Early Adoption Program, according to Neo Global Development. Saffron is a peer-to-peer risk management platform that will distribute yields based on liquidity deposits in specific tranches and provides a yield-generating insurance fund. NGD will provide funding, technical support, and other incubation opportunities to Saffron as part of the program.
Saffron provides its users with a variety of risk profiles for its supported liquidity pools. Depositors can choose between three tranches: senior, junior, and fee. If an event necessitates the coverage of funds, such as a mass liquidation, assets from the junior tranche and insurance fund will cover the senior tranche first, followed by the junior tranche. In exchange for their lower coverage priority, junior tranche deposits receive a larger portion of the platform’s earnings.
Spice (SFI), the Saffron ecosystem’s governance token, is required for liquidity providers to stake in order to gain access to higher-yield tranches. Along with access to tranches, SFI is used to vote on Saffron protocol governance proposals. When Saffron Finance v2 is released, SFI stakes will also receive fees from protocol swapping and staking.
“Through Saffron, it will be possible to transfer billions of dollars of income financial products from centralized financial institutions to a decentralized, open-source network,” said NGD Head of Eco Growth John Wang. This one-of-a-kind ‘bridging’ role is critical for the entire Neo N3 ecosystem.”
Saffron plans to launch a liquidity mining service on Flamingo Finance in the near future. FLM tokens added to the Saffron pool will be deployed to Flamingo and will generate interest.
In the N3 Early Adoption Program, Saffron Finance joins Defina Finance, Rentfuse, TranslateMe, Humswap, and TOTHEMOON.
Details on the N3 Early Adoption Program
NGD’s Early Adoption Program has provided grants totaling $10 million to qualified teams and individuals. The program’s goal is to boost overall participation in the Neo ecosystem. NGD anticipates that new ecosystem entrants based on Neo N3 will be able to optimize the network through real-world use and testing. Finally, NGD believes the program will aid in the establishment of Neo N3’s infrastructure while also raising awareness.
The NGD team is looking for a wide range of dApp and product ideas, with a particular interest in the following types of projects:
The Neo N3 MainNet infrastructure (i.e., browsers, compilers, middleware) NeoID, NeoFS, Oracle, and other Neo N3 Application layer core components are used in product development (i.e., DeFi, NFTs, and general dApps) Concepts with business applications that combine the physical and digital worlds (i.e., social media, e-commerce projects) Use cases involving regulations (i.e., payment and traditional financial digitization projects) More information about applying can be found on the neo.org website in the Eco Support section.