1/ Let's talk about Impermanent Loss and how it can be solved using tranches and segregating returns between parties.
⚠️𝐂𝐥𝐚𝐢𝐦𝐬 𝐭𝐡𝐢𝐬 𝐩𝐨𝐬𝐭 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐬 𝐀𝐥𝐩𝐡𝐚 𝐚𝐫𝐞 𝐮𝐧𝐝𝐢𝐬𝐩𝐮𝐭𝐞𝐝.
2/ @saffronfinance_ is building a tranche ecosystem that is bifurcating yields between high-risk/high-return and low-risk/low return tranches. The initial products were aimed at interest generation. High-risk tranche earns 10x interest of low tranche, in exchange for insuring the
3/ principal of the low-risk tranche if there is an adverse event in one of the underlying lending/yield aggregating platforms. Now, thinking outside the box and expanding a bit this can be applied to insurance, more specifically IL insurance.
4/ A low-risk tranche (LPs) can deposit their LP tokens (Uniswap, Sushiswap, etc.) into this tranche in exchange for a portion of their LP rewards & trading fees. A high-risk/high-yield tranche contains both of the LP tokens and covers the IL of the low-risk tranche.
5/ If the low-risk tranche has IL, the tokens are taken out from the high-yield tranche. The low-risk tranche can now be a LP and earn at least 12% APY with *zero* risk of IL. The high-yield tranche will receive elevated returns from the LP rewards + trading fees obtained from
