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Factor Part #03: The Liquidity Middleware

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3 years ago

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#GM! 1/ In the follow-up section of the @FactorDAO visual guide, we examine the inner workings of the Factor's ERC-4626 vault mechanism and uncover its role as a liquidity middleware and supporting structure for #DeFi protocols. #Arbitrum #RealYield $FCTR
2/ Before we move forward with the topic, you can familiarize yourself with @FactorDAO in our previous publication. twitter.com/eli5_defi/status/1620389794068180993?s=20&t=JrEuU12wrHBm1pQXoJ5R6g
3/ Please note that this thread merely aims to share our understanding of the topic, and should not be taken as financial advice. We are also part of @FactorDAO team and as objectively as this thread was created there might be some bias involved.
4/ @FactorDAO 's vault can be described as a factory, and each piece of machinery represents the assets or strategies that harmoniously produce perpetual output (profit) for the owners (vault creators and investors).
5/ Vaults in Factor are mainly divided into two types: - Passive: portfolio rebalances mechanism - Active Vaults: direct asset trading inside the vault All of the vaults are non-custodial, so the vault creators cannot steal the assets inside the vault.
6/Assets in the passive-vault must have high liquidity to ensure the rebalancing can be done without any liquidity issues. This is the in-depth detail on the passive vault mechanism.
7/ In the Active vault, the asset must meet the liquidity requirements to be traded. Here is the in-depth detail on the active vault mechanism.
8/ Factor Vault or The Factory is not just a simple vault where people can manage their assets and participate. The aim is to create a vault that is fully composable with the Factor Ecosystem and other #DeFi protocols.
9/ The composable nature of vaults will open up a new realm beyond asset management. Vaults serve as the hub for liquidity between the protocol and the users, enabling trustless, permissionless, and composable liquidity middleware.
10/ @FactorDAO mission to become a liquidity hub requires patience, intensive development, research, and reiteration. That is why @FactorDAO divided its vault creation into four phases - Genesis - Partners - Creation - Cross-chain
11/ @FactorDAO also have different unique selling points compared to other DeFi project, you can check in our previous post here: twitter.com/eli5_defi/status/1621860609200619520?s=20&t=JrEuU12wrHBm1pQXoJ5R6g
12/ #Omake! we also prepared the audio-visual format for @FactorDAO thread, please put your 🔊on to tune in! cc: @CrossChainAlex, @Kurapika_DAO, @LouisCooper_, @coincatalysts, @owklama, @yanzero_ 🎵 - Dusty Dusk - Turntable Tale epidemicsound.com/track/6DyoyNFo0q/
13/ To understand how @FactorDAO integrate any protocol in their product, you can check in this thread: #Arbitrum #RealYield #DeFi #BlueChip $FCTR twitter.com/FactorDAO/status/1621512158508113925?s=20&t=JrEuU12wrHBm1pQXoJ5R6g
14/ To learn more about @FactorDAO and $FCTR: 🌐 Website: factor.fi 📑 Whitepaper; notion.so/Whitepaper-d25b8a9d8d3341948c439038e387cf97 📒 Public Notion: factorlaunch.notion.site/Factor-DAO-d1b4c1b95df4470f9f8b6c1b475a8c7c 📺 YouTube: youtu.be/LGtdAmjT0c8 🐦 Twitter: @FactorDAO 👾 Discord: discord.gg/factor
15/ @FactorDAO native tokens $FCTR will launch on 20th February '23 on @CamelotDEX in @arbitrum with price discovery mechanism, no whitelist or presale. See this video to get more details on how the mechanism works and post-launch information.
16/ Tagged #RealYield seekers: @TheCryptoDog @milesdeutscher @OnChainWizard @SamuelXeus @Route2FI @thedefiedge @blocmatesdotcom @CryptoHayes @takegreenpill @0xthade @CryptoKaduna @MoonKing___ @crypto_condom @ThorHartvigsen @AstrologyCrypto @CroissantEth @andrewsaunders
17/ Tagged amazing #DeFi educator (1): @byChadManDan @jediblocmates @rektdiomedes @JiraiyaReal @NickDrakon @ReveloIntel @RiddlerDeFi @crypthoem @TheDeFinvestor @crypto_linn @archipelabro @launchy_ @Dynamo_Patrick @jake_pahor @CryptoDragonite @VirtualKenji @defi_mochi
18/ Amazing #DeFi educators (2): @phtevenstrong @DeFi_Made_Here @Prof_Crypto_B @thewolfofdefi @0xUnihax0r @defiprincess_ @DefiIgnas @DegenSensei @DeFi_Cheetah @TheDeFISaint @TheCoffeeBlock @ViktorDefi @SmallCapScience @ChadCaff
19/ Amazing #DeFi educators (3): @DeFiMinty @Slappjakke @DAdvisoor @burstingbagel @royalty_crypto @shitc0in @EricCryptoman @WinterSoldierxz @FishMarketAcad @Chinchillah_ @0xtindorr @ArbiAlpha @0xCrypto_doctor @Only1temmy @CoinSurveyor
20/ If you love our thread, please follow us and @FactorDAO. Also don't forget to share, like and retweet to support us! #DeFi #BlueChip #RealYield #Hyperstructure #Arbitrum #Ethereum $ETH $ARBI $FCTR twitter.com/eli5_defi/status/1624403153423855616?s=20&t=BX8JS3tekcp_rgHHKo5F9A
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Eli5DeFi

@eli5_defi

DeFi and Web3 Research in Visual