On Solana Mainnet, Solfire Finance is now available. SOL, WETH, and WBTC covered calls on PsyOptions, USDT optimizer on ProjectLarix, USDC-collateralized SOL puts, and Fire Vaults are included in the BETA version.
Introduction of Protocol
Solfire Finance is a decentralized asset management tool that creates a DeFi portfolio for users based on certain crypto market parameters.
Solfire Finance provides a range of investment solutions spanning the risk spectrum, allowing customers to enjoy the best yield-generating possibilities on Solana while being completely passive. Solfire’s mission is to provide smart, long-lasting, and modular yield products that consumers can mix and match to get the exposure they want.
In order to accomplish this, its core product suite comprises automated vault methods and structured products, with plans to grow into more exotic product lines in the near future.
Vault Strategies
Fire Vault
Fire Vaults are vaults that employ an automated options selling method that generates weekly yield by writing out-of-the-money options and collecting premiums.
Because the idea of storing your assets into a vault and earning a yield on them, set-and-forget, Fire Vaults uses the Vault terminology.
Users can simply put their assets into a smart contract, which will then begin to operate a specific options strategy on their behalf. By spreading the gas expenses across all vault depositors, solves the majority of the gas problems. The vault will perform 3–4 transactions per week for thousands of users at once, rather than 3–4 transactions per week per user. This simplifies and reduces the cost of using these Fire Vaults: deposit, wait for yields, and withdraw.
Covered Call strategy
The covered call strategy is a one-of-a-kind options strategy in which you generate a profit by selling an asset’s potential gain. For example, selling a $25k call option can pay you 2% in yield if you are ready to give up possible upside if ETH rises above $25k before the end of the year. This is more than ten times the return you can get by giving ETH on Compound.
In the unlikely event that ETH reaches $30k, you will have lost $5k, but you will still be well ahead in USD terms — it is a win-win situation for you because you only risk being exercised if ETH reaches $30k.
Project Tokenomics
Token Detail
Token name: Fire Token
Blockchain: Solana
Total Supply: 100,000,000 FIRE
Token Standard: SPL
Ticker: $FIRE
Token Distribution
Mining Reserve: 60,000,000
Partnership & Ecosystem: 10,000,000
Liquidity: 10,000,000
Team: 17,500,000
Private Funding: 2,500,000
Token Use Cases
On Solfire, users will be able to compare several investment funds offered by third-party managers based on clear, intelligible, and objective parameters to discover the one that best meets their risk profile. They can then choose from a variety of funds or vehicles that specialize in various areas of the market (different token portfolios, NFTs, synthetic assets, or different balances).
Buyback and Burn
The team will undertake a weekly buy-back and burn plan, with 2% of all investment portfolios’ weekly trading volume and 50% of the vault fee going toward the buy-back and burn of FIRE.
Roadmap
Q1 2022
- More integrations
- Portfolio Manager UI
- CEX Listings
- Institutional platform (structured products for institutions)
- Partnership with Sypool/ other derivative markets
- AcceleRaytor Optimizer Vault
Q2 2022
- Improve algorithm for price selection
- Chainlink oracle integration
- Multi-language support
- More portfolio options
Q3 2022
- FIRE NFT
- NFT Integration
- Lending allowing leveraged position for portfolios
- Portfolio Management Competition
Q4 2022
- Go multi-chain
- More partnerships
- Olympus PRO adoption
Learn More
Telegram: https://t.me/solfirefinance
Twitter: https://twitter.com/Solfirefinance
GitHub: https://github.com/SolfireFinance
Medium: https://solfirefinance.medium.com
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