SolanaDaily.com hosts Solfire Finance: Asset management with diversified portfolio on @solana
SolanaDaily – Admin: Hello and welcome, @kylewebber How are you today? 😀
Agent Zero: Feeling great! Thanks for hosting!
SolanaDaily – Admin: Thanks for joining with us today. Ready to start our AMA?
Agent Zero: Yep Let’s do it!
Q1: What is Solfire Protocol and how does it add value to the Solana Ecosystem? Background of the developing team?
Agent Zero: Hello, I am Kyle, founder and CEO of Solfire Protocol. As a CFA graduate, I spent the past 10 years developing financial derivatives products at top investment banks in Singapore and London. My team and I started developing dapps on Solana in October 2020. An alumnus of HEC, our CTO Saeed has PhD in Financial engineering and extensive background developing Fintech and DeFi protocols. He was working with BAO Finance and began exploring Solana in 2019. We formed a team in 2020 and decided to do something great so here we are with Solfire Finance.
Solfire Finance is a decentralized application focusing on asset management by creating a DeFi portfolio for users based on certain metrics of the crypto market.
Solfire Finance offers a suite of investment products across the risk spectrum, enabling users to passively access the best yield-generating opportunities on Solana. Solfire’s goal is to offer sophisticated, sustainable, and composable yield products which users can mix and match to produce their desired exposure.
Although the Solana ecosystem is filled with quality projects, DeFi users are still looking for projects with higher yields. One of the main problems is that there’s a lack of asset management tools that optimizes the user’s portfolio with steady yield. In traditional finance, the trading volume of synthetic assets could exceed that of the spot market by 100x. So we found this opportunity in DeFi. Solfire Protocol takes care of helping users manage their portfolio so that they can simply earn while they’re sleeping.
SolanaDaily – Admin: Cool! Thanks for your detailed answer.
Q2: Why did the team choose to deploy Solfire Protocol on Solana?
Agent Zero: Solana offers exceptional TPS compared to other chains. With over 60,000 TPS, protocols will be able to use untapped potential to achieve greater yield even in times of high volatility. Solfire leverages just that, to be able to complete a series of complicated transactions such as option trading and leverage lending in seconds so that we can bring higher yields over time to our users.
SOL will surpass ETH in 2 years!
Q3: How does the BETA version of Solfire Protocol work?
Agent Zero: The BETA version of Solfire will include 9 vaults in total with separate strategies, including covered calls, put selling, lending optimizer and simple staking. For options-related vaults, we will select strike prices algorithmically, and then sell those options to the corresponding Serum market for a premium. Then if the actual price is appropriate the vault will earn the full value, otherwise the options will expire worthless.
Read more about the strategies here: https://docs.solfire.finance/protocol/vault-strategies
Q4: What is the competitive advantage of Solfire over other protocols of similar type?
Agent Zero: For me, the basic principles for getting an edge in DeFi are:
- Efficient utilization of funds (leverages, low cost for lending/borrowing, liquid assets)
- Low transaction costs
- High performance (High TPS) so that user experience is not affected even under frequent transactions.
- A variety of synthetic assets (derivatives, securities, ETF funds, etc.)
Solana network provides us the natural advantage of 2 and 3. Solfire provides users with 1 and 4 that other protocols don’t have yet. Additionally, users will be able to create even their own assets for the portfolio in the future (with governance).
SolanaDaily – Admin: I believe the protocol will bring a better experience to the users.
Q5: What is the utility of FIRE token?
Agent Zero: First of all, governance. FIRE will be used towards a variety of governance matters including the Fire Improvement Proposal, adding/deleting certain objects of trading, adjusting certain metrics of the protocol, and how Solfire Protocol should award long-term holders.
You may also use FIRE to buy NFTs in the future.
SolanaDaily – Admin: So excited! We are looking forward to latest news.
Q6: What’s the tokenomics of FIRE?
Agent Zero: Ah the real deal that y’all really care about.
With a total supply fixed at 100M, FIRE token has a deflationary model. 60M will be distributed to users for mining incentives.
The team will perform a weekly buy-back and burn schedule where 2% of the weekly trading volume of all investment portfolios and 50% from the vault fee will be used towards the buy-back and burn of FIRE.
By doing so, we wanna ensure that the value of FIRE directly reflects how Solfire performs as a protocol, rather than having a token that’s highly volatile by taking advantage of the market. We advocate everyone to become friend with time instead of money. We want to reward long-term holders that believe in how Solfire works as a revolutionary protocol.
Q7: What’s the roadmap and vision of Solfire Protocol?
Agent Zero: You can read about our preliminary roadmap here: https://docs.solfire.finance/roadmap
This is just a beginning and we will definitely add more to our roadmap in the future.
Solfire Finance strives to be the most community-oriented DeFi protocol. What knowledge we do not possess, we seek and reward those within the community that do. We are built by the community for the community.
Q8: Where can we find out more about Solfire on social media?
Agent Zero: Stay tuned on our social media for the latest of Solfire!
Our social media:
Telegram: https://t.me/solfirefinance
Twitter: https://twitter.com/Solfirefinance
Medium: https://solfirefinance.medium.com
Docs: https://docs.solfire.finance/
Of course stay tuned on Solana Daily on Twitter as well! We’ll be up there!
SolanaDaily – Admin: With this we are now at the end of our AMA session with Solfire.
Time for wrapping up, any last words you would like to say to our community? @kylewebber
Agent Zero: Hop into our telegram for the latest of Solfire.
Thanks for hosting!
SolanaDaily – Admin: It was a pleasure having you guys @kylewebber
Thank you so much for spending time with our community & all the very best for Solfire.
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