This is a guide on how to buy SFI from Saffron Finance, a DeFi token.
What is Saffron Finance?
Saffron Finance is a decentralized finance aka DeFi product which is built for investors with varying risk appetite. The product accomplishes this by creating various tranches of risk for investors. Different tranches have different risk from the same underlying pool of returns. The “higher quality” risk tranches get first priority for returns and cash flows but have a limited upside, whereas the “lower quality” risky tranches get last priority but with higher potential upside.
If this sounds similar to collateralized loan obligations or CLOs, infamous for their role in the 2008 financial crisis, then well that’s because this is. The product is, in fact, similar to Barn Bridge and BOND token. It seems like tranches of varying risks is the new hot thing in the DeFi world. It remains to be seen if there is enough investor demand for these products.
In the meantime, projects like Barn Bridge and Saffron Finance are relying on the good old liquidity mining programs to kickstart adoption. They hope organic adoption will follow. We are yet to see the story pan out, which makes sense. After all, these projects are barely a few months old.
If the broader DeFi movement takes off with investors, tranches and pooled risk is a reasonable bet. After all, different investors have different risk appetites and time horizons. Someone may simply be in stablecoins for a few weeks waiting to deploy capital and want a safe return for that time horizon. Others might want to gain an aggressive risk exposure with higher return potential.
Buy SFI token (or earn SFI)
In the meantime, you can earn SFI or simply buy SFI to gain exposure to this project. As of this writing, Saffron Finance has an active liquidity mining program. Currently, there are two pools – DAI and Uniswap liquidity pool. A third USDT pool is planned to be live soon.
If you do not want to participate in this program, you can simply buy SFI from Uniswap. This is the link to see the historic SFI liquidity information and here is the direct link to Uniswap to buy SFI.
The liquidity pool on Uniswap is an ETH liquidity pool. If you want to exchange a non-ETH token into SFI, say LINK or YFI or AAVE, then first convert your token to ETH on an aggregator like 1inch so you get the best trade execution, then come back to Uniswap to make the trade with your ETH.
If you’re coming from the non-ETH world, such as Bitcoin, convert your Bitcoin into ETH first via Binance or Coinbase or another traditional centralized exchange, withdraw your ETH to MetaMask or another wallet, and then trade on Uniswap as described above.