Bringing Yield Futures and FNFTs to the Shimmer Network
Resonate Finance, a Yield Futures Protocol, joins the Touchpoint Open Builders Program to introduce the power of financial NFTs (FNFT) technology to the Shimmer network. With an exploding DeFi sector, Resonate Finance wields a first-mover advantage into an early-stage and growth-promising ecosystem built on Shimmer, the L1 staging and validation network of the IOTA distributed ledger technology.
Resonate Finance introduces itself
Resonate Finance wants to revolutionize staking and treasury management. Since the inception of DeFi, market participants and protocols have faced the same issues. For users, locking up tokens for yield meant losing liquidity and patiently waiting for your rewards to accrue. For protocols, there wasn’t a way to utilize your treasury to generate yield without diluting users. Resonate brings these together and provides a mutually beneficial solution.
Users of Resonate Finance get access to yield that’s paid out upfront while retaining the ability to sell their locked position at any point. These FNFTs can be sold on any NFT marketplace, and by buying/selling your locked positions in this manner, the protocol’s underlying token price and locked liquidity are completely unaffected.
Resonate Finance’s key motivation is creating a more sustainable and prosperous DeFi ecosystem. We’re a tight-knit team of 12, with a long list of partners, all of which are available on our website). Our journey began by creating Revest, our proprietary FNFT issuance system. Resonate is the next iteration of the FNFT technology stack, bringing forth the infrastructure required to effectively facilitate Yield Futures as a market.
For short-term focused market participants, Resonate brings several benefits, including:
- Upfront, guaranteed payouts for staking or providing liquidity.
Staked or liquidity pool positions are liquid throughout lockup as a result of our FNFT system.
- Guarantee your interest rate.
- Protect your portfolio, by taking upfront payments to hedge against future market volatility.
For long-term focused market participants and DAOs or protocols, benefits include:
- By offering upfront yield, mercenary capital can be effectively incentivized to act in the best interest of the protocol and its community. Previously, these mercenary users would pull liquidity and dump their tokens as narratives or market conditions shifted. Now, these participants can receive their yield upfront in exchange for locking over the agreed period - still retaining the ability to sell their position at any point, but without harming the protocol's liquidity or token price. These previously mercenary participants have instead acted in the best interests of the protocols community, in order to satisfy their own short-term financial interests.
- Incentivize lockups to offset your existing emissions schedule and reduce sell pressure.
- Multiply the earning power of your stables by utilizing the leased capital of issuers.
- Protocol treasuries can pay upfront to secure long-term income, replenish their native token, or perform a synthetic swap and diversify their holdings.
Resonate Finance currently stands alone; although there have been previous attempts to create functionally similar systems, they used ERC20s rather than NFTs. Due to the previous iterations being built upon the ERC20 standard, these systems were not able to effectively separate principal and interest while accounting for varying rolling maturities. Previously, these holders would face theta decay as all positions approached maturity at the same time, resulting in a prisoner’s dilemma. By using Resonate and FNFTs, positions can be locked under any conditions verifiable by an oracle with any timeframe – negating the previously experienced theta decay and prisoners dilemma.
Resonate Finance will be a pioneer, bringing FNFTs and Yield Futures to the Shimmer network. We launched with a band of deployment partners earlier this month. Our next step, simply, is expansion.”
We’re looking forward to seeing how Resonate Finance establishes a yield futures market leveraging the unique features of the Shimmer network. If you’re curious to learn more, we recommend starting with Revest Finance’s extensive library of articles on Medium and following them on Twitter.
Resonate Finance joins the Touchpoint Open Builders Program, offering participants a community of like-minded builders, direct access to funding, experts, knowledge, and general support to launch and scale the next generation of decentralized applications and infrastructure on the Shimmer networks. You can learn more about how Touchpoint works and how to become a part of it here.
Shimmer is an L1 innovation network providing the core building blocks for a scalable, modular multi-chain architecture. Similar to the IOTA network, Shimmer is built on a UTXO-based parallelized, directed acyclic graph (DAG), guaranteeing higher scalability than conventional Blockchains. At the same time, Shimmer ensures interoperability and composability of L2 smart contract chains, capable of connecting any type of L2 smart contract chain anchored to it. With its unique tokenization framework, Shimmer will become a multi-asset ledger for feeless minting and transfer of native assets without middlemen or crippling gas fees.
The native token of Shimmer is SMR, which serves as the network’s economic backbone, facilitating value transactions and interactions within the Shimmer ecosystem. Shimmer users use the SMR token to launch new DeFi applications, DEXs, NFTs, DAOs, and other dApps.
Every project that participates in Touchpoint is given the opportunity to introduce itself in its own words. Statements made by projects are not verified by Touchpoint, Shimmer, Assembly, or the IOTA Foundation and should not be taken as an endorsement. Individuals are advised to always conduct their own due diligence when engaging with any crypto projects.
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