Francium — a platform providing Yield Strategies and Decentralized Strategy-Building Infrastructure
This article will introduce what Francium has provided and what it will release in the future.
Francium is a DeFi Strategy Platform on Solana. On Francium, you will find bespoke yield strategies and a decentralized strategy building infrastructure designed and built specially for you, DeFi users.
With the invention of AMM, Yield Farming and Liquidity Mining, DeFi users have come across the underlying risks of impermanent losses, and such LP risk exposure has become a concern. Moreover, a from market-making perspective, while order books are beneficial for CLOB DEX, such DEXs still lack useful trading & analysis tools, which are often offered by centralized exchanges (CEXs). In addition to that, portfolio management tools like target selection (assets) and position management are also essential tools which are often missing from DEXs.
Taking these factors into consideration, we have provided a sum of Correlate Assets LP and Perpetual/Option Hedged Farming to solve some of the pain points. Our extension encompasses the addition of All Crypto Yield Targets (Yield Farming, Crypto Native assets, and Synthetic Assets) and Flourishing Trading Tools (Financial instruments, DeFi Composability, Classic Trading System, AI-based Trading System).
Francium Protocol’s vision is to allow our users to apply any strategies to any targets and connect DeFi developers and users in a decentralized manner. We believe that excellent income opportunities will be generated, and both users and strategy providers will share the benefits.
Francium provides strategies and self-introduced functions that could help users earn more profit and bear less loss. The following are the strategies that have been or will be provided to users:
1. Crypto-Native Strategy
Crypto-Native Strategy focuses on yield farming and capital efficiency. With leverage farming, DeFi users can borrow assets from lending pools to maximize their gains.
It’s possible to setup a Long or Short position in leveraged yield farming. When the price rises, borrowing a stable asset earns more profit, which is termed as “long position”. When the price drops, borrowing a fluctuant asset with a leverage ratio of more than 2x would get a profit , which is known as a “ short position”.
Apart from long/short position, Hedging Framing could offer a relatively predictable strategy. For instance, if you’re certain that the price of SOL won’t change beyond 25% in 3 days, you can open a position that reflects your view accordingly. Whatever customization you are looking for, Francium will be able to provide a well-designed strategy accordingly.
2. DeFi Composability Strategy
As the name is self-explanatory, we call it the DeFi Composability Strategy as it consists of compose-able functions. The strategy integrates DeFi protocols that help us achieve an integrated farming strategy. It performs multiple operations, such as lending and DEX, in one place.
To illustrate, SOL holders can deposit SOL in the lending protocol to borrow USDC. The borrowed USDC can be used to farm on other protocols such as Saber. We will automatically collect those yields and sell them on DEX. Users can add those profits as collateral to reduce the liquidation risk, or reinvest them to increase APY. Furthermore, DeFi users will be able to set conditions that can be triggered upon certain criteria or parameters.
The whole process will be integrated into one strategy and automatically executed by the Francium Protocol. DeFi users just need to start with a single click. In addition, DeFi users could also set parameters and Francium’s automation module would trigger these for the users.
The strategy not only saves time but also directs the money flow to the right place for the whole ecosystem and makes many high-yield opportunities possible for users.
3. Trading System-Based Strategy
After years of development, the traditional trading market has accumulated a host of excellent strategies. These strategies can trade various asset types and assets at different growth stages, and make profits from them. When deployed on fast-growing crypto assets, these accumulated excellent trading strategies, or some advanced versions based on them (such as AI-enabled), would provide competitive performance.
The possibilities of which assets are suited for high-frequency short-term trading and which are suitable for trend analysis can uncover a multitude of yield opportunities that will appeal to users.
The team and backers of Francium have a wealth of experience in trading systems. We will work with partners and the community to present these opportunities for users to choose from.
Strategy Building Infrastructure
Francium is a DeFi strategy platform. In addition to directly providing the aforementioned strategies, Francium will also integrate financial tools, provide automation, and enrich the target, in order to help the community and traders in implementing strategies.
1. Financial Instruments
Both DeFi and traditional strategies need a series of financial instruments to help implement them. Francium will integrate these basic modules to help users implement various strategies.
Leverage is the core part of finance. Francium has established its own liquidity provision protocol and is also actively introducing protocol cooperation to provide margin for strategies.
Moreover, many strategies require options and futures to achieve short position, hedging and other objectives. There are many platforms on Solana that provide these functions, and our protocol will combine these functions for strategy building.
The emergence of Francium Protocol also provides a scenario for the order system with controllable cost of Serum to give full play to its value and revitalizes Solana’s DeFi protocol.
Take the simple MA strategy in the decentralized scenario as an example: the price change of the assets needs to be tracked and calculated off-chain, and then triggered to call on-chain contracts based on the trading system’s design.
Execution of trading strategies rely on that the data is calculated and signals are trigger correctly. Trusted off-chain bots are required to execute and triggered the relevant functions in this scenario. Extending to more complex scenarios, Francium’s strategy bot will provide off-chain calculations and data input, Automatic Trading Strategy, Condition setting and trigger, LP Position Management, take profit, Stop-loss, and Yield Collection & Compounding.
3. Enrich Targets
High yield opportunities come not only from excellent strategic algorithms, but also from platforms that provide corresponding targets and financial instruments. Strategy developers will be able to invest in various on-chain/off-chain assets and corresponding derivatives directly on the Francium platform. The protocol will also make use of rich Oracle data to calculate the value of these assets or assist in security inspection.
4. Visual Tools
There is a certain threshold for the creation of strategies. In order to reduce the threshold for strategy creation and let developers focus on the strategy logic itself, Francium will create a visual and, drag-and-drop strategy creation toolbox to cooperate with the basic strategy module, so that users can implement strategies quickly and conveniently.
Milestone 1: Leveraged Yield Farming; Smart Farming Strategy (05.2021–12.2021)
Milestone 2: Well-known strategies; Automation (1.2022–06.2022)
Milestone 3: Enrich Targets; Visual Tools (07.2022–12.2022)
Milestone 4: Modular components; Build strategy community (01.2023 — )
The beta version of Francium was launched on Solana Main-net at the end of July, and there is more than $400M earning yield with Francium.
- Leveraged Yield Farming
Francium is offering both lending and farming pools now.
Users can farm with 3 times leverage to get a higher APR. The position could be opened with a low stop-loss threshold to reduce the risk brought by leverage.
A financial instrument known as stop-loss is available in Francium aiming to prevent DeFi users from suffering a loss more than they can bear.
Framing Strategy — Delta-Neutral: The strategy takes a long and short position in an asset simultaneously to minimize the effect on your portfolio when the underlying asset’s price moves. With this delta-neutral strategy, you can expect a higher capital utilization rate and profit. Click here to get more details.
You can find the released farming strategies here.
- Yield Farming Calculator
Francium has also developed a neat tool to help calculate the profit and loss in different kinds of position placements. Users could visit here to have a try.
Users can deposit tokens into lending pools on Francium to get interest. The APR of lending pools on Francium is higher than most of the lending protocols because the utilization of funds in these pools is high most of the time.
Goto https://francium.io/app have a try.
- A joint Grant from Serum and Solana
- 2021 Solana Hackathon
a. First runner-up place in Asia
b. Kin Sponsorship Award
c. Community Quadratic Voting — Top 5 Most Popular Project
With outstanding innovation, infrastructure, and front-end design, Francium Protocol managed to emerge as the First Runner-Up for Solana Season Hackathon 2021 in the East Asia category and also clinch the Kin Award, generously handed out to creative projects which the Kin Foundation sees great potential synergy in. On top of that, Francium Protocol was also one of the top 5 most popular projects, as voted by the community.
Previously, we have shared with the community several honorable mentions that Francium has attained.