By Beaver Finance is launching BVER token. What about KUBE?
Beaver Finance is a Single-Asset Intelligent Yield Enhancing platform. It is also the first Defi company trying to integrate Liquidity Mining. The team plans to do that with the Option-based cutting-edge hedging solution for Impermanent Loss.
Impermanent Loss has lately become a major concern for liquidity providers. It continues to induce volatility in LP returns, especially for assets with diverging price trends. Decentralized market-making continues to move towards concentrated liquidity. As a result, the effects of impermanent loss are even more amplified. The Beaver team decided to answer that concern. Its protocol comprises several modular components which allow active, non-custodial, and effective management of impermanent loss.
Furthermore, the company’s Asset Allocation Engine dynamically pairs equal-valued tokens from LP pools by using algorithms for supplying liquidity on major DEXs. The latter enables customers to automatically gain the high yields of dual-token LP enhancing in single-token staking mode. Asteria Finance Lab supports Beaver’s Impermanent Loss Hedging Engine. This engine protects LP assets by enhancing positions by constructing European Option Portfolios for hedging against IL.
The company provides two types of yield strategies: IL Hedger Mining and Liquidity Provider Mining, both of which only require single-sided staking on this platform. The LP and ILH features and functions are different.
Beaver Finance plans to support currency pairs with high yields and optimal risk mitigation. On LP, customers will be able to choose any token pairs and deposit a single asset of their choice, supported by the platform, into Beaver LP pools. They can leave the rest of the operations up to Beaver’s algorithm, including LP supplying, token pairing, staking, compounding, and reward accrual. On the other hand, Impermanent Loss Hedger (ILH) will use the capital within its pools to hedge possible Impermanent Loss of LP mining positions to almost zero.
What innovations does this platform offer?
Beaver’s two strategies complement each other, providing much higher single-token yields. At the same time, the platform minimizes the infamous Impermanent Loss of liquidity mining. Moreover, multiple advanced algorithms applied in two sections of asset pools significantly elevate capital efficiency, along with return rate and system solidity.
This company adopts a simple and intuitive UI. It wants to ensure that all user classes will be able to easily utilize its novel approaches to liquidity mining and impermanent loss hedging. A user-centric platform will eliminate the most prohibitive factors between mainstream users and Defi. Besides, the team can easily upgrade this protocol to integrate the new Defi protocols and universally interact with them to maximize yields in the future.
The platform also leverages the Options Portfolio Hedging Module. Developed by Asteria Finance Lab, this module allows the company to provide IL hedgers returns from the options market, IL minimized to almost zero, and protection from volatility on their principal assets.
The team has been testing Beaver’s impermanent loss for its efficiency through the years. The results are more than promising. The company’s innovation eliminates principal loss for Impermanent loss Hedging (ILH) pools while also realizing optimized stable returns.
Beaver designed the Staking module to incentivize users’ dedication and support for the protocol. Compared to the dried-out single staking APY on the rest of Defi, the platform’s dynamic asset allocation engine will optimize cost and operational efficiency, along with maximizing yields.
Enhanced security is another great benefit. Beaver plans to implement a mutual exclusion lock mechanism to synchronize threads. Besides, it will sterilize thread execution, and preserve the single-threaded code from reentrancy attacks. It will also consider implementing Open Zeppelin’s reentrancy guard contract in the future to reinforce code security and integrity.
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