What Is @friktion_labs? How To Start Farming On @solana's Largest Structured Product Protocol
$SOL #Solana #Friktion
1/10 Friktion prides itself to be an all-in-one portfolio manager that makes crypto-asset management easy. With a click of a button, the volt would automatically employ different strategies to help the user maximize return while managing risks.
2/10 Solana’s first structured product protocol
Volts are the fundamental building blocks of Friktion. The volts are designed to make it easy for just about anyone to participate in yield generation. Each individual volt is specially crafted with its own yield strategies.
3/10 There are four volts each with its own objective:
I. Income generation
II. Sustainable stable
III. Volatiltiy yield
IV. Hedge impermanent loss
The first is the main volt, and focuses on income generation through covered calls, a common strategy used by DeFi vaults.
4/10 Currently, it supports 11 different assets for its covered calls strategy from the traditional blue-chip, $ETH to the hottest Layer 1 of 2021, $LUNA.
According to @DefiLlama, Friktion is currently Solana’s largest structured product protocol with over US$115 million in TVL.
5/10 Sustainable money lego yield
The beauty of DeFi composability is that it enables different DeFi protocols to stack together like a lego set. Users can stake $SOL on the @MarinadeFinance platform to earn an APY of 6.19%. In return, users will get $mSOL as liquidity.
6/10 Here is where Friktion comes into play. You can stake your $mSOL into the $mSOL covered call volt for an APY of 41.4%.
What this means is that you can stack Marinade APY of 6.19% on top of the volt covered call APY of 41.4%.
7/10 Top-tier VC investors
Friktion is backed by some most established firms in the crypto space, which include industry-leading derivatives trader & market maker, @QCPCapital and crypto research firm, @Delphi_Digital Ventures.
Recently it made headlines for raising US$5.5m.
8/10 To kick start your journey into the world of Friktion, you first would have to connect your trust wallet. Currently, Friktion only supports 4 different trust wallets: @Ledger, @phantom, @solflare_wallet and @solletio.
9/10 At the time of writing, users will only have a choice between Volt #01 or Volt #02. Volt #03 and #04 is yet to be released. Some important information to note is the last traded option call price, the date and fees. Enter the amount of $SOL you want to stake in the vault.
10/10 After you click deposit $SOL, your trust wallet would prompt you to accept the transaction. Once the transaction is approved, you just have to sit back and let Friktion work its magic. Happy farming!
Read our full article on @friktion_labs here chaindebrief.com/what-is-frikti…
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