Eli5DeFi Profile picture
The Web3 Research in Visual | All Posts NFA + DYOR | TG Channel ➡️ https://t.co/NquSvtqawK

Feb 11, 2023, 20 tweets

#GM!
1/ In the follow-up section of the @FactorDAO visual guide, we examine the inner workings of the Factor's ERC-4626 vault mechanism and uncover its role as a liquidity middleware and supporting structure for #DeFi protocols.

#Arbitrum #RealYield $FCTR

2/ Before we move forward with the topic, you can familiarize yourself with @FactorDAO in our previous publication.

3/ Please note that this thread merely aims to share our understanding of the topic, and should not be taken as financial advice. We are also part of
@FactorDAO team and as objectively as this thread was created there might be some bias involved.

4/ @FactorDAO 's vault can be described as a factory, and each piece of machinery represents the assets or strategies that harmoniously produce perpetual output (profit) for the owners (vault creators and investors).

5/ Vaults in Factor are mainly divided into two types: - Passive: portfolio rebalances mechanism
- Active Vaults: direct asset trading inside the vault
All of the vaults are non-custodial, so the vault creators cannot steal the assets inside the vault.

6/Assets in the passive-vault must have high liquidity to ensure the rebalancing can be done without any liquidity issues. This is the in-depth detail on the passive vault mechanism.

7/ In the Active vault, the asset must meet the liquidity requirements to be traded. Here is the in-depth detail on the active vault mechanism.

8/ Factor Vault or The Factory is not just a simple vault where people can manage their assets and participate. The aim is to create a vault that is fully composable with the Factor Ecosystem and other #DeFi protocols.

9/ The composable nature of vaults will open up a new realm beyond asset management. Vaults serve as the hub for liquidity between the protocol and the users, enabling trustless, permissionless, and composable liquidity middleware.

10/ @FactorDAO mission to become a liquidity hub requires patience, intensive development, research, and reiteration. That is why @FactorDAO divided its vault creation into four phases
- Genesis
- Partners
- Creation
- Cross-chain

11/ @FactorDAO also have different unique selling points compared to other DeFi project, you can check in our previous post here:

12/ #Omake! we also prepared the audio-visual format for @FactorDAO thread, please put your 🔊on to tune in!
cc: @CrossChainAlex, @Kurapika_DAO, @LouisCooper_, @coincatalysts, @owklama, @yanzero_

🎵 - Dusty Dusk - Turntable Tale
epidemicsound.com/track/6DyoyNFo…

13/ To understand how @FactorDAO integrate any protocol in their product, you can check in this thread:

#Arbitrum #RealYield #DeFi #BlueChip $FCTR

14/ To learn more about @FactorDAO and $FCTR:
🌐 Website: factor.fi
📑 Whitepaper; notion.so/Whitepaper-d25…
📒 Public Notion: factorlaunch.notion.site/Factor-DAO-d1b…
📺 YouTube:
🐦 Twitter: @FactorDAO
👾 Discord: discord.gg/factor

15/ @FactorDAO native tokens $FCTR will launch on 20th February '23 on @CamelotDEX in @arbitrum with price discovery mechanism, no whitelist or presale. See this video to get more details on how the mechanism works and post-launch information.

20/ If you love our thread, please follow us and @FactorDAO. Also don't forget to share, like and retweet to support us!

#DeFi #BlueChip #RealYield #Hyperstructure #Arbitrum #Ethereum $ETH $ARBI $FCTR

Share this Scrolly Tale with your friends.

A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.

Keep scrolling