1/ ๐Ÿ‡ DeFi Pulse Drop #9: 3F Mutual by @hakkafinance ๐Ÿ‡

3F Mutual is a rainy day fund designed to act as collective insurance against the risk of MakerDAO Emergency Shutdown.

3F's AMM design allows users to purchase insurance underwritten by 3F Mutualโ€™s fund pool at any time.
2/ 3F Mutual's market-making mechanism aligns participant incentives to form a positive cycle that aims to increase insurance capacity, lower premiums, and increase revenue for the protocol and its underwriters.

๐ŸŒค๏ธ This rainy day fund also produces dividends during sunny days...
3/ When you purchase insurance, you receive both insured units and shares which means youโ€™re acting as both an insurance buyer and an underwriter for the pool.

Underwriters receive dividends in the form of 15% of all insurance fees paid to the pool.
4/ Learn more about how you can hedge your risks with 3F Mutual and/or earn dividends for providing capital to the pool.

Dive into the latest drop to learn more about how 3F Mutual functions and where 3F Mutual fits into the wider Hakka ecosystem defipulse.com/blog/3f-mutual
5/ This is paid promotion for 3F Mutual and Hakka Finance as part of our DeFi Pulse Drops series where DeFi Pulse works with projects to launch their new features and builds. If you want us to work with you, please get in touch!

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More from @defipulse

23 Oct
1/ ๐Ÿ‡ DeFi Pulse Drop #8: @RariCapital V2 ๐Ÿ‡

Rari V2 introduces decentralized governance to Rari Capital and the new Rari Governance Tokens (RGT).

RGT holders govern the protocol and Rari Treasury, determining new protocols integrations, pool parameters, and risk parameters.
2/ 87.50% of all RGT tokens are being distributed via a liquidity mining program happening now. Anyone with funds deposited into Rari pools are currently earning RGT tokens on top of pool returns

Read this post from Rari for more details
medium.com/rari-capital/aโ€ฆ
3/ Rariโ€™s governance has a cool feature called โ€˜Passthrough Governanceโ€™

RGT holders can use tokens like COMP that accumulate in Rari pools to vote in other protocol governance. Itโ€™s a practical solution allowing users to engage with gov. while utilizing an automated strategy.
Read 5 tweets
13 Oct
1/ Introducing the DeFi Pulse Economic Safety Grade

Created in partnership with the fine folks at @gauntletnetwork, economic safety grades allow users to more easily quantify and compare the risks they face using on-chain protocols.
2/ Decentralized lending protocols have grown to become essential tools for DeFi users, but with that growth came added complexity.

It can be difficult for the average user to fully understand how they function let alone properly assess the risks they face.
3/ The DeFi Pulse Economic Safety Grade is created by running simulations utilizing data from centralized and decentralized exchanges combined with on-chain user data to estimate market risks.

Grades are focused on the risk of insolvency or in other words the risk to depositors
Read 6 tweets
10 Jul
1/ #DeFi meet @mstable_ and its meta-assets

mUSD is a USD-pegged token backed by a basket of popular stablecoins. Like all mAssets, mUSD generates a native yield and enables 0-slippage swaps between its underlying collateral.

Learn more about mStable defipulse.com/blog/introduciโ€ฆ
2/ mUSD solves the hassle of owning multiple stablecoins by instead creating a productive first-class meta-asset that minimizes the risks posed by individual stablecoins and enhances their functionality.

Anyone can deposit DAI, USDC, USDT, and/or TUSD to mint mUSD at a 1:1 rate.
3/ After minting your first mUSD, you can deposit it into mStable's SAVE contract and start earning.

mUSD deposited into SAVE earns a native yield generated from a combination of lending its collateral on @compoundfinance and @AaveAave and fees earned from mStable SWAP.
Read 7 tweets
22 Feb
1/ ๐Ÿ“ˆOver $1B TVL in DeFi and flash loans combined have drawn new eyes to #DeFi.

๐Ÿ“– Check out this academic examination of a potential DeFi crisis written by researchers from the Imperial College London๐Ÿ‡ฌ๐Ÿ‡ง arxiv.org/pdf/2002.08099โ€ฆ

20 page research paper too long? Here's a TLDR
2/ Abstract:
- DeFi's complex and intertwined nature puts it at risk of meltdown
- flash loans could "allow an attacker to steal the Maker collateral within just two transactions and without the need to lock any tokens"
- damages could range from $145M to in excess of $246M
3/ Introduction:
- Blockchain sought to remedy mistrust created by 2007-08 financial collapse
- DeFi requires large deposits to guard against 1) misbehavior and 2) black swan-like drops in asset value
- interconnected nature of DeFi creates "possibility of financial contagion."
Read 32 tweets

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