Thread by @eli5_defi

#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.

https://twitter.com/eli5_defi/status/1620389794068180993?s=20&t=JrEuU12wrHBm1pQXoJ5R6g

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:

https://twitter.com/eli5_defi/status/1621860609200619520?s=20&t=JrEuU12wrHBm1pQXoJ5R6g

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

https://twitter.com/FactorDAO/status/1621512158508113925?s=20&t=JrEuU12wrHBm1pQXoJ5R6g

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.

16/ Tagged #RealYield seekers:
@TheCryptoDog
@milesdeutscher
@OnChainWizard
@SamuelXeus
@Route2FI
@thedefiedge
@blocmatesdotcom
@CryptoHayes
@takegreenpill
@0xthade
@CryptoKaduna
@MoonKing___
@crypto_condom
@ThorHartvigsen
@AstrologyCrypto
@CroissantEth
@andrewsaunders

17/ Tagged amazing #DeFi educator (1):
@byChadManDan
@jediblocmates
@rektdiomedes
@JiraiyaReal
@NickDrakon
@ReveloIntel
@RiddlerDeFi
@crypthoem
@TheDeFinvestor
@crypto_linn
@archipelabro
@launchy_
@Dynamo_Patrick
@jake_pahor
@CryptoDragonite
@VirtualKenji
@defi_mochi

18/ Amazing #DeFi educators (2):
@phtevenstrong
@DeFi_Made_Here
@Prof_Crypto_B
@thewolfofdefi
@0xUnihax0r
@defiprincess_
@DefiIgnas
@DegenSensei
@DeFi_Cheetah
@TheDeFISaint
@TheCoffeeBlock
@ViktorDefi
@SmallCapScience
@ChadCaff

19/ Amazing #DeFi educators (3):
@DeFiMinty
@Slappjakke
@DAdvisoor
@burstingbagel
@royalty_crypto
@shitc0in
@EricCryptoman
@WinterSoldierxz
@FishMarketAcad
@Chinchillah_
@0xtindorr
@ArbiAlpha
@0xCrypto_doctor
@Only1temmy
@CoinSurveyor

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

https://twitter.com/eli5_defi/status/1624403153423855616?s=20&t=BX8JS3tekcp_rgHHKo5F9A