- Private SHO
Formation Fi is a DeFi project that aims to take yield farming to another level by integrating the risk parity strategy first implemented by billionaire hedge fund manager Ray Dalio for stock markets. The yield farming protocol developed by Formation Fi distributes risk across multiple uncorrelated assets within the crypto space. The protocol is chain agnostic, community-oriented, and targets long-term success.
DAO Approved Metrics
What is Formation FI (FORM)?
The End of Yield Chasing. Welcome to Cross-Chain Risk Parity Smart Farming 2.0
Formation Fi revolutionizes portfolio construction by introducing a risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks using the basic principles of the Risk Parity movement. The systematic architecture constructs a risk-adjusted portfolio that optimizes the return-to-risk ratio for each unit of risk, ultimately delivering a superior return over time.
Through prioritizing secular diversification, the risk parity rebalancing mechanism sorts "smart-asset allocation" by pairing counter-trend, cross-chain assets within their four classes of index coins to reduce the overall risk at a fundamental level. Formation Fi rethinks how Formation interacts with risks in DeFi and uses its data-driven insights to algorithmically construct a portfolio that will outperform through all environmental changes over time.
What is Formation FI (FORM) marketing strategy?
Summer of 2020 started the mass adoption of Defi. The Formation Fi team calls it Defi Summer 1.0. Summer of 2021 will start the mass recognition of Smart Yield Farming 2.0. The Formation Fi team calls it Defi Summer 2.0, and it intends to unveil the Defi Summer 2.0, with its unique partnership program described below.
Step One: Create and expand the Form Gang through influencers and cross-chain partnerships (aka. Defi Legends).
- The Formation Fi Ecosystem includes more than 150 top ecosystem partners as an integral part of the Form Gang whose mission is to advocate Smart Yield Farming 2.0 as the next logical evolutionary step of yield farming in the age of the multi-chain Web3 ecosystem.
- To gain rapid adoption for the Form token, every month after the official public listing, Formation Fi will initiate the double-reward special staking pool program with a progressively increasing reward ratio with the most trusted partners, they call the Defi Legends, such as Polygon (ERC) and Refinable (BSC) who can bring their community members to the Formation Fi ecosystem.
- Starting with Polygon, Formation will introduce risk-free, double-reward AMM staking pools available only to the native token holders of the Defi Legends. For a limited time, for example, Polygon's Matic holders will have a single-sided exposure to a Matic-only pool, which will then be connected to a Matic:Form paired pool created by Formation Fi in the backend. This simpler staking mechanic will allow the Matic holders to farm a double-reward in Form tokens without the hassle of manually creating an LP token themselves.
- Each of the hand-crafted pools will be designed to usher the communities of their Legend Partners into the Formation FI ecosystem. Each pool will limit the size of the cap and reward ratio to make sure that the demand stays strong and constant throughout the program. Each limited special pool will be heavily promoted by their Defi Legend Partners across all their user-base in all major channels. To access such pools, each user will be required to own a certain number of partners' native assets.
- Within the month immediately following the public offering, as illustrated below, Formation Fi will increase the reward ratio with a new Defi Legend in the pipeline and the corresponding announcement will be made at the end of each month. Community anticipation for the program will be high. For example, more than 70,000 Matic holders have already applied for the program at the time of this publication.
Formation currently has several partners committed to joining the Defi Legend Program.
Step Two: Launch Raging Bull Alpha Index.
- The first product, Raging Bull Alpha Index, will be released on the back of Form Gang (described above). Raging Bull Alpha Index will include Defi's most high-growth assets with liquidity mining characteristics and yield farming strategies across ERC, BSC and HECO while hiding all the complexities in a single asset exposure (index) like user experience. With one click onboarding process, it will make defi as easy as clicking a button.
- Raging Bull Alpha through high APY across-chain index strategy will be capped to $250M TVL. It will be with anti-dump protection by introducing price point incentives for back orders.
Step Three: Launch Infinity Alpha Dark Pools for SHO.
- Formation Fi will introduce the Infinity Alpha Dark Pools to the strong holders of Form only. As the Form Gang grows in size and stickiness, select form token holders will have the exclusive access to their dark pools consisting of highly curated staking pools for exclusive deals.
- By lack of approachability and exclusivity, they expect high interest from the Form Gang. It will include exclusive yield farming products for a limited time, fueled only by a small number of projects backed by the industry top heavyweights in Defi who are a part of Formation Founders Club.
Step Four: Launch Web 3 Formational Beta, Fixed Income Gamma, and Risk Parity progressively.
- This phase marks the ever expanding community growth by introducing a full suite of indexes designed by the Formation FI ecosystem. Each index category will be unveiled on a quarterly release schedule.
- At this stage, the Formation FI ecosystem should have no less than 100,000 monthly active users.
What makes Formation FI (FORM) unique?
The product viability can be summed up in two phrases: a) Radical Simplification and b) Risk Management through Diversification and Indexing. As of yet, there is no such product or service available in Defi.
- Formation Fi's risk parity will be radically simple to use. Defi, as one of the most prominent applications of Blockchain, is not practical to use for most investors. It's because Defi user experience is riddled with ever evolving protocols, lack of easy-to-navigate and unified user interface and lack of security. Today's Defi is for those few who understand the technical jargon and the in's and out's of the complex web of applications. Some of us commonly call them Degens (i.e. degenerates), because they are short-term focused, unashamedly shilling pump-and-dump schemers. In short, they are speculators. The current Defi money legos essentially have no interoperable, easy-to-use interface for risk-averse and more discerning investors (as opposed to speculators). There is no bridge between the regular finance world and the Defi community and it's very difficult for regular investors to add liquidity to Defi protocols.
- Formation Fi stands for risk-adjusted investment through diversification. It uses risk calibration to determine balanced allocations across various components of an investment portfolio. Risk parity was pioneered by some of the largest hedge funds in the world, and has been used to manage and grow portfolios worth hundreds of billions of dollars with great success. To translate a risk parity approach to crypto and DeFi, Formation Fi's algorithm determines what factors underpin this strategy and whether and how they can be replicated in an algorithmic and decentralized fashion.
What is Formation FI (FORM) roadmap?
How does Formation FI (FORM) work?
Formation FI (FORM) revenue streams
All revenues will be generated from the fees collected when index tokens are minted and withdrawn:
What technologies Formation FI (FORM) created and used?
Formation Fi will be converting R statistical optimization software into Solidity so that correlation matrix across all assets across multiple chains can be constructed on-chain. This is the first time ever attempted in Defi.
What are Formation FI (FORM) tokenomics?
Form token is the governance token that entitles the holder on-going profit sharing and access to special investment opportunities on the platform.
All income generated by the protocol will either be distributed to $FORM holders on a pro rata basis or burned according to the following plan:
- $FORM holders will receive 50% of the fee collected by the protocol
- The operational treasury will also receive 50% for the core development team on a pari passu basis until the total USD value of the operational treasury reaches a daily maximum of $1M.
- Once the daily maximum has been reached, any further fees will be burned as a deflationary measure (only fees allocated to operational treasury are burned, fees continue to be paid to $FORM holders). This and other parameters could be subject to change as the result of a governance vote, beginning 12 months after IDO.