Resonate Announces Support for Balancer
Happy to announce that we’ll be bringing Yield Futures & FNFTs to Balancer following launch!
What this means:
Resonate will be offering support for any and all tokens hosted on Balancer pools. Through our day-to-day operation, we will drive sticky liquidity and increased TVL into Balancer, increasing the depth of pools hosted on their system and other adjacent projects in the ecosystem. Through this mutually beneficial relationship, Resonate will gain access to a larger customer base who without Balancer support might have remained beyond our reach, while Balancer themselves will benefit from the increased consistency in liquidity levels that Resonate offers. Friendly relationships between our communities mean easier customer acquisition for Resonate and increased awareness of novel liquidity solutions amongst the Balancer community.
Why Balancer
Balancer is effectively a one-stop-shop for all things AMM. Since launching in 2018, the Balancer team has proven that they can develop and maintain a successful DeFi ecosystem that is driven by decentralized governance. The team has shown that they respect and care about the ethos of the industry — which we here at Revest appreciate deeply. With all this considered, we believe that Resonate is a fantastic fit for the Balancer ecosystem.
By enabling the community to utilize FNFT technology on top of Balancer, a myriad of new opportunities will be created. Initial implementations will include incentivizing lockups through Resonate which utilize Balancer pools as the underlying yield source, directing sticky liquidity their way, as well as providing users a means for liquid staking through our proprietary FNFT system.
The Resonate team has further derived an equation allowing for the fair-pricing of Balancer Pool Tokens (BPT), analogous to LP tokens, utilizing this equation to construct a custom BPT oracle, which we will have more to share about soon.
Why Resonate?
Resonate brings together parties with different time frame preferences (long term or short term) and facilitates a mutually beneficial exchange. These are known as Issuers and Purchasers. Issuers are parties that want to sell their future interest rights for an up-front payment. Purchasers are parties that want to buy the interest rights of someone else’s locked principal for an up-front payment.
So why is this useful?
There’s a number of reasons, let’s start from the perspective of a Purchaser whose profile is most likely to fit that of a protocol treasury, DAO or enthusiastic long-term investor. These include:
- Align incentives: offer upfront incentives to tame mercenary capital and create positive-feedback loops. Leverage Resonate to lock-in liquidity providers, creating benevolent cycles within your ecosystem, all while stabilizing levels of liquidity.
- Regenerate your treasury: pay upfront to secure long term income. Utilize Resonate to replenish your native token, or perform a synthetic swap and diversify your holdings.
- Reduce your emissions: decrease your burn rate by paying out upfront. Incentivise lockups to offset your existing emissions schedule and reduce sell pressure.
- Leverage your stablecoin farming without liquidation risk: multiply the earning power of your stables by utilizing the leased capital of Issuers.
Now, let’s have a look at it from the perspective of an Issuer whose profile is most likely to fit that of a retail trader/investor, an institution or a whale.
- Upfront, guaranteed payout: provide liquidity confidently, secure in the knowledge that you’ve already been rewarded.
- Guarantee your interest rate: receive the expected value of future cash flows upfront, ensuring that market conditions are no longer a consideration.
- Protect your portfolio: Take upfront payments as stablecoins to hedge against future market volatility.
- Power resilience to changing market conditions: powered by Revest FNFT technology, positions in Resonate remain liquid throughout lockup, allowing you to take liquidity as-needed on any NFT marketplace.
So, as you can see there are a multitude of reasons to allow users to use each other’s principal investments to exchange time and risk profile to suit their preference. Prior to Resonate, this was not possible.
How about security?
Resonate has been aggressively audited and scrutinized, subjected to multiple BlockSec and Zellic audits, bug-bounties, next-gen fuzzing, and continuous-integration post-launch. Your FNFT is the vault and key to your locked positions. Keep custody and control of your financial future, while earning yield.
For the more technically inclined, you can see all of our audit reports here!
What’s next?
We have been working tirelessly for a long time and are very excited to finally unveil our creation. We strongly believe that it will act as an extremely beneficial value add to the crypto ecosystem, and look forward to working with protocols and their communities to implement Yield Futures and take a step towards a more effective and prosperous ecosystem.
About Balancer
Balancer is a community-driven protocol, automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems.
Balancer Pools contain two or more tokens that traders can swap between. Liquidity Providers put their tokens in these pools in order to collect swap fees. Balancer adopts powerful features to slash gas costs, super-charge capital efficiency, unlock arbitrage with zero-token starting capital, and open the door to custom AMMs.
Balancer pools with high token counts operate similarly to a traditional index fund (ETF), although with a key difference. Instead of paying fees to have a broker rebalance the pool, the pools collect fees as they’re continuously rebalanced by traders making swaps. This works because market actors are incentivized to rebalance the portfolio so as to take advantage of arbitrage opportunities. Furthermore, high token-count pools have the advantage of having many token pairs, creating additional opportunities to collect trading fees.
The result is a harmoniously incentivised relationship between Liquidity Providers and Traders. On one hand, Liquidity Providers get to collect trading fees, while their portfolio is continuously rebalanced. On the other hand, Traders gain access to an open, decentralized exchange with low fees. Win-Win.
Learn more about Balancer
Website | Twitter | Discord | Medium | Docs
About Resonate
Resonate is a Yield Futures Protocol developed by Revest Finance and built on top of Revest’s Financial NFT (FNFT) technology. Using Resonate, we’re able to separate the principal and interest components of a position by issuing two FNFTs; one containing the principal and the other containing the rights to future interest on that principal. Resonate facilitates the commerce of the rights to future interest by matching issuers (who want to sell their interest rights for a one-time upfront payment), and purchasers (who want to buy the rights to future interest for a one-time upfront payment).
Website | Twitter | Telegram | Discord | Docs
About Revest Finance
The Revest Protocol offers a revolutionary new use of NFTs as financial tools through the Financial Non-Fungible Token (FNFT). Individual and enterprise-level users can deposit any ERC-20 or ERC-721 into Revest’s interactive FNFTs and set custom unlocking conditions (time, value, or contract-based). Revest allows the tokenization of all non-fungible financial positions with non-fungible tokens. This simple turn-key solution offers elegant applications ranging from token vesting to cutting-edge implications for derivative and borrowing/lending platforms. Revest’s flagship product, Resonate, is underpinned, fundamentally, by this innovative technology.