Flurry Protocol provides a cross-chain token that combines the benefits of a stable coin with uninterrupted yield farming. Anyone who wants to get into a DeFi product with lower risk and a much lesser yield farming charge may be interested in this platform.
Decentralized Finance (DeFi) grew at such a quick pace in 2020 that many are declaring it the year of DeFi. The overall value of DeFi protocols is currently valued at approximately $19 billion.
Over the course of 11 months, that’s almost a 20x increase which leads to crypto fans looking for ways to generate income with DeFi protocols in a variety of ways. In fact, Crypto investors can now make decent profits on their assets thanks to the emergence of Defi platforms.
However, there are a few issues with the current market such as fragmentation in DeFi products, high gas cost, limitation in user experience as well as the possibility of funds locked up that must be solved. To deal with these issues,
Flurry protocol introduced a solution.
Flurry Protocol is Making DeFi More Efficient
Lawrence Wong, CTO of Flurry Finance, and Mike Ting, CEO of the protocol, both came from backgrounds in computer science and traditional banking.
The pair aimed to generate financial products to meet the diversity of investors’ demands. They both turned their career path to traders and created trading robots to perform trading activities more efficiently.
Significantly, they decided to translate their knowledge in financial product design, as well as their technical background, to the DeFi space in the summer of 2020.
When the founders were discussing the poor user experience with existing DeFi products, they came up with the concept of creating a new DeFi project name Flurry which was their first DeFi product concentrating on generation yield for token holders.
However, Flurry’s mission is to make DeFi products more usable as the company believes that the biggest source of pain in the DeFi area is the user experience, not the yield creation capacity.
Flurry creates rhoTokens backed by stablecoins and looks for the best transaction fee adjusted yield for the stablecoins that users can access.
With rhoTokens, users can produce yield without having to go through the time-consuming process of locking/unlocking and moving in and out of various DeFi items.
Flurry will take care of everything for its users in an automated and ongoing way. Users will see their wallet balance grow as a result of the interest earned because the process is transparent to them.
rhoTokens have the same value as the underlying stablecoins and may thus be used as a medium of exchange because they are linked 1:1 to them.
Like other tokens, Flurry has been through several significant milestones during their developing journey in the DeFi world.
The protocol has attracted more than 130k followers on Twitter platform with the total of approximately 10k members on Telegram.
Importantly, its smart contract audit was performed by Certik in July which expected to be ready for the mainnet. The first product of the platform has been actve on the testnet and the company is planning to expand with more features after its launch.
Currently, Flurry is seeking opportunities for collaboration with cryptocurrency exchange providers to extend its partnership in the DeFi ecosystem.
To achieve a solid position within the dynamic crypto market, Flurry has two major planning activities for future growth which are expanding connection with yield techniques on different chains and tuning the performance of strategies that are expected to be completed by 2022.
How Does Flurry Protocol Work?
With the core purpose to enhance user experience, the process of using Flurry protocol is simplified which everyone can do with four simple steps.
The first step is minting rhoTokens where Flurry protocol allows users to convert their deposit stablecoins to rhoTokens.
In the first step, rhoTokens are created on a 1:1 basis on three common stablecoins: USDC, USDT and BUSD.
When doing this, the protocol will be able to facilitate their users within their platform through converting these popular stablecoins directly to rhoTokens without additional fees.
Moving to the second step which is called automated yield farming. At this step, Flurry creates yields by distributing stablecoins to various DeFi protocols through borrowing or lending.
Noticeably, at this step, users can potentially receive bonus tokens such as Comp or Farm as rewards from DeFi platforms.
At the third step – Rebasing, by raising the supply of the relevant rhoTokens, the yield generated is transferred to the users of rhoTokens.
As a result, this permits the rhoToken to remain pegged to its underlying token at a 1:1 ratio and therefore, the number of rhoTokens in users’ wallets will grow in proportion to the yields earned by the platform.
This is a key characteristic that sets FLURRY apart from other yield aggregators. Finally, with the redeem rhoTokens step, the underlying rhoToken can be redeemed at any moment with a small withdrawal fee.
What Makes Flurry Different?
Flurry protocol offers two advantages over conventional Yield Aggregators: no locking and cross chain ability.
Here is why these advantages matter:
No locking: Flurry’s interest distribution mechanism differs from that of other yield generators. In specific, rhoTokens are used to disperse the yield created by Flurry – which means Flurry’s users funds are not held in escrow and this allows them to trade while also earning interest.
Cross chain: Flurry aims to work cross chain to find the optimum yield after cost on different Defi Protocol cross chains, whereas current yield generators are limited to Ethereum-based items.
This function emphasizes the flexibility of the protocol in terms of facilitating and enhancing users’ experience in the DeFi world.
In the long run, the team is working to deploy Flurry on other chains such as Cosmo and Polkadot, which have cross-chain capacity.
Allowing FLURRY to search for yield across chains while dropping for fees will offer even more advantages, and provide market leading returns for rhoToken holders.
Thriving in a Competitive Market
Flurry’s target clients will be everyone who owns stablecoins – and wants to make great returns with low risk.
Stablecoin owners who are uninterested in learning about the mechanisms of various DeFi devices and are willing to pay a charge for automation and research performed by others will be impressed by this platform.
Investors who already hold stablecoin but aren’t using DeFi can gain a lot from Flurry – and make money from an asset that is sitting there lifeless at the moment.
While other yield generators may be able to offer some of the features of Flurry, most are operating on a single chain – Flurry is working to be cross-chain compatible, and offer a feature set that is unassailable.
With the capacity to use all of the available DeFi tools to get the best yield, Flurry differentiates itself in the world of yield generators.
Because the pool token value fluctuates with the amount of interest earned, the pool tokens are not “usable,” and users must redeem the tokens in order to access their funds.
As a result, the funds of users are effectively frozen. In the other words, Users are not required to redeem their funds or pay gas expenses in order to use the rhoTokens.
Watch Flurry Protocol Grow
Flurry Protocol is addressing one of the biggest areas in DeFi that needs improvement – the user experience. Even if a person wanted to learn to become a top-notch yield farmer – they may have better things to do with their time!
To learn more about Flurry Protocol, and watch it develop an incredible tool set for DeFi investors, check out its website by clicking here. You can also keep up with Flurry on Twitter, Telegram, and Medium – so you don’t miss a thing.
The post Flurry Protocol: Is This The Future of Yield Farming? appeared first on Blockonomi.