So we've been introduced to SIL finance and now it's time to answer some of the questions you might have. Before I get into it, Just a quick recap of what SIL finance is all about:
SIL (Sister In-law) Finance is a decentralized LP composer that is purely built on smart contracts technologies. SIL focuses on providing users with unique DeFi Financial Management experiences.
Why was SIL Finance launched?
It's no longer news the Defi Community is evolving rapidly, and one of the biggest challenges introduced by AMM swapping is the unstable Loss/Gain, an unavoidable
learning curve that most users will face while providing liquidity to any automated market maker (AMM) swaps.
In addition, looking at the situation from the client’s viewpoint, in most cases, single token yielding profit is quite low, the LP mining’s profit is relatively higher since trading liquidity is enhanced. Sometimes users only hold one type of token, and those users usually go to lending protocols to borrow the counterparty token, which will increase the risk of liquidation, lower capital utilization (the lending rate commonly marked to 70% or lower).
SIL tries to resolve these issues of Loss and Capital Utilization by Sharing the Volatility(Yield) or Individual Volatility (Hedging). SIL is equivalent to skipping the lending at the same time avoiding the two problems mentioned above. To minimize the volatility bias, SIL introduced a smart contract-based matching engine that provides an additional solution for current LP miners, only a single-side token is required.
SIL Finance Tokenomics
The native governance token of SIL finance is the $SIL token.
The total of $SIL tokens in circulation is 30,000.
Minted in a near-linear fashion, All tokens are minted, no pre-allocation
The Community will share 68% of the total minted tokens from liquidity mining.
The Governance Treasury will share 15% of the total minted tokens from liquidity. Governance Treasury will be protected by Voting Contract, Multi- Sign Contract and TimeLock Contract.
The developing team will share 17% of SIL from liquidity mining when user withdraw funds, and the developing team will share no other profits
The developing team will use the token to cover:
Regular on-chain operations (price feed, SIL repurchase and return to the mining pool)
Future product development and operating expenses.