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SwissBorg Integrates Idle Finance’s Perpetual Yield Tranches

Investing26 January 2023

Cyborg

SwissBorg expert

The Smart Yield section of the SwissBorg app welcomes a new single-sided staking strategy powered by Idle Finance, ushering in new ways for SwissBorg’s users to earn boosted yields on their $MATIC. Introducing Idle’s Perpetual Yield Tranches.

What is Idle Finance - Fueling the future of DeFi yields automation

Idle Finance is a decentralised protocol and set of products that aim to unlock the power of DeFi offering yield automation and risk tranching infrastructure.

From institutional players and DAO treasury managers to individuals, a vast range of liquidity providers use Idle as a one-stop source of yield to optimise capital efficiency and tailor their risk exposure to personal needs.

The Idle product suite is composed of three core strategies: Best Yield and Perpetual Yield Tranches, Senior and Junior. Overall, this wide offering allows users to algorithmically optimise their digital asset allocation across leading DeFi protocols, choosing between the maximised returns generated by Best Yield or the risk-adjusted ones of Senior and Junior Perpetual Yield Tranches.

Founded in 2019 and backed by ConsenSys and other notable names in the crypto industry, Idle Finance has always prioritised transparency and security: all the smart contracts have been audited multiple times, and the protocol boasts a proven track record, being one of the longest-running and battle-tested in the DeFi space.

From November 2020, the governance of the protocol has transitioned to a fully decentralised model, with the introduction of the Idle DAO, which - powered by the $IDLE governance token - allows the Idle community to actively lead the maintenance and strategic development of the protocol.

What are Idle Perpetual Yield Tranches - Reimagining DeFi risk and yield management

In the financial world, a tranche represents a product split that carries specific features like risk, yields, duration, and are often arranged together to create pools of diversified products or a basket of investments with similar characteristics.

Based on this concept, Idle launched its own Perpetual Yield Tranches, bringing the hedging instruments available in traditional finance into the crypto space.

Idle Perpetual Yield Tranches are capital pools that automatically generate and tranche yields and risks based on a range of market-neutral yield strategies, including lending income, trading fees from Automated Market Makers, and protocol incentive farming.

Pools are associated with two risk-adjusted products, tailored for any investor needs:

Senior Tranches provide a shielded access to any DeFi yield sources. They offer built-in protection on deposits and provide extensive risk coverage thanks to their Junior counterparty;
Junior Tranches are designed to overperform any DeFi yield source. These products achieve boosted yield as they are compensated for providing first-loss capital to their Senior counterparty.

This kind of DeFi yield primitive allows a wider array of risk/return products, with users being able to create a customised yield portfolio suited to their needs. This opens the door to a broader audience compared to traditional, one-size-fits-all yield products.

Idle + SwissBorg: Unlocking new opportunities for DeFi investors

Over the last few years, DeFi has become more and more sectorized, and this led to a flourishing range of synergies between teams.

This partnership is a perfect example of it. The integration of Idle’s stMATIC Junior Perpetual Yield Tranche into the SwissBorg app is just the beginning of a promising array of collaborations for the SwissBorg user. On the one hand, SwissBorg offers its audience a wide range of products through a superior UI/UX. On the other hand, Idle specialises in creating sophisticated DeFi strategies for automating yield generation and risk management.

By joining forces, SwissBorg can focus on constantly improving their platform and user experience, while Idle handles the complex and time-consuming tasks of protocol integration, testing, security audits, and yield market analysis.

This allows for a more efficient use of resources and a higher level of expertise in both areas. As a result, users can access DeFi products that are not only easy to use, but also offer advanced features for maximising yield and minimising risk.

Idle + SwissBorg: Unlocking new opportunities for DeFi investors

The first Idle strategy to be integrated in the SwissBorg app is stMATIC Junior Perpetual Yield Tranche, based on Lido. Users who deposit their $MATIC in the vault will be able to leverage the power of Lido’s liquid staking solution while benefiting from the boosted APYs of Idle Tranches’ Junior class.

To do so is simple, swap any token or fiat into $MATIC. In your list of assets, click on $MATIC and proceed to the “MATIC Earn” menu. In this menu you will find the Core yield, and the Idle Finance yield strategy. Have a read of the conditions for this opportunity and select the amount of tokens you feel comfortable allocating to it, it’s that easy.