Formation. Fi: application of the strategy of "all-weather" earnings across chain aggregator | project is introduced

Finance, investment and trading, these nouns symbolize "professional", "complex" and "unattainable" in the concept of the older generation. Because in traditional finance, there are not many opportunities for retail investors. The best investment opportunities are reserved for institutional investors and qualified investors, with few financial activities available to retail investors. Add in already thin profits, squeezed by centralised financial intermediation, and there is little left.

Defi, Decentralized Finance, completely breaks the pattern of traditional finance. In a permission-free, egalitarian, open and transparent environment, users can move between different agreements at will and maximize revenue through the combination of different agreements. Ethereum, Binan smart chain, and Huobin ecological chain are the three most developed blockchains of DEFI ecology, with a total lockup volume of 64 billion US dollars.

Defi Ecological is growing fast, but it is still in its infancy. Due to the insecurity of the protocol and the high price volatility of the asset, most users are only looking for short-term profit maximization rather than long-term deep engagement with the protocol. The high risk and high return of the DEFI protocol has naturally become synonymous with it.

However, the really optimal investment approach should be to maximize returns while balancing risks. Just as Bridgewater's "all-weather fund" follows the logic of diversifying assets into less relevant ones to withstand all the unknowns.

Formation Fi, a 24/7 revenue aggregator

Formation Fi is a cross-chain revenue aggregation platform with a risk parity agreement at the heart of its operations. The risk parity protocol combines the user's risk preference, customizes the multi-chain liquidity mining strategy through the algorithm, and allocates the assets to different chains after balancing the risk and return. The agreement will then create index tokens for users to track mining assets and earnings at any time. In order to increase the liquidity of mining assets, the minted index tokens can be traded seamlessly with other ERC-20 tokens and can even be used to continue mining.

So what is risk parity? The idea of risk parity is to seek the balance of risks, not the assets that maximise returns. In the investment portfolio, by correcting the risk-return per unit of different assets, the inverse matching of returns among assets is carried out, and the overall positive return under different market environments is finally obtained. The typical inversely yielding asset pair is stocks and bonds.

On another dimension, asset diversification can also resist the free changes of the market. In general, Return = Alpha + Beta + Gamma, where Alpha is the excess return of each asset over the market, Beta is the overall volatility of the market, and Gamma is the risk-free cash asset return. In the long run, BETA is the driver of returns, so it is better to invest passively to optimize BETA in your portfolio.

Liquidity mining for the Formation Fi platform will be updated periodically. At first, Formation Fi will support the Ethereum, Binancin smart chains, and Huobi ecochains, followed by Polkadot, Cardano, Cosmos, and others.

Four strategies in Formation Fi risk parity agreements

Formation Fi's risk PARITY protocol offers four strategies: Alpha, Beta, Gamma, and Parity.

The index tokens of the Alpha strategy will provide liquid mine (leveraged mining) returns from the top DEFI projects within each network, trying to maximize returns but also the highest risk.

Beta strategy's index tokens provide investors with price exposure to tokens from Web3.0 infrastructure projects, including DEFI (Lending, Decentralized Exchange, Derivatives, Asset Management...) , Layer1 and Layer2 Infrastructure, Data Marketplaces, Predictors, AI, and Storage. This strategy is medium risk.

The index token in Gamma strategy provides investors with stablecoin mining income from various lending platforms in the network, and investors will receive stable cash flow. The strategy has low risk.

Parity strategy is a community of three strategies. Tracking the performance of the three strategies, the algorithm adjusts the weight of each strategy itself according to the market environment, and the risk of the strategy varies according to the market environment.

The chart above shows an overview of the benefits of each strategy across different networks.

Formation Fi's native token $FORM

Formation Fi's native token Form offers three features. First, Form holders can vote on the agreement and decide where to spend the money in the agreement vault. Second, Form holders can participate in liquidity mining by pledging to receive Alpha, Beta, Gamma, and Parity index tokens. Finally, Form holders have the right to participate in the protocol's dark pool, which will incubate different potentially successful DEFI projects in the future.

The total number of Form tokens is 1,000,000,000, and when the 250,000th token is released, the total number of tokens will be issued at a rate of 2% per year.

Among them, the seed round accounted for 5%, the private round 5%, the strategic round 5%, the ecological round investors 2%, the public offering 0.83%, the reward pool 33%, the team 25%, the ecological development foundation 3%, the market operation 1.97%, the network security maintenance 10%, the consultant consulting 2%, Liquidity is 1.2 per cent and syndicates 6 per cent.

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