Formation Finance

Formation Finance

Formation Finance offers smart yield farming 2.0 through its Risk Parity Protocol, which provides cross-chain yield-farming strategies via index coins. The protocol optimizes return-to-risk ratios and minimizes risk through diversification and smart-asset allocation.
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Description

Formation Finance is a platform for smart yield farming 2.0, utilizing a Risk Parity Protocol. This protocol adopts principles from Bridgewater's All Weather strategy to offer four classes of cross-chain yield-farming strategies through index coins. Its systematic architecture constructs risk-adjusted parameters to optimize the return-to-risk ratio. By prioritizing secular diversification, the risk parity rebalancing mechanism sorts smart-asset allocation by pairing countertrend assets, allowing for iso-diversification to minimize risk fluctuations. The platform aims to outperform popular financially engineered strategies and offers the potential for generating a fixed income sent to a user's wallet monthly.