Beaver Finance — a single-asset smart yield enhancement platform that is the first in DeFi to integrate liquidity mining with an advanced options-based hedging solution for intermittent losses.
Volatile losses have become a major concern for liquidity providers as they continue to cause volatility in LP returns, especially for assets with diverging price trends. As decentralized market creation continues to move towards concentrated liquidity, the effects of erratic losses are further amplified.
Beaver finance answers this question, the protocol consists of several modular components that allow for active and efficient management of non-permanent loss. The Beaver asset allocation engine dynamically pools same-value tokens from LP pools through liquidity provisioning algorithms on the main DEXs, allowing users to earn high returns automatically from 2-token LP increase in single-token staking mode.
How does the DeFi work:
| 1 | The Beaver time loss hedging mechanism protects LP's holdings by adding to positions, creating portfolios of European options to hedge against I. |
| 2 | Beaver offers 2 types of yield strategies: mining with liquidity provision and mining with IL hedging, both of which require only one-way staking on the Beaver platform. |
Beaver Finance will support currency pairs with high returns and optimal risk mitigation. Users can choose any pair of tokens and contribute one platform-backed asset of their choice to Beaver LP pools and leave the rest to the Beaver algorithm, including token pairing, LP supply, staking, compounding and rewards. The audit of the smart contract has been verified and can be found at the link.