Overview
High level overview
Last updated
High level overview
Last updated
When a user comes to Florence Finance seeking yield on their stablecoins, it is a simple process to go from stablecoins in their wallet to earning real-world yield in a Florence Finance Vault.
As a user of the Florence Finance platform, there are two things you can do:
Earn real-world yield on your stablecoins through a Florence Finance Loan Vault
Earn our native Florence Finance Medici (FFM) token by providing flrEUR/USDC liquidity in the relevant liquidity pool and staking your LP token to the corresponding rewards pool (Nitro Pool on Camelot)
For a user to participate in a Loan Vault and start earning yield, they must exchange their stablecoins, such as USDC/EURA/EURC to our native currency flrEUR Token, which is backed 1:1 with by principal amount of performing loans outstanding plus the accrued interest thereupon (in EUR). This can be done through our treasury function with EURA on Arbitrum and EURC on Base or with any alternatie funding unit on DEX (Camelot / Aerodrome)
Once a user has their flrEUR tokens, they can now make the choice of whether they want to earn real-world yield in the Loan Vault or if they want to earn FFM token rewards through liquidity provision & staking. If a user wants to enter the Loan Vault and earn real-world yield, they simply have to supply the Loan Vault on our dApp with flrEUR in return for Loan Vault Tokens (LVT). Once you have supplied the Vault with flrEUR you immediately start earning interest, this means that when you withdraw flrEUR from the Loan Vault you will receive back your principal plus the yield you have earned in the form of additional flrEUR.
Suppose a user wants to earn FFM rewards; They would contribute flrEUR & USDC tokens to the corresponding liquidity pool on Camelot and/or Aerodrome and Stake the LP tokens to the corresponding rewards pool. You will immediately start earning FFM rewards once you have staked and can claim these rewards at any time. And if a user wants to stop staking they can do so by unstaking at any time.
Lending will initially be funded and settled in FIAT to facilitate adoption by non-crypto native lending platforms. It is expected that lending will be mainly in EUR, and it is envisaged that the funders will hold the exchange rate risk associated with funding these EUR-denominated loans with non-EUR-based stablecoins/tokens. Now that we are onboarding EURC as funding currency on Base we are hopeful that more people will be able to & choose to fund in EUR stablecoins.
