Resonate
Overview of Resonate
Resonate is the DeFi Yield futures protocol. Resonate splits apart the interest and principal components of a yield-bearing position. Those who hold tokens which may be deposited into yield-bearing systems can receive an instant, upfront payment on the present value of that future yield, in exchange for locking their tokens. An ideal solution for traders who want to receive guaranteed and consistent yield farming rewards for staking tokens or providing liquidity. For those who want to purchase the Yield Futures, or the rights to future yield, Resonate places them in a position where they can do so at a discount to the expected future value of the interest. For protocols wanting to reduce their burn rate, this discount can offer a better way to incentivize providing LPs.
DeFi today is based around Yield-Farming, in which dozens of different protocols allow users to deposit their unused tokens in exchange for interest on those assets. In return users often receive derivative interest-bearing versions of those same assets. While those assets hold value based on their ability to be redeemed for their underlying asset, there has yet to be a protocol or liquid-asset that allows you to represent the future appreciation of that asset, until now.
Let's assume that the current interest rate on Yearn.Finance for USDC is 10%. If I deposit 100 USDC into their vault and wait one year I will be able to withdraw 110 USDC. However, this requires you to have the patience of waiting one year. With Resonate, users can receive a fraction of this expected long-term yield as up-front payment, while the counterparty who pays out up-front receives the rights to all of that generated-interest.
Powered by Revest-Finance's proprietary locking-mechanisms, both sides in this transaction are minted what we call a Financial-NFT (FNFT) representing their righs to claim those assets in the future. These NFT's are tradeable and liquid, even though the underlying assets they represent may not be. For example, a user holding an FNFT representing the rights to 10-USDC of interest in 1-year may be able to such an FNFT on their favorite-marketplace for a 9-USDC, profiting off the difference in what they paid to mint it, and the assets it represents. Revest FNFT's conform to the ERC-1155 Multi-Token Standard
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