The core tools of traditional finance have been launched on-chain for the first time! @TreehouseFi and @FalconXGlobal have just introduced the first Ethereum staking rate forward contract, TESR FRA, marking an important milestone in DeFi history. To understand FRA simply: If your current ETH staking yield is variable, it might be 4% today and 3.5% tomorrow. But with FRA, you can lock in a yield for a future period, such as securing a 4.2% annualized return for the next 6 months. ————————————————————————— Problems solved by FRA: 1️⃣ Yield certainty Funds no longer need to bear the risk of staking yield fluctuations and can plan cash flow in advance. 2️⃣ Speculative opportunities Those bullish on future rates can go long on the forward contract, while those bearish can go short. 3️⃣ Complex strategy building By combining multiple FRAs of different maturities, one can construct interest rate swap (IRS) strategies. ————————————————————————— From a technical perspective, TESR...
🌳 A Major Milestone in DOR Adoption
@FalconXGlobal has executed the first tradable Ethereum Staking Rate Forwards (FRAs) referencing TESR, the benchmark staking rate published by Treehouse.
Institutional participants include Edge Capital, Monarq, Mirana & more.
Read on. 🧵👇
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