Resonate announces their newly formed, mutually beneficial partnership with Velodrome Finance. This is the first time they have formed a formal alliance but with plans to set up many more.
To adequately comprehend and appreciate the alliance scenario and what it entails, it is imperative to have a deeper insight into where Resonate is concerned. Revest Finance has been instrumental in the development of Resonate, which is a Yield Futures Protocol.
This protocol has been created on Revest’s Financial NFT (FNFT) technology platform. The protocol augments the function of segregating a financial situation’s principal and interest elements with the issuance of two separate FNFTs.
Understandably, one accommodates the principal aspect while the other accommodates the interest factor. Resonate also helps clarify the factors in ascertaining the calculations behind the rights to future interest, matching, and balancing the accounts of issuers and purchasers.
Conversely, Velodrome Finance is an Automatic Market Maker (AMM). This entity has been created to dispense deep liquidity and lower the costs involved in exchanging fees and decreasing slippage, all within the Optimism ecosystem.
Velodrome Finance is also involved with rewarding liquidity givers, together with partaking governance entities, all based on VELO, which is their own indigenous token, along with the allotment of veVELO.
To creditably sum up the positive angles to this important tie-up between Resonate and Velodrome Finance, first and foremost, it will pave the way for Velodrome Finance to successfully and effectively lower its emissions curve.
Secondly, handing out upfront payments in return for buying the rights to the upcoming yield of a staker will assist the entity in possessing their protocol-owned liquidity, along with the pathway and means to suitably increase their assets. Through all of this, both Resonate and Velodrome Finance will be in a position to make further crucial expansions.