Why i think Formation.fi is going to be a revolution in DEFI.

4 min readJun 24, 2021
Photo by Michael Longmire on Unsplash

Cryptocurrency is all about adoption.Resent studies shows that only under 3% of world population hold some kind of cryptocurrency.

To popularize adoption of cryptocurrencies changes from our current system and technologies is a vital part

Banking is one of these system that is being disrupted by crypto universe. 2020–2021 marks DEFI Boom!

Infancy problem of DEFI platforms.

Under 3% statistics of crypto currency itself shows how small people have adopted this new type of technology, plus the volatility on top of that..Phew!!.Then one can imagine how DEFI can be.

Hacking into DEFI platforms, Soft rugs ,Hard rugs are day to day stories at DEFI space.

The lucrative thing about DEFI platforms is better interest on the coins you keep, better lending and borrowing power than a bank, And those juicy 1 Million APY on certain coins!

But if you are not careful enough,your portfolio will be “rugged” before you even realize it.

The FORMATION.FI solution

One of the most effective strategy of investment in modern times is not focusing in maximizing yield but reducing risk.The best way to achieve this is by investing in funds which are non correlated.

In traditional investments this is achieved by investing in Stocks ,gold or bond.Which all give different rate of returns in different market conditions, but together will hedge against each other and produce stable but good returns.

An example of positive and negative correlation of two different asset classes in different macroeconomic conditions

This risk parity method is easier to do in traditional asset class, but in crypto and DEFI its a different story.

In the decentralized and trust less world of crypto , assets(coins) exits in different network(Smart Chains). FORMATION.FI aims to bring these assets together in a risk free way with maximizing returns and minimum risk.



Anything Related to crypto is always under my radar. But none is financial advice. As a guy who dreams decentralized world, let my face remain unknown.