Formation Fi

Formation Fi operates as a cross-chain decentralized asset management system within the decentralized finance (DeFi) sector. The company was founded by Kristof Gagacki and is based in Warsaw. In May 2021, Formation Fi announced it had raised $3.3 million in a strategic sale round with participation from founders of prominent DeFi protocols like Bancor, Synthetix, and Polygon, along with several venture capital funds.

The core of Formation Fi's business is its Risk Parity Protocol, designed to offer a structured approach to yield farming, which it terms "Smart Yield Farming 2.0". This protocol allows users to create diversified portfolios tailored to their individual risk preferences. The system constructs risk-adjusted portfolios by utilizing algorithmically rebasing, tokenized indexes that represent various crypto assets across multiple blockchain networks. This methodology aims to provide users with comparable or better yields than traditional yield farming strategies but with reduced overall risk. The platform serves crypto investors who are looking for more sophisticated, risk-managed investment strategies in the DeFi space, moving beyond simply chasing the highest annual percentage yields (APY).

The platform's native utility token, $FORM, is central to its ecosystem. It functions as a triple-utility token, providing holders with a share of the protocol's net income, voting rights for governance proposals, and access to exclusive 'Darkpool' automated market maker (AMM) pools. The total supply of FORM is one billion tokens. The protocol operates on the Ethereum blockchain and has developed a bridge to the Binance Smart Chain. Users interact with the platform by depositing cryptocurrency and selecting an index coin (such as Alpha, Beta, Gamma, or Parity) that aligns with their risk tolerance, which the protocol then uses to generate yield across various cross-chain strategies.

Keywords: decentralized finance, DeFi, asset management, yield farming, cross-chain, Risk Parity Protocol, FORM token, crypto portfolio, blockchain, algorithmic trading, decentralized asset management, smart farming, liquidity mining, crypto indexes, governance token, AMM pools