YFRB Finance Whitepaper

yfrbfinance

YFRB Finance

Whitepaper

Yearn Flash Loan Arbitrage Finance

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1. Introducing

YFRB Finance

Whitepaper

Digital money is quickly gaining steam. This phenomenon

can be attributed to the fact that technology in

general is advancing ever more rapidly. Technological

advancements are making it easier for the propagation

and deployment of cryptocurrency. Since the advent of

Bitcoin as the first usable cryptocurrency, there have

been various developments that have changed the

scope of digital currency for the better. Consequently,

there have been a large number of variations of Bitcoin

that have been developed: altcoins. Some of the remarkable

innovations that have generated excitement

among cryptocurrency enthusiasts include flash loans,

decentralized finance (DeFi) and arbitrage.


2. Background

2.1 DeFi Flash loans

Flash loans are a relatively new aspect of decentralized

finance (DeFi). They have been deemed a revolutionary

innovation of cryptocurrency trading. Flash loans are

different from conventional loans because they are far

better and much more effective for crypto investors

and stakeholders. The chief feature of flash loans is

that they require no collateral! Yeah, that’s right! It is

like taking a loan from your favorite bank, and they do

not bother you about attaching a security to it, which

would otherwise be used to recover the loan in case

you default.

DeFi flash loans have an advantage to both the lender

and the borrower. The lender does not incur the risk of

illiquidity where the amounts borrowed might paralyze

the operations of the lender. Also, the lender does not

suffer from bad debts. On the other side, the borrower

is always safe with flash loans. They do not require any

collateral, and thus all the traders are equalized. The

only condition for acquiring a flash loan is compliance

with the smart contract, which requires that the borrower

should make the repayment and the agreed fee in the

same transaction; failure to achieve this will cause the

lender to cancel the entire transaction bearing the loan.

2.2 Arbitrage Trading

Arbitrage trading in the crypto world can be very lucrative

if properly executed. The trader utilizes the price

difference between two markets using the same coin.

When engaging in arbitrary trade, a crypto investor

looks at the exchange rates of cryptocurrency across

various platforms and takes two with a considerable

difference. To have a fluid and effective arbitrage trade,

the right opportunities must be analyzed and found.

Arbitrage opportunities can depend on a wide range

of factors, which include liquidity, the geographical

location, and the difference in listings in the major exchange

platforms.

With arbitrage trading, it is also important to note that

flash loans have added a very sweet flavor to the whole

process. The main point of arbitrage and flash loans

is that the trader is allowed to perform a transaction

without having any financial position. A trader can take

a flash loan, trade on two different cryptocurrency exchange

platforms, and then settle the loan and the interest

all in one transaction. The trader is often shielded

from any volatility perils. However, as much as the risks

of volatility are being evaded, the trader is always at the

full glare of the conditions of the smart contract, which

they might not understand fully.

2.3 Decentralized Exchanges

(DEXs)

The development of decentralized exchanges (DEX)

is one of the most consequential milestones ever

achieved in the crypto trading world. DEX allows

any cryptocurrency trader to carry out their transactions

without needing to be managed by a central

oversight body. DEXs enable traders to carry out

business with one another directly without all of the

implications of having to be managed by a central

authority. The peer-to-peer transactions are not in

any way under the control of the individual platform

owners. With DEX, traders are not vulnerable to the

actions of the platform operators, as it is the case

with centralized exchanges, which are fraud hotspots.

DEXs support all cryptocurrency activities, including

flash loans and arbitrage trading, which are done via

decentralized applications (DApps). The DApps operate

under strict adherence to smart contracts.

There is no need to understand how smart contracts

work, on which the Entereum blockchain is based.

The trading process has further been simplified through

the development of our platform, which will automatically

allow users to deploy smart contracts that will

seek the best arbitrage opportunities for traders and

allow them to stake on them. The scanning employs

the best accuracy and efficiency in the entire process

as it constantly scans every 1-2 blocks for price changes.

Once the best opportunities have been found, the

smart contract executes a flash loan call and executes

the arbitrage trade within the same transaction.

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DEXs are generally more effective because they do

not include the services of brokers standing between

transactions. They are also more immune to malicious

attacks and are cheaper and faster, hence enhancing

the user experience to a great degree.

Clearly, all the operations are tied down to smart contracts

in one way or the other. This poses a very serious

challenge to the traders, especially those that do not

have considerable knowledge of their operation. Consequently,

many of these traders opt not to engage in

peer-to-peer transactions or get very unsure and end up

messing up the whole process. For a fact, many crypto

traders are not well versed with the technicalities and

the provisions of the smart contracts, the terms and

repercussions.

3. Why

Ethereum

Blockchain?

Ethereum blockchain scores better than any other

blockchain. First of all, the Ethereum blockchain is utterly

decentralized. This means that crypto traders using

it reap from all the benefits of DEXs. Additionally,

this makes it rock-solid for any third party to interfere

with the operations of traders and users, their data, or

digital assets. With a decentralized mode of operation,

the Ethereum blockchain can hardly fail under the vast

majority circumstances. The systems are always up

and alert.

A big plus for the Ethereum blockchain users is that it

executes smart contracts promptly. It is irrefutable that

rafts of Ether cryptocurrency trading activities are dependent

on smart contracts. The chief gain from the

employment of smart contracts is that it makes peerto-peer

transactions more manageable and cheaper, in

the sense that there is no legal assistance or involvement

required. In this way, transactions are swift, convenient

and risk-free.

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4. Introducing

Yearn Flash

Loan Arbitrage

Finance (YFRB)

Yearn Flash loan arbitrage (YFRB) is a utility token that

leverages multiple DeFi platforms to allow users to do

instant arbitrate trades with flash loans. Apart from

providing utility tokens, it is also focused on allowing

our users to effortlessly acquire flash loans from various

platforms and utilize them on arbitrary trading.

4.1 Objectives of Yearn Flash

loan arbitrage (YFRB)

A demonstration of the pre-MVP (Minimum Viable Product)

can be looked at via the link where we scan for trading

opportunities between Kyber network and Uniswap:

Pre-MVP Demonstration, click here

Lastly, YFRB works towards attaining the equality of all

the YFRB token holders. There are significant gaps between

traders regarding their understanding of smart

contracts. When new traders are introduced to smart

contracts, they can easily be discouraged despite them

having a colossal trading potential. YFRB has made

this look and feel so comfortable and straightforward

for every trader regardless of their technical knowledge

on automated smart contracts. All that is required is to

deploy your smart contract through our platform.

5. Why Choose

YFRB?

The main objective of YFRB is to provide traders a platform

that will allow them to create their own smart

contracts. Then they can use these smart contracts to

access and use flash loans from across the Ethereum

blockchain platforms effortlessly. With the YFRB platform,

traders can get flash loans from leading issuers

such as Aave and dYdX. These flash loans gained by

YFRB token holders can then be used to seek arbitrary

opportunities.

YFRB favors all traders, even novices. All the technical

processes are covered in the background, enabling

traders to utilize an easy to navigate user interface to

execute arbitrage trades.

6. Staking

On top of that, YFRB is also concerned with making

the process of seeking arbitrary opportunities very

easy and seamless. In light of this, YFRB is developing

scanning tools that will keep the user updated on the

pricing and profit ratio from different DEX’s. Using this

tool, YFRB token holders will be relieved of the hassle

of making manual comparisons that are prone to a lot

of inconsistencies. Once an optimal price variation is

found, the flash loan acquisition process is initiated

and trade between the DEX’s is occurred.

For staking details, we are running in tandem to release

details before the staking tokens get unlocked.

The whitepaper isn’t a finished

product, we will be updating it

as we move forward.

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7. Roadmap

Q3

Presale

MVP Scan Demonstration

Q4

Web3js Integration for Web UI

Development of MVP

MVP Release

Flash Loan Arbitrage Platform Launch

Staking

Triangular Arbitrage

Q1

To be established


Connect with us

Telegram: t.me/yfrb_finance

Twitter: twitter.com/yfrbfinance

Discord: discord.com/invite/9etTxx4

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