What Is Structure Finance (STF)?
Structure Finance is a blockchain-based platform for structured financial products on the DeFi ecosystem. Structured financial products are created to provide individual traders with a streamlined user experience. The platform seeks to be a stand-alone solution and one that can be smoothly integrated into existing DeFi protocols. The Structure Finance platform also aims to deliver structured financial products to the broader market.
Structure Finance makes simple tools to develop structured financial products using cryptocurrency. According to the whitepaper, the platform has two products that offer users new trading and hedging alternatives against volatility risk: Double No-Touch Options (DNT) and Straddle Options.
Double No-Touch Options (DNT): The double no-touch options support significant cryptocurrencies. The DNT token can be purchased by users, representing a risk against volatility.
Straddle Options: A straddle is a neutral options strategy in which a user can purchase both a put and a call option for the same underlying securities with the same strike price and expiration date at the same time.
As the layer one protocol, Structure.Finance is built on Ethereum and Binance Smart Chain. These two base layer protocols are dynamic ecosystems in the DeFi market, with several users and value accrued. Structure.Finance protocol is compatible with Ethereum Virtual Machine (EVM) and can be interoperable with standard DeFi apps. The EVM is a computation engine that functions as a decentralized computer with millions of projects to execute.
STF is the native token of the Structure Finance platform that provides platform incentives and decentralized governance. The Structure.Finance platforms use STF as their default currency. STF might be used to pay transaction fees and purchase option products. Transaction fees are collected and put into a reserve, distributed through decentralized governance.
Token incentives are offered in STF to encourage users to lend their assets. The platform governance is decided by the token holders collectively. Several factors, such as fee structures, collateral ratios, and guiding on protocol and blockchain integration decisions, can be influenced by holders.
History of Structure Finance (STF)
Structure Finance was released on the BSC platform in 2021. The platform deployed new pay-offs like cryptocurrency accumulator and knockout/knock-in barriers in the same year.