FXM Token Utility

FXM is the protocol utility token (on Fantom Opera) that also rewards its holders with 100% of generated protocol fee revenue.

The FTM token is deposited into the protocol when a user mints FTMX token, while the FXM token which is used for minting is burned. When the user redeems FTMX tokens, the protocol pays back FTM tokens and mints the required amount of FXM tokens.

The ratio of FTM and FXM tokens used by the minting and redeeming function of the Fantasm protocol is determined by the Collateral Ratio. These mechanisms are described with examples in more details in the next pages of our documentation.

Token Utility

FTM and FXM Revenue

Each minting and redeeming of synthetic assets like FTMX on Fantasm incurs a 0.30% and 0.50% fee, respectively. These fees are distributed as FTM and FXM dividends to users who lock their FXM on the platform.

Capital Efficiency

The capital required to mint FTMX is only partially denominated in FTM. The remaining portion is denominated in FXM, which is required as collateral. This requirement creates both a natural demand for FXM, as well as captures value.

New Fantasm Synthetic Assets (Roadmap milestone)

Equals more utility and liquidity for FXM token holders because FXM will always be a key ingredient in minting synthetic tokens.

DeFi Integrations (Roadmap milestone) Adoption and integration of Fantasm synthetic assets with other DeFi projects to develop and unlock new trading strategies (derivatives trading, leveraged trading/farming, other exotics)

Early Exit Penalty Revenue Besides FTM and FXM revenue for users who stake their FXM, stakers also earn 50% of the penalty fee from FXM/FTM and stable pool farmers who claim their rewards early.