Collateral Ratio

Fantastic Protocol is using a Collateral Ratio (CR) for Minting and Redeeming process. There will be a minimum Collateral Ratio which is set by governance.

Fantom

The CR is used by the minting and redeeming function and it is displayed as a percentage. This ratio expresses what percentage of FXM token is required to mint or redeem a FTM token.

CR will be adjusted every hour at the step of 0.2% (up or down)

For example: ▶️ 60min-TWAP over 1.005 FTM -> CR down ▶️ 60min-TWAP under 0.995 FTM -> CR up At the beginning, the minimum CR is set at 90%

Avalanche

The CR is used by the minting and redeeming function and it is displayed as a percentage. This ratio expresses what percentage of SNOWY token is required to mint or redeem a AVAX token.

CR will be adjusted every hour at the step of 0.25% (up or down)

For example: ▶️ 60min-TWAP over 1.005 FTM -> CR down ▶️ 60min-TWAP under 0.995 FTM -> CR up At the beginning, the minimum CR is set at 90%