Fantasm
  • About Fantastic Protocol
  • Synthetic Tokens
  • Fantastic Roadmap
  • Cronastic - Cronos
    • GAEA
      • GAEA Token Utility
      • Allocation
      • Liquidity mining (Farms)
      • Staking and Locking
    • Contracts
  • Fantastic - Avalanche
    • SNOWY
      • SNOWY Token Utility
      • Allocation
      • Emission
      • Liquidity mining (Farms)
      • Staking and Locking
    • Contracts
  • Fantasm - Fantom
    • FXM
      • FXM Token Utility
      • Allocation
      • Emission
      • Liquidity mining (Farms)
      • Staking and Locking
    • Contracts
  • Mechanisms
    • Collateral Ratio
    • Minting and Redeeming
    • Price Stability
    • Flash Loan Protection
    • Protocol Owned Liquidity
    • Zap Feature
  • Other
    • Audit & Security
      • Audit
      • Bug Bounty Program
    • FAQ section
    • Socials
    • Getting started on Fantom
      • Setup Metamask
      • Bridge to Fantom
      • Faucet
    • Brand Assets
      • Fantasm Brand Assets
      • Snowy Brand Assets
  • v1 - retired
    • FSM
    • v1 Contracts
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  1. Mechanisms

Price Stability

The main pillar of price stability comes from the possibility of redeeming FTMX token for the value of FTM. In other words, FTMX is 1:1 pegged to the price of FTM.

Another mechanism to support the price peg is the arbitrage opportunity offered by the minting and redeeming functions.

FTMX is under peg

If the value of FTMX token is less than the value of 1 FTM, then anyone can purchase it on the open market and redeem it for approximately the value of 1 FTM worth of value when there is a profitable arbitrage opportunity.

FTMX is over peg

If the value of FTMX token is more than the value of 1 FTM, then anyone can mint it with the protocol for approximately the value of 1 FTM worth of value and sell it on the open market when there is a profitable arbitrage opportunity.

The main pillar of price stability comes from the possibility of redeeming fAVAX token for the value of AVAX. In other words, fAVAX is 1:1 pegged to the price of AVAX.

Another mechanism to support the price peg is the arbitrage opportunity offered by the minting and redeeming functions.

fAVAX is under peg

If the value of FTMX token is less than the value of 1 FTM, then anyone can purchase it on the open market and redeem it for approximately the value of 1 FTM worth of value when there is a profitable arbitrage opportunity.

fAVAX is over peg

If the value of fAVAX token is more than the value of 1 AVAX, then anyone can mint it with the protocol for approximately the value of 1 AVAX worth of value and sell it on the open market when there is a profitable arbitrage opportunity.

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Last updated 3 years ago