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  1. Mechanisms

Protocol Owned Liquidity

PreviousFlash Loan ProtectionNextZap Feature

Last updated 3 years ago

Protocol Owned Liquidity ("POL") has been an extremely popular term in DeFi since 2021, mostly thanks to . Fantasm Finance wants to explore and adopt the latest DeFi innovations, including a Protocol Owned Liquidity feature closely related to our Minting mechanism.

In Fantasm Fantom, when minting FTMX, 0.5 x (1 - CR%) of FTM invested is used to buy back FXM. Then the protocol has both FXM and FTM tokens available to add liquidity for the FXM/FTM LP.

We will monitor and fine-tune the POL parameters as needed.

In Fantastic Avalanche, when minting fAVAX, 0.5 x (1 - CR%) of AVAX invested is used to buy back SNOWY. Then the protocol has both SNOWY and AVAX tokens available to add liquidity for the SNOWY/AVAX LP.

We will monitor and fine-tune the POL parameters as needed.

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