Protocol Owned Liquidity
Protocol Owned Liquidity ("POL") has been an extremely popular term in DeFi since 2021, mostly thanks to Olympus. 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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