> For the complete documentation index, see [llms.txt](https://fantasm-finance.gitbook.io/fantasm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fantasm-finance.gitbook.io/fantasm/mechanisms/protocol-owned-liquidity.md).

# Protocol Owned Liquidity

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

{% tabs %}
{% tab title="Fantom" %}
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.&#x20;

We will monitor and fine-tune the POL parameters as needed.
{% endtab %}

{% tab title="Avalanche" %}
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.&#x20;

We will monitor and fine-tune the POL parameters as needed.
{% endtab %}
{% endtabs %}
