❓FAQs

Your Quick Guide to FFC Coin's Features and Governance

What is FFC Coin?

FFC Coin is a decentralized exchange (DEX) and liquidity marketplace on the FFC blockchain. It offers features like token swapping, liquidity provision, and a unique gauge voting system for vFFC token holders, enhancing trading revenue and influencing the platform's direction.

What makes FFC Coin unique on the FFC blockchain?

FFC Coin stands out as the native liquidity layer for FFC, designed to solve the 'cold start liquidity' problem for new protocols and provide established projects with sustainable liquidity incentives. Its integration of Automated Liquidity Management (ALM) and concentrated liquidity pools offers enhanced efficiency and profitability.

How does FFC Coin’s Automated Liquidity Management (ALM) work?

ALM in FFC Coin allows liquidity providers to adopt a 'set-and-forget' strategy, where Automated Liquidity Managers compete to offer the best returns and impermanent loss protection, enabling users to maximize returns effortlessly.

Can you explain FFC Coin’s gauge voting system?

FFC Coin employs a gauge voting system inspired by Curve Finance, where vFFC token holders vote on the allocation of emissions among liquidity pools. This democratic approach allows token holders to directly influence the platform’s revenue distribution.

What is concentrated liquidity and how does it benefit FFC Coin users?

Concentrated liquidity allows users to allocate their capital within selected price ranges, maximizing fee earnings when asset prices are within these ranges. It leads to higher capital efficiency, better trade execution, and potentially higher returns for liquidity providers.

What are the risks associated with providing liquidity on FFC Coin?

While FFC Coin offers innovative solutions to optimize liquidity provision, risks such as impermanent loss and market volatility remain. The platform addresses these through ALMs and tailored liquidity strategies, but users should be aware of these inherent risks.

How does FFC Coin support smaller protocols and new projects?

FFC Coin focuses on reducing entry barriers for smaller protocols by consistently analyzing market dynamics. This inclusive approach encourages broader participation and supports the growth of emerging projects in the DeFi space.

What are oFFC tokens, and how do they work?

oFFC tokens are part of FFC Coin’s innovative tokenomics, distributed to liquidity providers as the emissions token. Each oFFC has strategic options for LPs to exercise like purchasing FFC at a discount, converting to vFFC, or redeeming for FFC-ETH LP tokens. This system aims to reduce selling pressure on FFC and boost liquidity.

Can anyone participate in FFC Coin's governance?

Participation in governance is open to vFFC holders. By locking FFC tokens to receive veFFC, users gain voting power in governance decisions, including gauge voting and protocol improvement proposals.