🅾️oTokenomics

oTokenomics represents a groundbreaking concept within FFC's DeFi ecosystem, embodying our dedication to innovation and stability in decentralized finance. Specifically designed to address challenges such as token devaluation and incentive misalignment for Liquidity Providers (LPs), oTokenomics aims to establish a sustainable alignment of user and protocol interests.

Benefits of oTokens

oTokens offer a plethora of advantages:

• Reduced Selling Pressure on FFC: oFFC tokens can be exchanged for FFC at a discounted rate, alleviating sell-off pressures.

• Boosted Liquidity: Encourages LPs to lock rewards into the FFC-ETH pool, amplifying liquidity.

• Sustainable APRs: Maintains consistent and sustainable Annual Percentage Rates (APRs) due to the positive impact of oFFC on the FFC-ETH pool.

Call Options

oFFC tokens empower LPs with strategic choices:

• Purchase FFC with a Discount:

  • Mechanism: Exchange oFFC for FFC at a dynamic Discount Rate.

  • Benefits: Capitalize on FFC's market value for potential immediate profits.

• Convert to vFFC:

  • Mechanism: Convert oFFC to vFFC at a discounted rate.

  • Benefits: Gain voting power in governance and a share in trading fees and rewards.

• Redeem for FFC-ETH LP:

  • Mechanism: Redeem oFFC for FFC-ETH LP tokens with a dynamic discount based on lockup duration.

  • Benefits: Direct investment into FFC-ETH pool at a reduced rate, enhancing LP yield.

• Sell oFFC on the Open Market:

  • Key Consideration: The discount rate may vary; market dynamics usually align oFFC prices with FFC discounts, but discrepancies can lead to less favorable rates. This volatility presents both opportunities and risks.

Revenue Distribution from Discount Rates

Revenue from 'Discount' rates is strategically allocated to enhance the FFC ecosystem:

• A portion is redistributed to top-performing gauges/pools, benefiting vFFC voters.

• The remainder bolsters the treasury for future growth. These allocations are subject to market dynamics and community voting.