Fantasm Finance — a DeFi project, aiming to develop and popularize synthetic tokens for multiple L1 ecosystems. You can find out the price of an FTM or AVAX token without actually owning it.
With the Fantasm Finance protocol, the developers are presenting a decentralized solution by applying a semi-collateralized design, where Fantastics synthetic tokens are partially backed by the L1 token and partially by the native token.
FTMX — a fractional algorithmic synthetic token, pegged to the value of 1 FTM in Fantom Opera. The protocol aims to maintain the price stability of the FTMX token, in other words, the peg, by storing sufficient collateral in time-locked smart contracts. This collateral is used for repayment, helping to maintain price stability.
FXM — a protocol utility token (on Fantom Opera) that also rewards its holders with 100% of protocol fee income. An FTM token is logged when a user creates an FTMX token, and the FXM token that is used to create it is burned.
When a user redeems FTMX tokens, the protocol returns FTM tokens and mints the required number of FXM tokens. The ratio of FTM and FXM tokens, used by the Mint and Redemption feature of the Fantasm protocol, is determined by the collateral ratio. These mechanisms are described in more detail with examples on the following pages of our documentation.
Fantastic Protocol uses a Collateral Ratio (CR) for the minting and redemption process. There is a minimum collateral ratio, set by management.