The team is available in the Discord to answer questions, so please reach out if they're not answered here!
Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions and taking note of the risks and responsibilities associated with participating in Platinum Finance.
Let’s break down the potential impact of PLAT’s long-term success on Fantom ecosystem as a whole:
- 1.First, FTM serves as native token on Fantom Network. FTM token itself has a fixed maximum supply of 3.175 billion FTM.
- 2.The main utility of the FTM token on Fantom is to secure the network via a Proof-of-Stake system.
- 3.To participate, validator nodes need to hold a minimum of 3,175,000 FTM and stakers need to lock up their FTM. In return for the service, both the nodes and the stakers are rewarded with epoch rewards and fees.
- 4.At the time of writing this, 2.1 billion FTM are currently in circulation, the remainder is reserved for staking rewards.
- 5.The FTM tokens distributed as rewards to both nodes and stakers will continue to increase in number in order to sustain the network growth.
- 6.So, for Fantom to continue running as the fastest, most secure, and most cost-effective blockchain, both nodes and stakers need to continue its FTM token remaining staked and locked up.
- 7.If the rewards stay at the current APR (change from to time), it will take more than 2 years to distribute all the rewards and to reach a full circulation of the total supply and all the tokens token together will never exceed the total supply of 3.175 billion FTM.
- 9.If PLAT succeeds in holding the peg, this will create a mirrored, liquid asset that can be moved around and traded without restrictions while benefiting from the price appreciation of the native token - FTM.
- 10.Reaching the peg and holding the peg is crucial and this will ultimately be what drives the value of PLAT for investors.
- 11.In the short term, this would mean attractive APR for liquidity providers on what would essentially be a stable pair.
So once a liquid market is the norm, what happens next? What are some other reasons you’d want to hold PLAT?
- 1.PLAT aims to become one of the primary utility token of the Fantom ecosystem.
- 2.Our first step is to set up our incubator and launchpad where we empower selected crypto currency projects to raise liquidity, distribute tokens and assist the launching project every step of the way.
- 3.The selection, development and deployment of the next generation of Fantom DeFi projects will be decided by those who hold PLAT and SPLAT's governance token.
- 4.And we're just getting started...
Here is an example:
Let say the dollar is the world's main medium of exchange and everything is measured in terms of dollar regardless of whether that's our weekly salary, the price of bread or computer. We need dollars to buy literal gas to get to the bakery or computer store.
But imagine if we do not want to use our dollars and prefer to keep them under our mattresses instead...
Since the value of everything gravitates in relation to the dollar, there would need to be something out there that is 1:1 interchangeable with the dollar so that even if all the dollars in the world are tucked under mattresses, we can still be able to transact freely.
Knowing that whatever we received would be able to be traded in for a dollar at whatever point in time they desired. That's what PLAT hopes to become for FTM (represented as "dollar" in the above example).
Yes! Let's take an example: If FTM pumps in price, it won't 'outrun' PLAT. The APR will vary in terms of its USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the USD value is directly tied to the emissions. If FTM rises in USD value, PLAT goes with it. Same if FTM falls in USD value, PLAT will be worth less in USD, but it won’t affect the peg. The only thing that can change the price of PLAT in terms of its FTM value is buying and selling it.
It is for education and entertainment purposes only.
Never put all your funds in one basket even for PLAT. Always take gains along the way. Don't get too greedy! Our team views it as a success if everyone gets their initial investment back into their wallets overtime and continues investing with the profits that come after that. Always proceed with caution!
Fantom Defi Projects involve significant risks and users should manage risks accordingly. For example, users should only put in what they are willing to lose. DO NOT invest your life savings and DYOR before diving into Defi Projects!
There are countless strategies. Which one you choose depends on your risk tolerance and financial goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way.
Liquidity pools are essentially pools of tokens that are locked by a smart contract. The main purpose of these pools are to help provide liquidity and facilitate trading on exchanges. They do this by giving users of the exchange a means to buy and sell.
As such, liquidity pools are used by Automated Market Markers (AMM) to minimize drastic price changes (volatility) on crypto exchanges. This characteristic makes liquidity pools ideal for new coins or tokens that do not have a large user base. Please refer to How to EARN SPLAT for guidance.
If PLAT is OVER the peg (1.01 TWAP):
- 1.Buy PLAT and pair it with FTM to provide liquidity
- 2.Stake PLAT-FTM LP in the farm to earn SPLAT rewards
- 3.Claim SPLAT rewards and stake them in Staking page to earn inflationary PLAT rewards.
- 4.Sell 50% of earned PLAT for FTM and compound it back into the PLAT-FTM LP.
- 1.Buy or use the farmed PLAT in Staking page and exchange it for PBOND in BONDS room.
- 2.If you are providing LP (PLAT/SPLAT-FTM LP), burn the LP and exchange both tokens (PLAT/SPLAT & FTM) for PBOND.
- 3.Sell PBOND for PLAT at a premium rate once PLAT is back above the peg.
*Rationale: Help to bring PLAT back above the peg so that the Staking page can resume printing PLAT.
Here is the method:
- 1.Providing LP (PLAT/SPLAT-FTM LP) for PLAT rewards.
- 2.Sell 50% of earned PLAT for FTM.
- 3.Deposit PLAT-FTM LP using the remaining 50% PLAT rewards and the 50% FTM you've just purchased.
By boosting liquidity using 50:50 strategy, the size of the LP pool becomes larger which reduces price volatility of the underlying assets. This helps PLAT stay above the peg for longer to keep the Staking page printing PLAT.
This, in turn, attracts new investors and keeps the ecosystem growing.
*Rationale: provide stability for both the platform and your underlying investment.
The higher the TVL in the pool, the lower the APR will be as there are more people sharing the same piece of the pie. BUT, the higher the price of the rewards - SPLAT (the pie), the higher the APR (better quality of pie) will be.
In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.
The APR shown in the Farm is linear and it prints 24/7 regardless of PLAT's relation to the peg. Whereas, Staking prints only when PLAT's TWAP is above 1.1 (above the peg). Therefore, it may not always be that an investor gets a higher return from the Staking than from the PLAT-FTM LP Pool.
*Note: PLAT follows the price of FTM, PLAT-FTM LP is akin to holding FTM in your wallet, except with the bonus of a high farming APRs on top of it. In other words, if you're bullish on FTM's price action, the PLAT-FTM LP is a way of holding exposure to that single asset while also reaping high APRs.
Staking either PLAT/FTM or SPLAT/FTM LPs in these vaults rewards you with more of the same LP tokens that you have deposited.
Here's the method:
- 1.Deposit your LP tokens in Farm on Platinum Finance.
- 2.Harvest SPLAT that you’ve earned every set amount of minutes.
- 4.Deposit those LP tokens back into Platinum Finance pool to grow your allocation.
*Note: Both the PLAT/FTM LP and SPLAT/FTM LP pools pay rewards in SPLAT. If you’re in the SPLAT/FTM pool, 50% of your SPLAT rewards are sold for FTM each time for auto-compounding. If you’re in the PLAT/FTM pool, 100% of your reward is sold and used to purchase 50% PLAT and 50% FTM for auto-compounding. Thus, unlike the PLAT/FTM vault, SPLAT/FTM vault does not put any buy pressure on PLAT.
As mentioned above, if you are in a PLAT-FTM LP auto-compounding vault, you are creating buy pressure on PLAT.
If you are in a SPLAT-FTM LP auto-compounding vault and you also hold SPLAT elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling SPLAT.
In order to successfully maintain the peg in the long run, our team focus on enhancing the utility of PLAT token by collaborating with various Yield Optimiser such as Beluga Finance, Beefy and etc. and depositing our LP vaults for vault's yield.
When PLAT is pegged or close to being pegged to 1 PLAT : 1 FTM, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.
- Epoch duration: 6 hours.
- Deposit/Withdrawal of SPLAT into/from the Staking will lock staked SPLAT for 6/3 epochs and rewarded PLAT for 1 epoch.
- PLAT rewards claim will lock staked SPLAT for 3 epochs and the next PLAT rewards can only be claimed 1 epoch later.
- Any time tokens are harvested / deposited / or withdrawn, the lockup timer gets reset.
- Distribution of PLAT during Epoch Expansion:
- 87% as Reward for Staking's SPLAT Stakers8.7% goes to Treasury vested over a period of 150 days4.3% goes to core teams vested over a period of 150 days
- Epoch Expansion: Current expansion cap is based on PLAT's supply. *If there are bonds to be redeemed, 65% of minted PLAT goes to Treasury until it's sufficiently full to meet bond redemption. If there is no debt (PBOND), it will follow maximum capped expansion %.
Yes. Once the max supply of SPLAT (80,501) is reached, emissions stop. This is going to be in a year from when the SPLAT farms start. SPLAT will still print PLAT in the Staking as long as PLAT is above the peg.
In Farm page, Staking SPLAT will give you PLAT rewards when the price of PLAT is above the peg (1 PLAT > 1 FTM), but not when it is under the peg.
Any interaction with the Staking will reset the timers. That is 3 epochs (18 hours) to withdraw your PLAT rewards and 6 epochs (36 hours) to unstake your SPLAT.
No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.
Simplified example for a non-debt phase:
Let's say you have 1 SPLAT staked out of 10 total SPLATs staked in Staking page, so you will get 10% of the total SPLAT emissions.
So, for this example we are assuming that there is a total circulating supply of 10,000 PLAT, the current expansion rate is at 4%, and therefore, 400 PLAT will be emitted. You would get ((0.04 * 10,000) * 0.87) * (1/10) = 34.8 PLATs. *Recap*
With current regulations, this is the distribution breakdown: -87% of printed PLAT goes to SPLAT stakers -8.7% goes to Treasury Fund -4.3% goes to core teams with a 3-month vesting period
Formula to calculate your rewards is shown below:
Rewards = ((Expansion % x CirculatingPLATSupply) x 0.87) x (YourSPLATStake/TotalSPLATStaked)
This will vary constantly as the APR in the Staking fluctuates, along with other variables such as the price of PLAT.
For a quick estimation, however, you can do the following:
- 1.Take the total APR shown in the Staking and divide that by 365 to get the daily APR. (For example, let's say the Daily APR is 5%.)
- 2.Multiply the Daily APR by the current market price of the total SPLAT you have staked to see what your daily rewards are. (For example example, you have 5 SPLAT, each worth $500, for a total amount staked of $2,500. Your daily return is $2,500 x 5% = $125 per day.)
- 3.Take your initial buy-in price for SPLAT and divide it by your daily rewards. (For example, if you bought these 5 SPLAT at a higher price of $700 each. In the current market condition, you will recover your initial investment of $3,500 in 3,500 / 125 = 28 days.)
No, it will still be there for you to collect.
A debt phase takes place on the expansion epochs that start after a contraction period where there are still PBOND to be redeemed.
65% of expansion during Debt Phase is allocated to the Treasury Fund to prepare for the PBOND Redemption. This amount is still reserved whether or not PBOND holders are redeeming bonds or not.
Once PLAT in the Treasury Fund is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.
The Debt Phase will last as long as is necessary to adequately pay back outstanding PBOND debt. Please keep in mind that the DAO will also need to collect a little extra as there needs to be a cushion to cover the bonuses when people redeem PBOND when PLAT is over the peg. There's no exact way of calculating how many epochs it takes since we don't know exactly when people will redeem their PBOND. If the Debt Phase ended too early and the Treasury Fund doesn't have enough PLAT to repay the PBOND debt, then the APR restriction would need to be turned back on.
There is a balanced state "at peg" when PLAT's TWAP is between 1.00 and 1.01 which means there is neither contraction nor inflation.
Depending on the price of PLAT, the Staking page printing will have to adjust to provide a buffer for any unclaimed PBOND. As the price of PLAT climbs above the peg, more PLAT needs to be distributed to the Treasury to account for PBOND bonus redemption.
PBOND is a unique token that can be utilized to help stabilize PLAT price around peg (1 FTM) by reducing the circulating supply of PLAT if the TWAP (time-weighted-average-price) goes below peg (1 FTM).
PBOND (bond token) will only become available for purchase in the Bond following epochs in which the Time Weighted Average Price (TWAP) of PLAT is under peg (contraction periods). This means that PLAT price will have to be under 1 FTM per 1 PLAT for the majority of the previous epoch in order to trigger the Bond to open for purchase. If PLAT's TWAP is between 1.00 and 1.01, neither PBOND nor PLAT will be issued.
For example, if PLAT TWAP < 1, exchange PLAT for PBOND will be in a 1:1 ratio.
Every new epoch on contraction periods, PBOND will be issued with minimum of 3% of PLAT's current circulating supply and a maximum debt amount of 35%. This means that if PBOND reach 35% of PLAT's total circulating supply, no more PBOND will be issued.
Note: PBOND TWAP (time-weighted average price) is based on PLAT price TWAP from the previous epoch as it ends which means that PLAT TWAP is real-time, PBOND TWAP is not.
The Bond will always open at the very beginning of a new epoch and remain open for the entire epoch. The Bond can not and will never open mid-epoch and during epochs in which the Bond is open, PLAT will not be printed in the Staking.
You can buy PBONDs (if any), on the Bond page. Anyone can buy as many PBOND as they want as long as they have enough PLAT to exchange for.
Note: There is a limit amount (3% of PLAT's current circulating supply) of available PBOND per epoch while on contraction periods and PBOND is sold on first come first serve basis.
To encourage redemption of PBOND for PLAT when PLAT's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, PBOND redemption will be more profitable with a higher PLAT TWAP value. PBOND to PLAT ratio will be 1:R, where R can be calculated in the formula as shown below:
To further illustrate why the longer you hold PBOND the more profitable it is.
Let's take an initial $1,000 investment into consideration. In this example, let's say this $1,000 is used to buy PLAT when PLAT TWAP is 0.95 and then swapped for PBOND. If these PBOND are redeemed when: -PLAT TWAP is 1.5, your investment would now be worth $1,421. -PLAT TWAP is 2, your investment would now be worth $1,789. -PLAT TWAP is 3, your investment would now be worth $2,526. -PLAT TWAP is 5, your investment would now be worth $4,000.
You can swap it back again when the following 2 conditions are met:
1: PLAT TWAP is above the peg (>1.1); AND
2. There is enough PLAT in the Treasury to cover the redemption.
First, the most important reason is that buying PBOND helps maintain the peg but it will not be the only measure used to keep the protocol on track.
Like anything else in crypto, obtaining PBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future.
To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes. PBOND does not have an expiration date on redemption, hence, it is ideal for those with a medium to long-term time preference as it *incentivizes hodlers in exchange for potentially extremely lucrative rewards! If you are looking for a quick flip or have short-term time preference, PBOND may not be the right investment option for you.
The incentive is to reward PBOND buyers for helping and protecting the protocol from being manipulated by whales.
So after investors buy PBOND using PLAT, there are 2 possible ways to get PLAT back:
- 1.Sell back PBOND for PLAT while peg is between 1 - 1.1 FTM with no redemption bonus. This is to prevent instant dump of PLAT after peg is recovered
- 2.Sell back PBOND for PLAT while peg is above 1.1 FTM at premiums
Note: The longer you hold, the more both the protocol and you benefit from PBOND.
Scenario 1 : When PLAT = $0.8, burn 1 PLAT to get 1 PBOND (PBOND price = $0.8 x 1 = $0.8)
Scenario 2 : When PLAT TWAP = $1.15, redeem 1 PBOND to get 1.105 PLAT (PBOND price = $1.15 x 1.105 = $1.27)
So, which one is better?
If investors buy PLAT at $0.8, hold it until PLAT = $1.15 and sell, there will be an incentive of $0.35 ($1.15 - $0.8) per PLAT.
But if investors buy PLAT at $0.8, burn it for 1 PBOND and redeem 1.105 PLAT at $1.15, there will be an incentive of $0.47 ((1.105 x $1.15) - $0.8) per PLAT.
So, now, you should understand the whole point of buying PBOND.
We are going to adjust our use cases in order to have different behaviors on contraction and expansion periods to benefit PLAT and PBOND holders when needed!
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $100x(1+((0.03*365)) = $1195.
After 365 days, compounding once daily: $100x(1.03)^365 = $4,848,272.
An expansionary epoch is the amount of PLAT that is printed by staking SPLAT in order to increase the total circulating supply of PLAT.
To simplify the explanation with a hypothetical example, let’s say an epoch is 6 hours long, there are 7,000 PLAT in the circulating supply and 100,000 SPLAT staked.
The investor is currently holding 100 PLAT and has 1,000 SPLAT staked.
If the emission rate is 2% based on the existing circulating supply, at the end of first epoch he/she will have 100 + (7,000 x 1.02 x 87% x (1,000/100,000)) = 162.12 PLAT
Let’s say the emissions decrease to 1.5% as the total PLAT's circulating supply reached 15,000 PLAT and there is no change on his/her shares % of SPLAT, he/she will then have:
153.55 + (15,000 x 1.015 x 87% (1,000/100,000)) = 286.01 PLAT at the end of second epoch.
In contraction period, Staking will not mint any PLAT (NO REWARDS give on Staking) while TWAP < 1.
Debt Phase takes place on the expansion epochs that start after contraction period where there are still PBOND to be redeemed.
65% of Expansion during Debt Phase is allocated to the Treasury to prepare for the PBOND redemption. This amount is still reserved regardless of whether or not PBOND holders are redeeming.
As mentioned previously, once PLAT in Treasury is sufficiently full to meet all the circulating bond redemption, expansion rates will resume to normal. If there is no debt (PBOND), it will follow maximum capped expansion %.
Next Seigniorage indicates a countdown timer to the next epoch. (Each epoch duration lasts for 6 hours)
APR refers to the simple returns in USD value relative to the amount of SPLAT staked (USD value).
Note: APR fluctuates from time to time and is dependent on certain factors such as:
- Price of PLAT
- Price of SPLAT
- Amount of SPLAT staked in the Staking (Locked Value)