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Own our future with Reality Cards

· 3 min read
reality cards and float capital
Reality Cards is allowing users to own the future of Float Capital.

Hey legends.

At Float Capital we're on a mission to give you exposure to the greatest assets in existence.

When we run out of assets, we create more for you.

Now you can get exposure to the hottest asset in DeFi: FLOAT CAPITAL!

The wizards over at Reality Cards are launching a Float Capital market that will allow you to predict our Total Staked Value over the next few weeks.

The market asks: Will Float Capital’s Total Staked Value be above or below $500,000 USD by Monday 1st November 2021 00:00 UTC?

At present our Total Staked Value is just over $180,000. Seems like a stretch, right?

Well, pretty soon we’ll be announcing something huge, that will change the game for DeFi.

So it’s up to you. Will our Total Staked Value sink, or will it float to the moon? To enter head over to the market in the Reality Cards dApp, here.

To play, you 'rent' an NFT from the Reality Cards, corresponding to the outcome you think will win: above or below. You can set the rental price you want, along with an upper limit on how long you want to rent it for. You can take cards from current renters by paying a higher price than them, and they can take them from you by doing the same.

reality cards and float capital nfts

When the market closes, the pool of all the rent, and the $1,000 sponsorship sweetener, will get divided between the winning side, based on how long each person rented the card for. The person who rented it longest on the winning side will get to keep the custom NFT created for the outcome.

Win or lose, everyone who rented will get a unique POAP AND get entered into a POAP Raffle, with a chance to win a share of $1,000 Long Flipp3ning tokens.

Confused? Check out their How it Works page. To make the process as easy as possible, Reality Cards are also offering everyone the chance to make a free 20 USDC bet! To take advantage, join their discord and send the following PM to the ‘RC Tap’ user: !makeitrain -your ethereum address-. You will then have 20 USDC in your Reality Cards account to play with. Please note however this will only work if you have less than 1 Matic in your account.

What are you waiting for? Will we make it, or do you think it’s too far too fast? Head over and rent a card now.

Backtesting the Flipp3ning market: Visualizing market evolution

· 8 min read

Disclaimer: The modelling process below was done ahead of the Alpha launch and so the results will be different to the Alpha Experience

Modelling purpose#

For the Alpha launch, we modelled the evolution of market liquidity under our first market, the Flipp3ning using historical data. This has helped us unlock insights required for fine-tuning the parameters used in the protocol mechanisms.

A useful by-product of this is being able to share the results and insights with the community and future FLT token holders, who will eventually champion the governance of Float Capital DAO.

As one can reasonably expect, the results of the modelling process depend largely on the data as well as the assumptions made - let's talk briefly about them before interpreting the results.


We chose the Flipp3ning as the on-chain asset for modelling, the first market on Float Capital in the Alpha launch. This is a 3x leveraged version of the Flippening, which is calculated as market capitalization of ETH over market capitalization of BTC.

The market movements of ETH and BTC can tend to be quite correlated at times as most outside speculation of crypto does not differentiate between coins, hence the reason for the 3x leverage to increase the volatility of the on-chain asset.

The modelling process runs over 30 days’ worth of data, recorded at an hourly interval; the actual heartbeat (frequency) of price feed in the Alpha and mainnet launch will actually be approximately 5 minutes, so we observed greater volatility in this data than we would observe on the protocol.


Protocol mechanisms#

Float Capital is a peer-to-peer magic internet asset marketplace where each market provides users with the option to take both long and short positions (for more information on Float Capital, click here). Based on the total liquidity on each side (long and short), the one with the less liquidity (the undercapitalized side) will have 100% exposure to price movements and the one with more liquidity (the overcapitalized side) will have exposure equal to the ratio of the undercapitalized side to overcapitalized side (for example, if long has $100 and short has $90, short side will have 100% exposure and long side will have 90/100 = 90% exposure). This floating exposure mechanism ensures that the gains/losses due to price movements are always 100% collateralized in the protocol.

Then you might ask, for a given on-chain asset with a price trajectory, will one side not be greater than the other?

Yes, and hence enter the balancing incentives.

In Float Capital, users who mint positions in the undercapitalized side earn a portion of the yield that is generated by putting the total liquidity locked in the market into AAVE. Users with positions in the overcapitalized side do not receive any portion of the yield. The balance of the yield is sent to the Treasury DAO and will provide price support for FLT tokens that are in circulation (for the Alpha launch, alphaFLT tokens will be issued instead of FLT tokens). This incentivizes the users to balance the markets and hence bring the exposure of the overcapitalized side closer to 100%. This additional yield is calculated using a curve (click here for formula and here for graph). There are further incentives in the form of higher FLT token issuance to users who stake on-chain tokens of the undercapitalized side, but we will cover the fine details of FLT token in another article. In short, the FLT token is a rewards token to incentivise liquidity provision with mechanisms for profit share and price support while also acting as a governance token for the protocol.

Other assumptions#

Given the protocol mechanisms above and the price feeds, we project 2 types of liquidity injections into the system. One is for the initial liquidity that float capital will inject into the system to ensure that the exposure for the users stays as close to 100% for the immediate future (until whales come to play) and the other for the subsequent liquidity that users will inject based on the market movements.

The user liquidity has been further divided into 2 types - performance-based and incentive-based. Performance-based users will assess the recent performance of the on-chain asset in determining whether to enter long or short positions, whereas incentive-based users will assess the excess yield to determine whether to enter long or short positions. The total user liquidity amount is set by multiplying the assumptions for average liquidity per user and the number of users interacting with the protocol.

An initial liquidity of $50,000 was split 50:50 between long and short sides and a total user liquidity of $150 was assumed per time interval.

Results and insights#

50:50 split between performance-based and incentive-based users#


The liquidity on either side remains relatively balanced until the half-way point, as no significant fluctuations of the historical data are observed and the incentive-based users are injecting liquidity to capture the additional incentive and thereby balance the two sides.

Given the large upswing of the Flipp3ning around the half-way point, we observe that the long liquidity starts becoming significantly overcapitalized due to a couple of reasons:

  1. Increase in price of the Flipp3ning transfers liquidity from short to long side.
  2. Upward trend of the Flipp3ning triggers performance-based users to mint long, who are hoping to capture future gains.

At this point, exposure for the long liquidity starts decreasing significantly and the yield share for the undercapitalized (short) side starts increasing from 0, to incentivize users to mint positions in the short side.

20:80 split between performance-based and incentive-based users#


Here we observe a greater tendency towards a balanced market, as a larger portion of users are assumed to inject liquidity to capture the balancing incentives in the protocol.

The benefit of the markets being balanced come in a direct and indirect forms - exposure of the undercapitalized side remains as close to 100% as possible and majority of the yield share is accrued to the Treasury DAO which will provide a price support to FLT tokens issued to users.

The actual percentage of users who inject liquidity into the undercapitalized side will be determined by the relative gain of the balancing incentives to the possibility of impermanent loss in reality.

80:20 split between performance-based and incentive-based users#


A higher percentage of performance-based users will lead to greater divergence from an equilibrium between long and short sides, and this will amplify the balancing incentives for incentive-based users.

An interesting observation is that the exposure curve for 20:80 split and 80:20 split scenarios take on a similar shape around the half-way point when the Flipp3ning experiences a large gain over a short period. If total liquidity in the market is considerably larger than the assumed user liquidity injections, any up/down swings of price will drown out user liquidity injections.

One thing to note is that the modelling process does not consider the higher FLT token issuance for the users who stake on the undercapitalized side yet, which may in practice result in higher rate of reversion towards an equilibrium between short and long liquidity.

Observation of the Alpha experience#

A massive positive is that we can compare the expected experience from the modelling to the Alpha experience!


Straight off the bat, the major difference to the model was that the initial liquidity from Float Capital was $20,000, with $10,000 in long and short at the launch.

But more importanly, only after 6 days since launch, we are sitting with TVL of $160,000+ in the protocol (one of few instances where I'm happy to be wrong about my assumptions).

And the balance between long and short? Drum roll please....

Long side has 100% exposure and short side has 98.73% exposure!

Even though the short side has been DOMINATING since the launch, the balancing incentives have really outdone themselves in balancing the market.


These observations give us some powerful learnings, which can be fed into the next iteration of the modelling:

  1. Predicting liquidity injection into the protocol is difficult, so the best solution may be run Monte Carlo simulations across different liquidity injection levels.
  2. The unmodelled incentive of FLT tokens (alphaFLT in the Alpha) may have a significant influence in incentivizing markets to be balanced.
  3. The overall balancing incentives seem to be really strong, so we may need to assume a higher proportion of incentive-based users.

This piece was researched and written by Woo Sung Dong with data support from Denham Preen and Jon Jon Clark, and editing support from Jason Smythe and Campbell Easton.

Learn more#

If you want to learn even more about Float Capital, you can visit the docs section of our website.

If you want breaking news, memes and announcements, follow us on Twitter.

If you want to join the community, meet the team and get involved in the future of Float Capital, join our Discord.

Float Capital Presents: A New Era of Magic Internet Assets

· 8 min read
apeing in responsibly

The Float Capital Alpha is going LIVE on the Polygon network!

Our official launch party is happening TODAY at 4pm GMT+2 (Friday, 17th Sept '21).

Expect big things. Tell your friends at the bar and library to join us on YouTube, because we'll be taking the Float protocol live to the public for the first time.

Before you embark on this mission and make onchain asset history, this article covers everything you need to know about the Alpha release, including some sneak peeks and degen hints!

To make it simple, we've broken it down into 3 main categories: GENERAL, HYPE and TECH.


What is Float Capital?#

Float is a community governed magic internet asset protocol utilizing novel mechanisms to prevent liquidations, while creating asset markets that scale.

You can use DAI (a USD pegged stable coin) to mint magic internet assets in a few clicks and leave the rest up to the code. Crypto, equities, commodities, forex, specialized assets (the flipp3ning)… we got you.

float capital app

Why use Float Capital?#

Float allows you to very easily hold a wide variety of assets while being simple, safe and efficient. The smooth UX will allow you to effortlessly create a position in a matter of seconds, while not having to stress about Collateralized Debt Positions (CDPs) and liquidations. Our perpetual smart contracts are designed to algorithmically react to market liquidity, ensuring your capital is used efficiently at all times.

How do I use the Float Alpha?#

The Float Alpha is exclusively deployed on the Polygon network to make use of the lightning-quick and near-free transactions. Simply head over to our website,, click the app button and follow the instructions. Bridge funds over to Polygon from Ethereum using the button on the bottom left of your screen.

If you are a web3 native, you'll know what to do. If you're not, don't stress — you can learn everything you need from our beginner's YouTube series here.

Can I get involved with Float?#

Absolutely. Float = Community.

Become an active member of our community and shape the future of the protocol.

Follow us on Twitter and join our Discord to get involved. Share some memes with us and tell us your thoughts about the protocol.

Why are we launching an Alpha?#

We are building an extremely complex product and believe real interaction is now needed to battle test the mechanism, so that we can further improve on aspects of the protocol.

We don't want to try and perfect our tech before ever releasing. That's a recipe for continuous delays and a product that no-one actually ever wants.

We ship fast and iterate. We want to build something that works and that people want. This Alpha is centered around user feedback.

What are the risks of using the Float Alpha?#

There are various different risks at different levels. It is important to understand these before participating in the Alpha.

Please read this article to understand the full list of risks.

As always, we call on all degens to AIR (Ape in Responsibly).

apeing in responsibly


$1,000 Alpha Launch Party + POAP#

The Float Capital Alpha virtual launch party is going down! Join us for the livestream on YouTube here (4pm GMT+2, Fri, 17th Sept '21).

Besides getting this super legendary POAP NFT for attending the historic alpha launch, we are also giving away $1,000 DAI in prizes during the launch party! You'll be able to use these to mint your very first positions in Float. Details for the giveaway will be announced on the call.

apeing in responsibly

Degen trading competition#

You heard right. Eternal glory, bragging rights, and some cold hard crypto are up for grabs to the best trader during our Alpha!

Stay tuned for more details about when this comp is going to kick off, we don't want to leak all our secrets at once.

alphaFLT generation multiplier#

Perhaps one of the least known and most underrated parts about the Alpha launch!

There is an initial 2x multiplier on earning alphaFLT tokens when staking! This multiplier steadily decreases to 1x over 60 days.


Collect 250 GEMS every day when you interact with the Float.


What can you do with your gems?#

Get exclusive profile unlocks, NFTs, trading perks, skins, early access, elite leagues, discord roles, dark mode…

Watch this space…

Legendary NFT drop for $1,000+ positions minted

Yes, yes. The alpha that keeps on giving.

We are going to be dropping a Legendary tier Float NFT to users minting and holding $1,000+ positions during the Float Alpha.

Details are still being finalized, so stay tuned, and hold onto your horses.

Zero fees to various NFT holders#

Who says NFTs and DeFi can't be friends?

In an industry first, we've cross-protocol partnered with Rumble Kong League to give all Kong NFT holders ZERO fees during the Alpha.

Also, a new partnership is coming soon. It may or may not be with an OG NFT protocol that has raised more than $150k for animal conservation.


alphaFLT vs FLT#

We are launching an Alpha to iterate quickly and gain valuable user feedback on the protocol. alphaFLT allows us to release a token with incentives, without committing or locking in to a final tokenomic design for FLT (which will likely change as we gather insights from the Alpha). This is in a similar vein to how we can release the Float Alpha without locking into a final smart contract design and hence allowing us to avoid large amounts of legacy so we can react quicker in future.

What will alphaFLT give you? At a very minimum, alphaFLT will entitle you to a proportional share of the Float Alpha treasury that will be accruing value throughout the Alpha. There are other possibilities which are still being modeled by the team. alphaFLT will initially be non-transferable while liquidity grows.

alphaFLT issuance#

alphaFLT will be issued throughout the Float Capital Alpha phase. Currently 75% of all alphaFLT issued is going to users who stake magic internet assets and provide liquidity. 25% of alphaFLT issuance is accruing to a separate smart contract earmarked for the team, investors, advisors and founders, along with a few other strategic uses.

Importantly, alphaFLT is only ever issued based on the dollar value of your magic internet asset that you have staked, and the length of time which you have staked. Therefore, these tokens are only gradually generated over time as valuable actions occur in the platform.


There are no fees associated with minting, staking or redeeming magic internet assets. The only fees being levied in the Alpha are on unstaking your magic internet assets. This is currently set at 50 basis points or 0.5%. These fees accrue to the DAO treasury contract governed by Float Capital users.

Where to find out more#

As much as we've gone through already, this is only the tip of the iceberg. There are so many interesting things happening under the hood, it's an oasis for economists, computer scientists, mathematicians, financial engineers and statistical scientists.

The best way to understand the nuts and bolts is to join our discord server and simply send a message.


Only deposit money you can afford to lose#

This is a highly innovative and complex protocol that does not exist on any other chains or in any other galaxies. There is an element of risk involved, and it's important you do not invest money that you cannot afford to lose.

Team holdings and positions in the Alpha#

It's important we are transparent. Given we will initially be playing a large role in deciding what becomes of alphaFLT tokens and how it connects with FLT tokens in the future, we want to remain impartial and choose only what is best for the protocol and not for personal gains.

Given this insight, it's important we disclose the following internal trading restrictions: Float team members in their personal capacity should not be staking more than $2,000 of their personal capital initially. This target might change and we reserve the right to increase it. Any alphaFLT that is earned on staked positions over $2,000 will be redistributed in some form to benefit the protocol at large.

Additionally we are also running a team trading competition where every team member has been given $100 to trade. You will notice the protocol was actually deployed and went live on Monday. To ensure a smooth launch and have rigorous testing, we have been using these $100 amounts to test the protocol. Note that we have limited test staking to $1 of capital, over short periods, to ensure no one is earning alphaFLT unfairly ahead of the release.

Learn more#

If you want to learn even more about Float, you can visit the docs section of our website.

If you want breaking news, memes and announcements, follow us on Twitter.

If you want to join the community, meet the team and get involved in the future of Float, join our Discord.

Apeing in Responsibly: Managing risk in the Float Alpha

· 7 min read
apeing in responsibly“Apeing In Responsibly (AIR)” — the practice of depositing a large amount of liquidity in a protocol while understanding the risks. E.g. “Remember to AIR.”

Float is entering the onchain asset space with a new approach for creating magic internet assets that are easy, safe and efficient.

But of course, with great innovation comes a degree of risk. Interacting with any DeFi platform will expose the user to some risk. While Float is designed to remove risks that were previously inherent to onchain asset exposure, some risks are still present. This article explores those risks, so that you can ape on the Float Alpha responsibly.

risk meme

But first, a 30 second float shill#

Float is a community governed magic internet asset protocol utilizing novel mechanisms to avoid liquidations, while creating onchain asset markets that scale.

You can use a stable coin to simply mint a magic internet asset in a few clicks and leave the rest up to the code. Crypto, equities, commodities, forex, specialized assets (the flipp3ning)… we got you.

We are launching an Alpha, as opposed to the full blown Float launch (even though we are audited and well tested), since we are serious about security and the risks posed by using innovative protocols such as ours. An Alpha will give us a chance to better test the protocol and incentives ‘in the wild’ before degens start locking up hundreds of millions of dollars.

Testing at Float Capital#

Before going through the list of risks, it’s worthwhile talking about what we do to minimize risk within Float. The core of this is how we test our protocol code.

We have developed a unique unit testing framework based in ReasonML that meshes testing flexibility and rapid code iteration. This builds on the great work done by Smock for the optimism framework. We are working with the Smock team to release this testing framework as a stand alone library, allowing other teams to improve their smart contract testing.

If you want to learn more about this, you can see a technical walk through of some of the basics here.

apeing in responsibly

Besides really solid testing, we also follow the industry standard peer review code practices, and often meditate on random attack vectors while hiking, dreaming, surfing, cooking or at large family gatherings.

Now, let’s discuss the various risk factors you may encounter while interacting with Float.

Smart contract risk#

Float is serious about smart contract security. In addition to rigorous internal testing, we’ve also deployed three iterative system versions on the Mumbai Testnet over the past five months, which have been used regularly by more than 100 users.

We have also invested good old cash money to get external security experts to review our code. In August we conducted a $50,000 smart contract audit competition with Code 432n4, the results of which we’ll publish soon. Other protocols using Code432n4 include Sushiswap, PoolTogether, BadgerDAO, Convex Finance, and more.

You can read Code 432n4’s piece on the audit here, and browse the contest repo here.

Even in light of the numerous and significant steps we have taken to ensure the smart contracts function safely and as designed, there still remains risk that our code may be exploited by a malicious actor using a novel vector, or just simply break.

Polygon risk#

The Float Capital Alpha will be deployed exclusively on the Polygon network, with more networks to be supported in future. Polygon has various risks that many DeFi thought leaders have been vocal about. Please consider these.

Composability risk#

The Float Alpha deposits all underlying user funds into Aave, a borrowing and lending protocol. While Aave has received many audits and been live in production without incident for a fair amount of time, if Aave were to be exploited, this may have implications for Float. Research Aave, understand the risks of using Aave, and note that the inherent risks of using Aave interact with the risks of using Float.

Centralization risk#

The Float smart contracts are upgradeable. Having upgradeable smart contracts means that the code can change. If we were malicious, rug pulling devs, we could upgrade the contracts and drain funds. Thankfully, our team is publicly known and committed to the growth of DeFi over the long term. Our reputation is worth far more than a rug.

Generally timelocks and multisigs are the two main methods to safeguard against this while maintaining upgradeability, while allowing for swift iteration. While we will utilize these in our main launch, in our Alpha with lower stakes we are not using timelocks or multisigs. This will change as the protocol scales.

Oracle risk#

Historically, oracles have been a significant vector of attacks. Please read this piece if you want to learn more about the risks of using oracles. Our smart contracts heavily rely on oracles, and hence the risks associated with this tech apply to Float as well. To mitigate this risk, Float Capital uses Chainlink as an oracle service provider for our smart contracts. Chainlink is widely recognised as having safe and secure tech, but if exploits are found with their contracts, Float could be exposed as well.

Stablecoin risk#

The Float Alpha will accept DAI as the token to mint assets. DAI is an algorithmic stablecoin that has proven itself a resilient token in the past, surviving the crypto winter of 2018, but please understand the risks associated with this technology.

Financial risk#

Float allows you to purchase magic internet assets which will track the value of an underlying asset and therefore increase or decrease in value over time. You may purchase magic internet assets that significantly decrease in value over time. This is especially true in the crypto space where we see many volatile markets.

Additionally, some magic internet assets may have leverage. This will be clearly stated alongside each asset. This essentially magnifies your gains or losses, and hence magnifies your risk. Make sure you understand what leverage is and how it can get you rekt.

Liquidation risk#

None. Unlike older onchain asset platforms, Float Capital has no risk of liquidation for users.

Ape risk#

The risk of enjoying the Float platform so much that you over commit capital to the protocol. We know the UX is slick and effortless. We know that the Discord is comfy, and the community awesome. Please AIR.


Special shout out to all the eyes on the code (tech team, C4 wardens, friends and community builders) and legends involved with ensuring Float Capital is as safe as possible.

This article was inspired by this piece by Anthony Sassano, and this piece by Rafaella Barado.

Written by JonJon Clark, with additional contributions from Campbell Easton, Jordyn Laurier, Michael Young, Paul Freund and Denham Preen.

About Float Capital#

Float Capital builds peer-to-peer, yield enhanced magic internet asset markets, allowing users to mint assets in a matter of clicks, without the need for over collateralisation or the risk of liquidation.

If you’re reading this before September 17, 2021, you can test out the platform mechanics with test DAI on the Mumbai Testnet. If you’re reading this after that date, you can mint magic internet assets in our Alpha protocol here.

Introducing Float Capital: The Future of On-Chain Assets Powered by Chainlink

· 6 min read

First up, some massive news. The Float Capital Alpha goes LIVE on Polygon, this Friday, September 17, 2021.


Given we are pioneering the future of on-chain assets, our Alpha launch relies on safe and up-to-date access to asset prices. For this reason, we are proud to announce that the launch of the Float Capital protocol is powered by Chainlink Price Feeds on the Polygon mainnet to provide access to high-quality financial market data, helping ensure on-chain assets are properly pegged to the assets they represent.

Float allows users to effortlessly turn their crypto dollars into an asset of their choice. Whether it’s crypto assets, commodities, forex, specialized assets (the flippening), and more, we have it covered in an easy, safe, and efficient manner. Under the hood, we have some incredible tech! Pop into our Discord if you’d like to learn more.


The Float UI, live from our test site.

In order for our on-chain assets to accurately track the asset prices they represent, we needed a secure and reliable decentralized oracle solution for our protocol. After building in the blockchain space for more than three years and exploring different solutions, we have chosen to integrate Chainlink as it is the most optimal oracle solution for Float.

Chainlink Price Feeds are powered by a decentralized network of secure oracle nodes that aggregate data from multiple premium data providers. This helps ensure Float has tamper-proof and efficient access to a diverse range of highly accurate financial market data on a range of different crypto assets, indices, and more. Some of the key reasons we choose Chainlink Price Feeds include:

  • High-Quality Data — Chainlink Price Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned from outliers and suspicious volumes. Chainlink’s data aggregation model helps generate more precise global market prices that are resistant to API downtime, flash crash outliers, and data manipulation attacks like flash loans.
  • Secure Node Operators — Chainlink Price Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises with a strong track record for reliability, even during high gas prices and extreme network congestion.
  • Decentralized Network — Chainlink Price Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or the oracle network.
  • Economy of Scale — Chainlink Price Feeds benefit from an economy of scale effect, where increasing adoption allows multiple projects to collectively use and fund shared oracle networks to fetch commonly required datasets (e.g. ETH/USD). This allows DeFi projects to get premium data quality and robust oracle security for a fraction of the total cost.

Made possible through this Chainlink integration, the first market launching in the Float Alpha this Friday (17th of September), is ….

The Flipp3ning!#

The Flippening is a term used to describe the point at which Ether ‘flips’ Bitcoin through a larger market capitalization. The Flipp3ning is a 3x leveraged position tracking the relative market cap of Ether compared against the market cap of Bitcoin. This allows users to take a position for or against the flippening, allowing users to gain financial exposure to this event.

The Chainlink Labs team moves fast, allowing us to build with confidence and scale the protocol and bring you many more markets in Alpha season through the launch of new data feeds. We want to give them a big shout-out for accommodating all our crazy price feed requests with lightning-fast response time and without compromising on security or reliability.

Did someone say GEMS?#


Users can collect 250 GEMS every day for simply interacting with the Float Capital protocol. We can’t share any more details right now, but it may or may not involve Chainlink VRF in the future. 👀

Under the hood#

Let’s take a quick technical deep dive.

Although an oversimplification, it may be useful to think of Float as a non-expiry futures contract that settles and rolls over into a new contract at every Chainlink oracle update. Based on demand and supply of liquidity in long and short positions on the on-chain asset, new terms will be algorithmically calculated for a given epoch.

Whenever a new Chainlink oracle update occurs, we have an update system state hook that will automatically fetch the latest price from the reference contract, adjust system liquidity, and perform incentive actions based on the updated price, before finally incrementing the epoch (or what we sometimes call the index).

This helps ensure that the peg of the on-chain assets matches the asset it represents by incentivizing people to enter the less popular position. Securing this process are Chainlink Price Feeds, which update rapidly on the Polygon network to provide access to the freshest financial market data.

“Integrating the industry-standard Chainlink Price Feeds into the Float Capital protocol has provided us easy access to the high-quality financial market data required to mint on-chain assets in a hyper-reliable and secure manner,” stated Jon Jon Clark, Co-Founder of Float Capital. “We look forward to expanding our Chainlink integration to include additional secure oracle services, helping grow and bring advanced utility to our products.”


About Chainlink#

Chainlink is the industry standard for building, accessing, and selling oracle services needed to power hybrid smart contracts on any blockchain. Chainlink oracle networks provide smart contracts with a way to reliably connect to any external API and leverage secure off-chain computations for enabling feature-rich applications. Chainlink currently secures tens of billions of dollars across DeFi, insurance, gaming, and other major industries, and offers global enterprises and leading data providers a universal gateway to all blockchains.

Learn more about Chainlink by visiting or read the documentation at To discuss an integration, reach out to an expert.

About Float Capital#

Float Capital builds peer-to-peer, yield enhanced on-chain asset markets that allows users to mint assets in a matter of clicks, without the need for over collateralisation or the risk of liquidation.

You can test out the protocol, UI, and our market mechanisms on the Mumbai Testnet. The alpha launch will go live for real capital on Friday, September 17th. If you want to learn more about how the protocol is designed to maximise your exposure, read our documentation. If you want to join the community, meet the team and vote on upcoming markets, join our Discord or follow us on Twitter. The Float Alpha release has various risks such as smart contract, composability, stable coin, network, and financial risk. Please deposit responsibly.