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NOTE: These docs are under active development ๐Ÿ‘ทโ€โ™€๏ธ๐Ÿ‘ท

Still have questions? Feel free to reach out to us on Discord ๐Ÿ™

The basics#

What is a synthetic asset?#

A synthetic asset simulates the performance of an underlying asset but with some key benefits. Synthetics can offer investors reduced trading costs, tailored cash flow patterns, altered risk profiles, leverage and so on. Float Capital, however, is designed to be simple and safe.

As an example, normally to get exposure to an asset, say Gold, you would need to physically buy Gold, then sell it at a later stage to realise a return. Buying a synthetic asset allows you to get identical exposure to the risk and return benefits of the asset, without having to own the underlying asset.

What synthetic assets does Float Capital currently support?#

Checkout our alpha launch markets for details on supported synthetic assets in our early release. The alpha Float protocol will launch with an initial synthetic asset tracking the Flipp3ning, a 3x leveraged version of the Flippening, which is based on the market cap of Ethereum vs. the market cap of Bitcoin.

Testnet synthetic assets#

Our testnet deployment currently supports 3 synthetic assets.

One of our test synthetic asset is an 'index' known as the ethereum killers (ETHKillers). This Market is an average of the prices of the tokens of the three protocols seen as alternatives to ethereum, namely TRON, XRP and EOS. The EthKillers market allows users to gain long or short exposure to an equally weighted basket containing TRON, XRP and EOS.

Another synthetic market we have on the testnet is an asset tracking bitcoin vs ethereum dominance.

The third testnet market listed is synthetic Doge coin.

Join our Discord and give us your suggestions on which markets to release next.

What are 'long' and 'short' tokens?#

For every synthetic market we offer (eg. The Flipp3ning), users can create long or short tokens for this market.

Holding long tokens allows you to benefit from the price appreciation ๐Ÿ“ˆ of the underlying market. Holding short tokens allows you to benefit from the price depreciation ๐Ÿ“‰ of the underlying market.

Some common protocol questions#

Why call it Float Capital?#

Exposure to synthetic assets 'floats' in a band between 0% to 100%. The protocol uses various strong incentives to ensure that synthetic asset exposure is most often near 100%.

What is bad liquidity and good liquidity#

The basis of Float Capital is creating a 'peer-to-peer' exposure market where long positions on one synthetic asset, are offset by short positions on that same synthetic asset. Good liquidity refers to liquidity added or removed from the protocol that makes the balance of long and short positions more balanced, while bad liquidity indicates the opposite.

Are there any trading fees?#

Float Capital currently doesn't take any trading fees from traders. All fees levied are accrued either to Float token holders or to users already providing liquidity in that synthetic market. Fees only levied when users unstake their position at a fee of 50 basis points.

What are the benefits of adding good liquidity?#

Good liquidity earns a higher percentage of fees from the protocol. Good liquidity also earns a supercharged yield, through earning yield on all the underlying assets. Finally, staking good liquidity also allows users to earn Float tokens at a higher rate. The whitepaper provides comprehensive details on these incentives.

Terminology ๐Ÿ“—#

What is an oracle?#

Simply put, it's a feed that communicates information from the real world to the blockchain. For the purposes of trading synthetic assets, the oracle would provide the price feed for the underlying asset. Float Capital uses an oracle aggregator so that it is never relying on one single provider, and this increases the durability of the system.

What is a governance token?#

A governance token can be thought of a bit like equity in a company. Governance tokens give holders voting rights over proposed revisions to the protocol, allowing them to have their voices heard on how a protocol operates. Some governance tokens (Float tokens included) give holders added benefits. Similar to stock buybacks, fees earned by the LongShort protocol that aren't paid out to holders in return for helping to balance the liquidity pools, will be used to buy back Float Tokens in the open market, thus decreasing the supply in circulation, and increasing their value.

Other things you may want to know ๐Ÿค”#

What Blockchain are you on?#

We are currently launched on the Mumbai testnet. Float Capital will be launched on the Polygon (formerly Matic) network. Polygon is an EVM (Ethereum Virtual Machine) compatible blockchain.

Who is the team behind Float?#

We are group of passionate mathematicians and computer scientists (turned blockchain engineers) who have been working together for more than 3 years.

Chat to us on Discord for a deep dive into the protocol.

Still have questions? Feel free to reach out to us on Discord ๐Ÿ™