What You Need To Know Before You Buy Ferro（FER)

By Lexie Tanner 1 year ago

Ferro Protocol(FER) is a decentralized exchange that is designed to provide users with an easy and affordable way to exchange digital assets. By leveraging the StableSwap AMM model, Ferro Protocol reduces slippage and ensures that users can exchange their assets without incurring high fees. In addition, Ferro Protocol incentivizes users to create more efficient pools by allowing them to earn tokens through liquidity provision. This not only benefits users but also creates a more robust and diverse ecosystem on the Cronos blockchain. Overall, Ferro Protocol is a powerful tool for traders and investors who are looking for a reliable and efficient way to trade and earn rewards on the Cronos network.

FER token price

Ferro Protocol Key Functionalities

SWAP

Ferro protocol enables token swaps, which means users can exchange one token for another as long as both tokens are available in any of the liquidity pools within the protocol. This feature provides users with access to a wide range of token trading opportunities and helps to improve liquidity across the network. Token swaps are an essential component of decentralized finance (DeFi) and are often used for various purposes such as rebalancing portfolios, hedging risks, and arbitrage trading. Ferro protocol’s efficient and secure token swap mechanism provides a seamless user experience, low fees, and fast transaction speeds.

  1. Cross pool (example: exchanging ETH to USDC, involving “ETH-WETH” pool and “USDC, DAI, USDT” pool)

  2. Within the same pool (example: exchanging DAI to USDC in a “USDC, DAI, USDT” pool) 

Users can also customize their token exchange by specifying the allowable Slippage (by%).

The total transaction fee per swap is 0.04%, and it is divided as follows:

  • LP Provider Rewards 0.02%

  • xFER Buyback 0.016%

  • Treasury/Admin 0.004%

Liquidity Pools

There are two types of pools in the most mature Stableswap AMM: Base Pool and Meta Pool, each with unique characteristics and utilities.

Liquidity pools in Ferro, similar to the Swap feature, will include a mechanism that encourages or discourages users from providing liquidity for a particular token in order to maintain a balanced proportion of tokens in the pool. This mechanism is commonly known as liquidity provision incentives/disincentives. The incentives/disincentives are designed to attract liquidity providers to tokens that are underrepresented in the pool and discourage providers from tokens that are overrepresented. By doing so, the mechanism ensures that the pool remains stable and that there is always enough liquidity available for trading. The exact nature of the incentives/disincentives will depend on the particular protocol used in Ferro and can vary from protocol to protocol.

What is the Price of FER Tokens?

FER token has a fixed total supply of 5,000,000,000. And the highest price paid for Ferro (FER) is $0.126073, which was recorded on Jul 18, 2022. At the time of writing,FER market cap is 21,508,042. The current FER token price is $0.02951 per coin. The 24-hour trading volume for the coin is $389,426.

FER Token Tokenomics

To fuel the overall Ferro ecosystem, there are two types of tokens, $FER and $xFER, each with different utilities.

The $FER token is the protocol’s primary reward/incentive token. Users can get $FER by staking their LP token (which they get after depositing/LP-ing into the pool) in a liquidity farm. Based on the current exchange rate, a $FER token can be converted into a $xFER token.

The Ferro Protocol’s yield-bearing token is the $xFER token. Users can convert $FER to $xFER at any time using the current exchange rate. The Ferro Protocol directs a portion of protocol revenues (for example, swap fees) into the $FER:$xFER conversion contract, resulting in a continuous increase of $xFER over $FER over time.

Users will receive the corresponding Liquidity Provider (LP) Token as proof of their participation when they provide liquidity to the Ferro Protocol. These LP tokens can then be staked to receive the emission reward listed below:

  • 60% of the reward in the form of $FER token, available to be harvested immediately

  • 40% of the reward will be directly converted into $xFER at the prevailing exchange rate and will be automatically directed into the 30-day locking vault. Users can choose to upgrade their vault setting as well for higher rewards

What Coins are Like Ferro(FER)?

Assets that have a similar market cap to Ferro include SymVerse, Kingdom Raids, MuscleX, and many others. All of these coins are decentralized and have their own unique features and benefits.