Analysis of Factor.fi and how to participate on the Launchpad
As Arbitrum DeFi Summer approaches, numerous protocols are launching, reminiscent of the previous DeFi craze, to raise tokens. With a relatively large amount of funds being amassed during this time, it's crucial to gather and examine various pieces of information to take part in the DeFi frenzy.
To start with, several launchpads have been created on the Arbitrum network through Camelot Dex. Three launchpads have been completed successfully, and the fourth one is presently underway.
Observing the past performance of launchpads, Camelot Dex's Grail attracted around 3.7 million USDC, while NEU managed to gather 394,000 USDC, and TROVE gathered 8,222 WETH. Except for NEU, all the launchpads attracted over 3 million USD.
Presently, the launchpad for $FCTR, the token of Factor, is in progress, and information on how to participate can be found through this link:
👉 https://bit.ly/factor_fctr (referral included)
What is Factor?
Before participating in any rush to , it's important to gather enough information about the fundamentals of Factor. Below is a summary of relevant information and to get a feeling about the project.
- Participation in the official launchpad: https://bit.ly/factor_fctr (referral included)
- Website: https://factor.fi/
- Medium: https://medium.com/@FactorDAO (515 followers)
- Twitter: https://twitter.com/FactorDAO (20.6K followers)
- Discord: https://discord.com/invite/aDukrZRhDg (10.3K followers)
- Official Documents: https://docs.factor.fi/
In brief, Factor is a decentralized middle-ware to make it easy for projects, traders and investors to build a infrastructure or make a liquidity layer.
Let's take a look at three examples.
Factor is developing vault standards that make it easier to create, settle, and trade decentralized derivatives on any asset. This allows for the creation of risk management tools, such as hedged positions and credit default swaps, to help users mitigate risks associated with stablecoin de-pegs. By providing trustless and permissionless access to derivatives origination, Factor gives users greater control over their risk management strategies.
Factor allows people to lend and borrow money using different pools that they can customize based on their level of risk. Each pool is separate from the others, so if something goes wrong, it only affects that one pool. Users need to provide collateral in order to borrow money, which should be a liquid asset that can be sold quickly. This helps to make sure that the platform is safe and that people get their money back.
Factor allows users to create tokenized baskets of different assets, such as stocks or cryptocurrencies, and store them in a self-custodial platform. This means that the user has complete control of their assets and they are held in tokens on the platform. These baskets can generate yields and be used to gain exposure to different types of investments. The baskets are fully collateralized and can interact with other protocols in the Factor ecosystem. The platform provides performance and risk metrics to help users make informed investment decisions.
In short, Factor is a decentralized platform that allows traders to easily create tokens and derivatives without requiring advanced knowledge of DeFi. It offers a No Code approach for creating these assets, making it accessible for both B2B and B2C users. The platform is based on smart contracts, which enable the creation of various indexes, tokens, and real-world assets in a decentralized environment.
The Factor team is anonymous, which is common in DeFi projects. The team's Twitter accounts have followers ranging from 1,000 to 20,000. Since it's a decentralized protocol, the team's anonymity is not a major concern, and the focus should be on the protocol's security. However, it may still be challenging for investors to evaluate the project solely based on the anonymous team's profile.
Real Interest Model
Most of Arbitrum's DeFi products, including Factor, can generate Real Interest. To use Factor, users need to pay a few fees. When you deposit or withdraw from a Vault, you'll pay a 0.3% fee. If you swap tokens, you'll pay a 0.1% fee.
In addition, Factor charges two more types of fees: performance and management fees. When a user creates a Vault, they can choose to set up these fees, which can be up to 20% of the combined profit margin. The protocol team takes 10% of each protocol unit for these fees.
When users pay these fees, 50% of them are given to veFCTR token holders based on the quantity and amount of the token they hold. The other 50% are kept in a DAO Vault and invested through governance.
If you want to stake FCTR, you'll need to lock it up for a period of 1-4 years. The amount of veFCTR tokens you receive depends on the length of the lockup period.
- Maximum supply of FCTR is 100,000,000 tokens.
- Initial release volume is theoretically 30.8% but the 20.8% of the Ecosystem Incentives is difficult to determine when it going to be affecting the market liquidity.
- 15% of team supplies are released steadily over 24 months.
- Fifty percent of Treasury Reserve is released over 3.5 years.
- Only about 30 million FCTR tokens are planned to be released in the beginning, which is less than 30% of the total token supply.
- It is estimated that only 10% of the tokens are distributed during the public sale and that additionally some of the tokens from Ecosystem Incentive are going to be released at the beginning.
Launchpad Detailed Information
- Date and time: February 21st to 24th, 2022
- Method: Fair launch (Final price is determined according to the amount raised by limited number of tokens sold)
To participate, you need to use the Arbitrum chain and connect your wallet from Camelot Dex through the participation link: https://bit.ly/factor_fctr (with referral link).
You can participate anytime until February 24th. In order to participate, you need to have USDC and ETH on Arbitrum. ETH is needed to pay for gas on the Arbitrum chain, and USDC is needed to participate in the Launchpad. Once you deposit your USDC, it cannot be canceled. The method of the Launchpad is a Fair launch, meaning that the final price of the tokens will be determined according to the amount raised by the limited number of tokens sold.
Using the Arbitrum Chain
If you've used Arbitrum before, you might be familiar with the process, but if it's your first time, keep the following things in mind:
- You'll need some Ethereum as gas fees on the Arbitrum chain.
- It may be tricky to send USDC directly to Arbitrum, so it's easier to use a centralized exchange that sends ETH directly to Arbitrum (such as Binance).
- You can also use decentralized Bridges like hop.exchange to bridge from Ethereum Mainnet to Arbitrum, but be informed that the bridging cost can change based on the amount of ETH you are bridging.
- If you've used Ethereum, Polygon, or BSC addresses in Metamask before, you can use them in Arbitrum too.
- To add Arbitrum to Metamask, open the plugin, click the current network button, and select "Add Network." Usually, you can add Arbitrum One directly, as it should be visible as an option.
Add Arbitrum One in Metamask
If you can't find the option to add Arbitrum on Metamask automatically, please use the following parameters to add it manually.
- Network Name : Arbitrum One
- RPC : https://arbitrum-mainnet.infura.io
- Chain ID : 42161
- Currency Symbol : ETH
- Block Explorer : https://explorer.arbitrum.io
Send assets to Arbitrum
Sending funds from existing chains can also be done using bridges. However, to send funds quickly, you can collect various funds and send them as an example to Binance and exchange them with Ethereum. Afterward, you can withdraw Ethereum directly to Arbitrum and swap there to USDC. Make sure that your centralized exchange is supporting Arbitrum for Ethereum withdrawal.
To swap Ethereum to USDC, you can use directly the Camelot Swap or Uniswap. If you opt for Uniswap, remember to switch the chain to Arbitrum. It is recommended to compare the swaps as it could result in a few dollar more or less depending on the swap rate of each DEX.
Alternatively, you can use the bridge to transfer USDC directly from another chain or use a centralized exchange that sends USDC directly to Arbitrum. However, ensure to test the actual assets first to verify if they are moving properly.
Performance of previous tokens
First Launchpad - Grail Token:
- Initial Launchpad Price : $254/token
- Current trading price: ~$2,571/token (10-fold increase)
Second Launchpad - NEU Token:
- Initial Launchpad Price: $0.65 USD/ token
- Current trading price: ~2.15 USD
Third Launchpad - Trove Token:
- Initial Launchpad Price : $0.0681 USD / token
- Current trading price: ~$0.051 USD (18% decrease)
- Potential for price increase if momentum is created and rising pattern is repeated.
At the date of writing this column $Trove just started injecting liquidity and it should be observed how the price is moving for at least 1 week.
The Future of Factor
The Factor protocol has a well-designed mechanism for providing real interest, similar to other Arbitrum-based DeFi projects. It could be difficult in the beginning to gather enough users to convince them to create vaults, but Factor is partnering with other projects such as Sperax, Lyra, and CVI Finance to create an initial growth.
Factor ahs also completed an Audit at Solidity Finance. However, it's important to note that having these partnerships and audits does not guarantee a sufficient platform usability in the future. So it will be crucial for investors and projects to utilize the platform frequently and diversely, in order to generate real interest and create value for the $FCTR token.
- If you're interested in participating in the Launchpad for Factor, you can use the following referral link: https://bit.ly/factor_fctr.
Disclaimer : Before making any investments, it is important to conduct your own research (DYOR) to make informed decisions. The information provided in this column is for educational purposes only and should not be construed as investment advice.
- Original Text in Korean : Source