The much-anticipated Formation Fi has announced plans for an upcoming soft launch. The launch will bring to life the world’s first-ever, dual-vault, cross-chain stable swap pool (BUSD<>USDT).
Formation Fi – in an official blog post – thanked its entire community members for their continuous support even during the bear market. Furthermore disclosing that the proposed soft launch will not have been made possible without their input.
The Only Question is…
When Should We Press The Button?! 🚀🌙
— Formation.Fi (@FormationFi) August 3, 2021
DeFi 2.0 is Here – Formation Fi
The decentralized finance (DeFi) protocol Formation Fi team has been hard at work to bring DeFi Summer 2.0 to its users.
The proposed soft launch will provide interested users with access to the internal workings of the platform. Therefore, preparing them in advance for its ALPHA V1. The proposed soft launch will contain some important features of the proposed ALPHA V1 launch. Also, community members and industry participants will have the opportunity to practically make use of some of the Formation Fi tools.
Formation Fi Cross-Chain Fee Balancing USDT/BUSD Swap Pool
The USDT/BUSD will be swapped on a 1:1 basis. The swapping will be vice versa, simple, and easy to carry out. It will also involve an estimated 10x reduction of transaction costs as well as balancing fees and rewards.
Interestingly, both assets (USDT and BUSD) will be pegged 1:1 to the USD, irrespective of prevailing market conditions. Unlike most swap pools, Formation Fi will make use of vaults for both assets, therefore providing LPs with fixed APY’s and trading fees. These vaults on both sides of the chains will help support the entire BUSD/USDT cross-chain swap pool.
Formation Fi ‘Balancing Fee’ Algorithm
Apart from the cross-chain fee balancing swap pool, the platform will also be equipped with a unique fee algorithm. The fee algorithm will require users to only pay gas fees when both chain vault balances are the same. Transferring assets will attract between 4x to 10x lower price as compared to “traditional” swap cost.
However, in the event of having an unequal vault ratio, the dynamic fees will change accordingly.
Formation Fi LP Earnings
Liquidity providers will earn approximately 50% of the total fees acquired by the pool. The remaining 50% will be allocated to the protocol. Interestingly, LPs will also earn Formation Fi native token FORM.
To enter the pool as LPs interested persons will need to choose either one of the assets (USDT or BUSD) and its respective blockchain (either Ethereum or BSC).
At the time of publication, FORM was trading at $0.217483 with a 24-hour trading volume of $421,802. The token price is also down by 1.4% over the last 24 hours.
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