First of all, we would like to extend our gratitude to the valued members of the FAB community on Discord and Twitter for their continued support. None of this is possible without their hard work. Merry Christmas & thank you for your unwavering support.
After many months of hard work, the FABRIC fSynth dApp will be going live on devnet on 29th December.
What is the fSynth dApp?
Built on the ultra-fast Solana ecosystem, FABRICs fSynth dApp will allow users to trade a variety of synthetic assets including fURA (uranium), fXAU (gold), fBTC, fJPY and a number of fiat currencies, cryptocurrencies, commodities, indexes and inverse assets. FABRICs architecture allows for low fees, practically unlimited liquidity and unrivalled speed.
All synthetic assets are collateralized by FABRIC tokens (FAB) which must be locked into the FABRIC debt pool to allow users to mint synthetic assets. As a result, users interact directly with the debt pool during trades and act as a shared counterparty.
Staking FAB 📈
When a user provides their FAB as collateral they are able to mint fUSD (Fabric’s native stablecoin). In doing so they create a debt and benefit from a number of different rewards including:
1. Synth Trading Fees - when a synth trader buys or sells a Synthetic asset on the fSynth dApp, a small fee is incurred. These fees are distributed to FAB stakers (and PUNK holders) as a reward.
2. FAB emissions - FAB stakers will also be rewarded periodically with FAB token emissions.
3. fUSD LP rewards - fUSD can be staked in a Stablecoin pool for additional yield.
Stakers must maintain a healthy collateral ratio to ensure that they’re eligible for synth trading fees and FAB emissions, and not subject to partial liquidations.
All fSynth trading happens through the use of fUSD. Traders can obtain fUSD through staking FAB and minting fUSD. However, if derivatives trading is your sole motivation and you aren’t interested in yield farming, you can buy fUSD from one of the stablecoin pools that we’ll be setting up with our partners during our mainnet launch in Q1 2022.
The Collateral ratio, or c-ratio, is simply the ratio of collateral to debt. The c-ratio can be impacted either through changes in the value of the collateral staked (FAB token) or changes in the value of global debt (i.e. debt is removed or added to the system).
A more in-depth breakdown of the c-ratio, trading and staking mechanisms will be available in our documentation space on 28th December.
We’re incredibly excited to go live and can’t wait to share what we’ve built with the FAB community. We’ll share more info on how to get started on devnet shortly 👋
Join The FAB Family
We can’t wait for you to join the community and become a part of the FAB Family.