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FTDex
FTDex is the platform's liquidity provider token.
FTDex consists of an index of assets used for swaps and leverage trading. FTDex can be minted using any index asset and burnt to redeem any index asset.
The price for minting and redemption is calculated based on:
The total worth of assets in the index including profits and losses of open positions / FTDex supply
As FTDex holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa.
Key in the amount of FTDex you'd like to redeem at TBA. Note that there is a minimum holding time of 15 minutes after minting before you can redeem FTDex tokens.
The fees to mint or redeem FTDex vary based on whether the action is aligned with the protocol’s needs at that time or not. For example, if the index has a large percentage of ETH and a small percentage of USDC, actions which further increase the amount of ETH the index has will have a high fee while actions which reduce the amount of ETH the index has will have a low fee.
Token weights are adjusted to help hedge FTDex holders based on the open positions of traders. For example, if a lot of traders are long ETH, then ETH would have a higher token weight, if a lot of traders are short, then a higher token weight will be given to stablecoins.
If token prices are increasing, then the price of FTDex will increase as well, even if a lot of traders have a long position on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value since if prices increase the profits from that portion will be used to pay traders, and if prices decrease, the losses of traders will keep the USD value of the reserve portion the same.
Last modified 6mo ago