🔵Crypto Factor Insurance
$CFR Token Insurance - A true FIRST!
Last updated
$CFR Token Insurance - A true FIRST!
Last updated
Asset Backing - sometimes called Baseline Price Insurance is a service designed to provide an asset-backed baseline price for a token independent of its market price. The asset-backing ensures that the baseline price can only increase and tokens can be exchanged for part of the asset-backing at any time.
If the market price gets lower than the baseline price, an arbitrage opportunity occurs where users can buy tokens from the DEX (as an example) and exchange them for assets from asset-backing. This arbitrage trade can be executed until the market price with fees is greater or equal to the baseline price.
Asset Backing DAPP
On the Crypto Factor DAPP you will find the Asset Backing Tab. On this application you can find in one place a number of key operational metrics and the SWAP function.
IT IS EXTREMELY IMPORTANT TO NOTE THAT ASSET BACKING IS A FEATURE THAT ALLOWS FOR A PROFITABLE SWAP DURING ADVERSE CONDITIONS. THE SWAP FROM CFR TO DFI AT THE BASELINE PRICE SHOULD BE REVIEWED CAREFULLY BEFORE YOU SWAP AS THERE MAYBE A BETTER PRICE THAT EXISTS ON THE OPEN MARKET.
Asset Backing Balance: The total amount of $DFI that is currently backing $CFR. This balance is incremented automatically on every buy/sell of $CFR as per the tokenomics set out in our whitepaper. This balance only goes up.
Asset Backing Base Price: The current price that can be claimed via swap. This is the Asset Backing Balance / CFR Circulating Supply minus any pending CFR->DFI automated swap processing. (CFR->DFI conversion occurs via automated routine at regular intervals).
CFR Circulating Supply: The amount of $CFR which is circulating. This is depleted when $CFR is burnt as part of the swap process. This balance only goes down.
CFR Burnt Amount: The amount of $CFR that has been burnt as part of the Asset Backing swapping. This balance only goes up and when combined with the CFR Circulating Supply = the Total Supply of 100m.
Your Wallet Balance and the amount of $CFR that is available for swap. The available $CFR = the Asset Backing Balance from the operational metrics form.
A $CFR token input (with %) to enable the amount of $CFR to be specified for swap, together with the Swap Button.
Metrics - CFR Market Price: The current live price according to the DMC DEX.
Metrics - CFR Baseline Price: The swap price available (as above 'Asset Backing Base Price'
Percentage: The CFR Baseline Price / CFR Market Price which provides an indication of what percentage the $CFR token is backed.
Chart: The chart provided the above metrics in chart form with three timing ranges to scale the charts. The charting feature is used as a quick reference as to the health and progress of the backing.
Crypto Factor Phase 1 Asset-Backing uses $DFI for backing
Crypto Factor Phase 2 Asset-Backing can uses $DUSD for backing
Crypto Factor Phase 3 Asset-Backing will introduce a multi-token blended backing
Crypto Factor Clients will be required to hold at least 20% of their Asset-Backing in $CFR
Open DApps Cloud designed and built this product and in collaboration with Crypto Factor will be developing this feature in a robust service to meet our client insurance needs.
For a more detailed explainer ODA have prepared an article including the complex maths behind this here on Mirror:
