We're very excited to release the first component of Fantom Finance, fMint!
You can now lock any amount of FTM and use it as a collateral to mint fUSD, the collateralized stablecoin on Fantom.
You can familiarize yourself with how the minting and repaying process work, as it's the first step to access Fantom Finance. And you’ll get rewards!
How to use fMint
- Access your wallet
- Click on the DeFi icon on the menu.
- Swap your FTM for wFTM using fSwap. wFTM is the wrapped version of FTM used in Fantom Finance. 1 FTM = 1 wFTM, you can swap as many as you wish.
- In fMint, click on Lock to lock your wFTM.
- You can lock any amount you like. This is a necessary step to mint fUSD, as locked wFTM is your collateral.
- In fMint, click on Mint fUSD.
- You can now mint fUSD, the stablecoin on Fantom pegged to the US Dollar. Note that minting is subject to 0.5% fee, deducted from the minted amount. There's no fee on repay.
What is C-Ratio?
C-Ratio is your collateralization ratio. On Fantom Finance, you have to keep a minimum of 300% C-Ratio.
That means that if the FTM price is $0.027, and you lock 10,000 wFTM (worth $270), you can mint up to 90 fUSD.
If you keep a C-Ratio of at least 500%, you’ll earn 6% APY in wFTM rewards.
If your C-Ratio goes below 300%, your wFTM collateral will be locked until C-Ratio goes back to 300%.
Initially, there won’t be any liquidation on fMint. You’ll never lose your locked wFTM.
To fix your C-Ratio, you can either wait for the C-Ratio to adjust itself (if FTM price increases), or add more collateral by locking additional wFTM.
You can increase your C-Ratio either by locking more wFTM and minting more fUSD (subject to 0.5% fee) or by repaying fUSD (no fee). If your C-Ratio is too close to 500% and you want to keep your rewards, simply repay some of the fUSD you minted.
Conversely, if you want to decrease your C-Ratio, you can unlock some wFTM or mint more fUSD without adding more wFTM.
As mentioned above, if you keep a C-Ratio of at least 500%, you’ll earn 6% APY (on the amount of minted fUSD, not locked wFTM) in wFTM rewards.
It’s important that you claim the minting rewards frequently. If you have any unclaimed rewards and your C-Ratio drops below 500%, those rewards will be burned.
You can claim rewards in two ways:
- Simply use Fantom Finance. Your rewards will be set aside automatically for every action you make (lock, unlock, mint, repay, swap). These are called stashed rewards. You’ll never lose these, even if the C-Ratio falls below 500%.
- Click on the Claim rewards button in fMint, and you’ll receive your wFTM rewards right away.
Note: the wallet will show pending rewards. That’s an estimate that can be slightly off; the exact amount is calculated and delivered once you click on Claim rewards.
- C-Ratio below 300%: your collateral will be locked until it goes above 300%. There won't be any liquidation.
- C-Ratio between 300% and 500%: your collateral is healthy, but you won't earn any rewards.
- C-Ratio above 500%: you'll earn 6% APY in wFTM rewards.
What is the Push Rewards button?
The Push Rewards button triggers a central function that unlocks all rewards for the period of distribution to minters. It's active once per hour, and only one user needs to click on it for all the minters to get the rewards.
It's a fun and decentralized way to keep everyone involved and engaged. Fantom has 5k+ active wallets, and the work of pressing the button will spread organically.
What can I do with fUSD right now?
You can be an early user of Fantom Finance, and the rewards might be higher than usual due to the lower participation.You can also use this time to get familiar with the process of swap FTM to wFTM, lock wFTM, and mint fUSD – and the way back; repay fUSD, unlock wFTM and swap it to FTM.
Finally, it’s worth mentioning that both wFTM and fUSD are ERC20 tokens on Opera. With a proper bridge, they can be ported over Ethereum, and developers can integrate them into other DeFi products. If you’re a developer and want to bring fUSD into your Ethereum dApp, talk to us!
Can I get liquidated using fMint?
No. Initially, there won’t be any hard liquidation. We want to make it easy for FTM holders to familiarize themselves with Fantom Finance and not worry about liquidations. In the worst-case scenario – if your C-Ratio falls below 300% – your tokens (only those those you used as collateral) will be locked until the C-Ratio becomes healthy again.
Can I use my staked FTM to mint fUSD?
Not initially. That feature might come in a future release, but we don’t want to add that layer of complexity at the moment, since it involves the security of the network as well.
Bonus: Dark mode!
Let's face it, everyone wanted a dark mode for the Fantom wallet, and it's finally here! We love it, and it's now the default mode for the wallet. If you prefer the light one, go to the settings, and you can change it there.
In the next few weeks, we'll roll out the suite's additional components: fSwap and fLend.