There are 2 types of tokens to fuel the overall Ferro ecosystem, each with different utilities, namely $FER and $xFER.
$FER token is the main reward/incentive token in the protocol. Users can receive $FER by staking their LP token (obtained after depositing/LP-ing into the pool) into a liquidity farm. $FER token can be further converted into a $xFER token based on the exchange rate at the time.
$FER has a fixed total supply of 5,000,000,000 (5 Billion) and will be distributed as follows:
$xFER token is the yield-bearing token of the Ferro Protocol. Users can opt to convert $FER to $xFER at the prevailing exchange rate at any time. Ferro Protocol directs a certain portion of the protocol revenues (e.g. swap fees) into the $FER:$xFER conversion contract, resulting in the continuous increase of $xFER over $FER over time.
When users provide liquidity to Ferro Protocol, they will receive the corresponding Liquidity Provider (LP) Token as proof of their participation. These LP tokens can then be staked to receive the following emission reward:
- 60% of the reward in the form of $FER token, available to be harvested immediately
- 40% of the reward will be directly converted into $xFER at the prevailing exchange rate and will be automatically directed into the 30-day locking vault. Users can choose to upgrade their vault setting as well for higher rewards
There is no restriction on the $FER token that’s harvested (i.e. the 60% portion). Users can choose to convert it into $xFER, sell it directly, or use it to provide liquidity back into the protocol.
Holders of $xFER token can opt to lock their $xFER token with different maturity options. By locking their $xFER, users can mine extra $FER tokens. In later phases, locked $xFER will give users access to boosts on their LP yields.