Ferro Protocol
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Ferro Pools

Introduction to Ferro Pools
Check out our Whitepaper for detailed explanations of the underlying mechanics and tokenomics.

1. Base Pool

Base Pool typically consists of 2 or more highly correlated tokens with the following variations:
  1. 1.
    Standalone Stablecoin pool (usually treated as the “main pool”)
  2. 2.
    Lending pool
  3. 3.
    Pegged / Yield Bearing token

2. Meta Pool

Meta Pool provides a combination of Base Pool plus 1 or more tokens.
This mechanism brings several advantages to platform users:
  • Allows Ferro to list less liquid assets
  • Shielding liquidity providers of Ferro Base pool from systemic risks
  • Prevents the dilution of existing pools
  • More volume for the protocol

Example:

Pairing Ferro base pool [USDC, USDT, DAI] with TUSD.
The Meta pool will consist TUSD (on a standalone basis) and Ferro Base 3Pool LP tokens
Users has flexibility to choose how the deposit token will be allocated:
  1. 1.
    Split equally among all stablecoins (4 tokens in this scenario)
  2. 2.
    Convert it into Ferro Base 3Pool LP token
  3. 3.
    Select specific stablecoin to deposit
Users will have also several options to deposit / withdraw the token:
  1. 1.
    TUSD
  2. 2.
    Any of the Ferro Base 3Pool constituent (DAI, USDC, USDT)
  3. 3.
    Ferro Base 3Pool LP token

Deposit / Withdrawal Incentives

Similar to the Swap feature, the typical liquidity pools in Ferro will also carry a mechanism to incentivise/disincentivize users to LP a particular token, in order to balance the proportion of tokens in the pool (a.k.a. Deposit Bonus / Withdrawal Penalty).
  • Users depositing underweighted token (vs other token in the pool) will receive Deposit Bonus
  • Users withdrawing underweighted token (vs other token in the pool) will be charged Withdrawal Penalty
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 1 month locking vault. Users can choose which vault duration to allocate this portion of the rewards into
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.