fTokens

About fTokens, lending and borrowing

What is fToken?

All assets on Basic are integrated through a token contract which represents the IoTeX ERC20 compatible account balance provided to the protocol. By minting fTokens, users can perform the following operations:

1. Users can earn interests through fToken's conversion rate

2. Users can use fToken as collateral.

fToken is the major way to interact with Basic protocol. When users mint, redeem, borrow, repay, liquidate or forward fTokens, it will use fToken contracts to enable these operations.

What is the exchange rate between fTokens and tokens?

The exchange rate between the original assets and fToken is not constant. fToken is more like a fund quota. The assets exchanged back from fToken may increase because of the interests. Generally, users can get a return of up to 50 times of the deposits in fToken. But the interest may also impact the amount of fToken.

How to use fToken

Users will receive fXXX token after depositing their asset. Import these ftoken into your wallet to check the amount you hold.

What are the risks in the use of fToken

fToken is a certificate of deposit. After an ftoken is transferred to other platforms, the deposit in the account decreases and the loan utilisation rate increases. Users need to verify their loan limit before they can participate in other platforms. Recently, prices have fluctuated sharply, and it is recommended to keep loan utilisation rates low, to avoid liquidation.

Is the fToken deposited in Basic and not available to the user?

Those holding fTokens get Basic income. If a cooperative IoTeX project supports fToken mining, Basic will enter its contract and the cooperative project will make the secondary distribution rules.