Understanding $FLT

What is the purpose of FlowFi's token?

FlowFi's native protocol token can be conceptualized as a uniform form of tokenized liquidity. It symbolizes the power to direct any of the deposited LP assets in the form of liquidity to various exchange venues. FlowFi's token serves multiple purposes:

  • Its primary function is to be utilized by Liquidity Directors who stake the token in order to receive votes. These votes are used to direct liquidity and secure Token Reactors.

  • It acts as the incentive/reward token of the system, distributed to users for actions like directing liquidity or providing assets.

  • It plays a role in protocol risk mitigation, acting as a safeguard against potential losses during liquidity deployment.

Earning FlowFi's Token

  • Liquidity Directors earn the token at a variable Annual Percentage Rate (APR), also dependent on the balance of the Token Reactor.

  • Liquidity Providers earn the token at a variable APR based on the balance of the Token Reactor. Additionally, LPs accrue tokens by depositing assets in the Genesis Pools.

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