WFCT Uniswap Pool Handbook
Uniswap is an automated liquidity protocol implemented in a system of non-upgradeable smart contracts on the Ethereum blockchain. It obviates the need for trusted intermediaries, prioritizing decentralization, censorship resistance, and security.
Wrapped FCT (WFCT) is community led, 100% backed and verifiable FCT token, issued on the Ethereum blockchain.
Wrapped FCT (WFCT) is backed 1:1 with a native FCT token on the Factom blockchain — the number of issued WFCT tokens is equal to the number of native FCT tokens locked in custody.
Users can freely move FCT tokens between Factom and Ethereum networks using partner infrastructure — qTrade exchange, that is also available for the US residents.
FCT <> WFCT Conversion
qTrade exchange has listed a WFCT/FCT pair that allows anyone to convert native FCT tokens to wrapped WFCT and vice versa.
https://qtrade.io/market/WFCT_FCT
Factom Exchange Committee acts as market-maker and provides liquidity to the WFCT/FCT pair in a narrow range (0.2% spread that is used to cover token transfer fees), so you can convert your FCT to WFCT and vice versa any time.
WFCT/USDC Uniswap Pool
Uniswap pool for WFCT/USDC pair allows to buy and sell WFCT in pair with USDC.
https://app.uniswap.org/#/swap?outputCurrency=0x415Acc3C6636211E67E248DC28400B452aCefa68
Uniswap has no limitations to use, anyone who has ETH address is able to buy and sell WFCT via pool. Swap fees, set by Uniswap protocol, are fixed at 0.3%.
All fees are accumulated into the pool and shared across Liquidity Providers of the pool.
How to become a liquidity provider and earn yield from WFCT?
If you own WFCT and USDC, you can put them into the pool in a 50/50 ratio, provide liquidity for traders and earn swap fees.
0.3% of total trading volume is shared across all WFCT/USDC liquidity providers.
If there is $500,000 worth of WFCT+USDC in the pool and daily trading volume is $200,000, then $600 of trading fees will be earned and shared across all WFCT/USDC liquidity providers, which is equal to 0.3% daily interest and 54.9% APY (fees are accumulated and auto-compounded into Uniswap v2 pools).
Liquidity providers should be understanding all associated risks of using DeFi, such as impermanent loss, smart contracts flaws, etc. A good article covering this topics is available here.
Factom Finance and Yield Farming
Decentralized Finance (DeFi) has quickly grown to become a prominent use case for blockchain technology.
By leveraging low, fixed cost transactions whilst anchoring back onto ETH and BTC networks, Factom is ideally positioned to become a more efficient, secure platform for DeFi and NFTs than is otherwise available today.
Factom Finance, which is intended to be launched in Q4 2021, will initially reward WFCT liquidity providers through farming it’s own token, the value of which is backed by a share of platform revenues.
Factom Finance has the overarching roadmap to incentivize an entire DeFi and NFT ecosystem built on top of the Factom network.
