Champion FLDX - cpFLDX
Overcollateralized Champion-escrowed $FLDX & $veFLDX (FLAIR DEX - Avalanche chain)
$FLDX is the native token of Flair Dex, supporting Volatile and Stable Swaps With Very Low Slippage, Minimal Fees, and Ve(3,3) NFT on Avalanche blockchain. It rewards holders with a share of the platform's revenues and also acts as a governance token for its weekly pool incentives gauge. $FLDX has a decaying emissions model.
Users can stake and lock their $FLDX tokens on FLAIR for a fixed period between 1 week and 4 years, to receive a vote escrow NFT ("veNFT"), which is used to record the amount of $veFLDX held by the user.
$veFLDX holders receive five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $FLDX emissions distributed to platform liquidity providers;
- weekly $veFLDX distribution (rebase);
- boosted APR for the Liquidity they owned.
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
$veFLDX positions can be merged, and sold on the secondary market. $veFLDX time lock period can be extended.
The amount held by a given user decreases steadily to zero as the lock period moves towards its completion. Weekly rebase is to safeguard $veFLDX holders from dilution and to enable a dynamic distribution of $veFLDX among participants over time, the anti-dilution level has been capped at 15%;
$cpFLDX is an Overcollateralized Champion-escrowed version of $FLDX & $veFLDX staked for $cpFLDX to take advantage of the various benefits offered to FLAIR stakers.
You can mint $cpFLDX on the $cpFLDX vault page at a fix ratio of 1 $FLDX: 1 $cpFLDX and 1 $veFLDX: 1 $cpFLDX.
Remember to reset vote of your $veFLDX before mint $cpFLDX.
You will not able to redeem $cpFLDX to $veFLDX or $FLDX.
There will be incentivised liquidity for $cpFLDX-$FLDX LP.
When $cpFLDX value fall down below 90% of the $FLDX value (peg <0.9), the contract will not allow to mint more $cpFLDX from $veFLDX.
User can swap $FLDX to $cpFLDX via smart route in the $cpFLDX vault page. When $cpFLDX is above peg, $FLDX will be used to directly mint mint $cpFLDX at a 1:1 ratio. When $cpFLDX is below peg, $FLDX will be used to directly buy $cpFLDX in the $cpFLDX-FLDX liquidity pool.
Burning mechanism of $cpFLDX is based on the 1% transaction fee/tax including buy/sell/add & remove liquidity
Transaction fee/tax allocation:
- 50% of the fee/tax will go to Champion Treasury and become permanent voting power of Champion.
- 50% of the fee/tax will go to Avalanche chain's dead wallet, and the $FLDX back for those $cpFLDX will be permanently locked in the contract, permanently out of circulating supply.
From the begining of the contract, $cpFLDX token is fully backed 1:1 by $FLDX.
By the time, with the burning mechanism, when user buy/sell/add & remove liquidity of $cpFLDX and generate fee, half of the fee $cpFLDX will be sent to dead wallet and permanently out of circulating. The back ratio of $cpFLDX will be above 1:1 by $FLDX and $cpFLDX in the contract will become over-collateralized.
The more volume of $cpFLDX --> the more fee is generated--> the more backed ratio of $FLDX is--> the more overcollateralized $cpFLDX is.
When you mint $cpFLDX, the contract will immediately try to stake and lock the deposited $FLDX or merge the deposoted $veFLDX into the contract's $veFLDX with maximum locking time of 4 years.
Once the contract's $FLDX is staked and locked into $veFLDX, it receives five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $FLDX emissions distributed to platform liquidity providers;
- weekly $veFLDX distribution (rebase);
- fee from booster APR of the Liquidity providers;
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
As the $cpFLDX contract perpetually re-locks its $FLDX deposits, it always strives for the maximum amount of voting power and benefits.
Earned trading fees, bribes and rebase are regularly harvested, swapped for $cpFLDX & $FLDX and will be used to bribes $cpFLDX - FLDX Pool on FLAIR.
Once you're holding $cpFLDX, you can create $cpFLDX-FLDX LP and stake into FLAIR dex to earn more $FLDX.
Where our $cpFLDX contract earns trading fees, rebase and bribes by deploying its $veFLDX on the protocol, those protocol revenues are swapped back to $cpFLDX & $FLDX and use to bribes for $cpFLDX Pool. This maximises the yield for holders above what they could obtain alone from the protocol.
Champion strives to maintain some of the lowest yield-optimizing fees, and charges standard fees on its $cpFLDX optimizer.
Total of 6% perfomance fee, including:
- $Cham/$SHDB staker and/or bribes for CHAM/SHDB pool on FLAIR: 2.5%
- CF&DF Treasury: 3%
- Contract strategist: 0.5%
Lets detail 3 levels of $cpFLDX peg:
Peg Level | $cpFLDX Peg | Recommendation/Market reaction |
|---|---|---|
1 | Peg > 1.0 |
|
2 | 0.9 < Peg < 1.0 |
|
3 | Peg < 0.9 |
|
$cpFLDX will healthily maintain peg at Level 2 (0.9 < Peg < 1.0).
No. All $FLDX voting power will be used by Champion to vote in the weekly liquidity pool incentives gauge.
Votes will typically be directed either to the liquidity pools offering the most in trading fees and bribes, or to the liquidity pools which support our $cpFLDX token ($cpFLDX-FLDX LP).
The $cpFLDX contract will harvest all trading fees, rebase and bribes from the protocol and swap those for more $cpFLDX & $FLDX to bribes for the next epoch on FLAIR. Voting on FLAIR's incentivised liquidity pools takes place on its web app.
- If you want liquidity for your $veFLDX to farming more yield and/or to be able to sell to fiat in emergency case.
- If you do not have enough time to do the vote yourself
- If you do not want to provide Liquidity on FLAIR but still want to enjoy the boosted APR effect.
- If you want to enjoy "the eighth wonder of the world" - auto-compounding
Then wrappers and optimizers are there for you.
$cpFLAIR is one of the solutions.
There are some reasons:
- Protocols with vote-escrowed model normally see wrappers as the exist liquidity for their vote-escrowed tokens.
- All the wrappers and their investors are facing some main difficulties: Losing its peg for the peg model or Drained out its reserve for the reserve model
$cpFLDX is built to solve it and bring a win-win-win relationship to investors, vote-escrowed protocols and Champion
- For investors: with burning mechanism, boosted APR fee, and overcollateralized model, $cpFLDX can maintain a sustainable & high peg value & APR
- For vote-escrowed protocols: Bring constant buy pressure on dex rewards token and with the overcollateralized model, $cpFLDX help to permanently remove certain quantity of $FLDX tokens from circulating supply.
- For Champion: Treasury will generate permanent voting power, maintain a long-term revenue.
$cpFLDX is not the perfect solution, as it can be lost peg and user need to form liquidity in order to take advantage on farming APR.
Last modified 6mo ago