How FORGE.SX will support Blockchain Ecosystem.
What is FORGE.SX?
Firstly, FORGE.SX is a newly launched DeFi Protocol. Essentially, individuals seeking to trade real-world assets on the blockchain will have a new alley with this launch of a Forge.SX DeFi Protocol.
Secondly, Forge.sx enables anyone to forge, trade, or provide liquidity for real-world assets.
How does FORGE.SX Work?
Mainly, Forge.sx empowers anyone to mint and trade synthetic versions of real-world assets with the convenience of Blockchain technology.
Secondly, there are a number of assets available in the protocol, including commodities, stocks, and even foreign currencies.
Especially, popular stocks such as fTSLA are already available on the platform. Further, several plans are already in motion for additional stocks in the future.
Why do FORGE.SX offers mint trade of Stocks and other Synthetic Assets
Firstly, there is a lot of potential and value in synthetic assets on the blockchain. Secondly, you can have access to global financial markets and mint synthetic digital assets. Regardless of their financial status.
Additionally, synthetic investments like stocks are among the most valuable. Although risks are involved in stock investment, because the market is regulated, they offer greater reassurance for cryptocurrency investors like you.
Basically, FORGE.SX aims to diversify the assets available on the platform to attract new investors who are interested in yielding returns with “Real World Assets”.
Aims of FORGE.SX
Firstly, Forge aims to bring back confidence in synthetic assets on the blockchain, Especially, after the LUNA/UST crash, a lot of people have concluded that it is impossible to create synthetic assets on the blockchain.
Additionally, people think that such protocols are unachievable and they will end up. However, a team of Forge is convinced that synthetic assets are not only possible but will become a critical part of the DeFi ecosystem in the future.
Similarly, to DAI Stablecoin, the team at Forge intends to deliver an efficient and simple-to-understand protocol that will forever change the mind of the naysayers.
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Forged Assets
Firstly, Forged Assets are standard ERC-20 tokens. So that they can only be minted from the Ovens against a collateral deposit to put it simply. To explain, all assets have 18 decimals.
Each asset has 3 variables :
- Chiefly, a data contract from Chainlink. Additionally, it is used to calculate the current collateralization ratio (c-ratio) of an oven.
- Secondly, a minimum c-ratio is not possible to mint more fAssets if an oven’s c-ratio is below this minimum.
- Thirdly, a liquidated c-ratio – Anyone will be able to close an oven and earn a fee from ovens where the c-ratio is lower than the liquidable c-ratio.
Mainly, this liquidation process makes sure that all fAssets are always over-collateralized, as any oven which is inside the (100%;liqCratio) range can get liquidated by anyone (including bots) to put it simply.
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How to Use Ovens?
Firstly, to create a new Oven, you need to deposit USDC collateral and choose a starting collateralization ratio. Which is defined by the following formula.
collaterilaztion_ratio=usdc_collateral/f_asset_amount*f_asset_price_usdc
For example, You want to mint fXAU (Synthetic Gold). Real-world gold is currently trading at $2000/oz. Suppose you deposit 5000 USDCA and choose a collateralization ratio of 125% = You will mint (5000/1.25)/2000=2fXAU.
Secondly, closing an Oven is the opposite of opening an oven. Further, which means you will need to burn the fAssets minted by the Oven and you will recover the locked collateral.
Thirdly, once an oven is opened, it is possible to reuse it for the same fAsset, so you don’t need to have more than 1 oven for each type of fAsset at the same time.
Further, you can deposit more USDC into the Oven, It will increase the c-ratio. Or else you can withdraw collateral from the Oven, decreasing as long as the c-ratio is greater than the minimum c-ratio.
To conclude, you mint more fAsset, decreasing the c-ratio. Additionally, you can only mint as long as the c-ratio is greater than the minimum c-ratio.
Forged Token
Chiefly, the Forged Token is the governance coin of the Forge Protocol. Thereby, in the future $Forge holders, will have the power to propose and vote on changes to the platform rules.
Along with this, a portion of the platform’s revenue will be distributed among the $Forge holders.
Forged Protocol Fees
Firstly, all protocol fees are currently collected inside a FeeCollector contract. Further, on every trade, a 0.3% fee is paid by you.
0.25% of that fee remains in the LP token and is gained by the LP holders. 0.05% is earned by the protocol and goes to the FeeCollector contract.
Mainly, every time collateral is withdrawn from an Oven, 0.5% is earned by the protocol and sent to the FeeCollector contract.
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Is this a DeFi Platform?
Firstly, Forge.sx is a brand new DeFi protocol enabling anyone to mint and trade real-world assets with the convenience of blockchain.
Secondly, commodities, stocks, or foreign currencies will be available in the protocol for you.
All that is needed is a reliable Oracle data feed, such as Pyth Network.
Chiefly, the assets on the Forge are called assets and can be forged and burned in the Ovens by anyone.
Especially, as standard ERC-Tokens assets can only be minted against collateral deposits.
Thereby, you can begin by opening an oven using USDC as collateral for the creation of synthetic assets.
Further, you may burn the fAssets minted by closing the oven, and they will be able to recover the collateral that has been locked.
Forge Governance Token
Dex Price $0.1978
Inflation +12/min
Supply 265.4k
Marketcap $52.5k
fXAU Gold 1oz
Dex Price $2020
Oracle Price $2011
Supply 53.31
Marketcap 107.7k
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Conclusion
Firstly, Forge is a brand new developing protocol so please keep in mind that there are always technical risks, such as hacking, software bugs, or other vulnerabilities that could compromise the security of the platform or its users.
Mainly, FORGE.SX is supported by a reliable Oracle data feed that connects the world of Blockchain to the Forge.sx platform.
Furthermore, a competent and experienced team is also available at the company, with a strong background in Dapp development as well as DeFi.
In order to provide you with the best service in the industry, Forge.sx consistently performs research and development.
Mainly, investing in cryptos is often subject to regulatory and legal risks. Especially, since the legal status of cryptocurrencies and blockchain-based technologies is still evolving. These regulatory changes might affect your investment.
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