Economic Framework
Pioneering Sustainable Growth - The Economic Framework of the 0Fx protocol represents the heartbeat of our optimization efforts, focusing on creating a robust economic structure that maximizes user benefits and supports real-world problem-solving solutions through blockchain technology. This framework is meticulously designed to unlock the full potential of our ecosystem, ensuring that users receive optimal rewards in relation to their investment risks.
Foundations of the Economic Framework:
User-Centric Remuneration
At the core of our economic model is a commitment to offering users the best possible remuneration for their engagement within the ecosystem. This goes beyond traditional reward structures, allowing users to benefit from unique earning opportunities not found in other ecosystems.
Real-World Problem Solving
The economic structure is intricately linked to the development of solutions that address real-world challenges using blockchain technology. By fostering projects that have tangible impacts, the 0Fx protocol goes beyond speculative ventures, contributing to the maturation and integration of blockchain solutions in practical scenarios.
Risk-Adjusted Optimization
Our economic model is organized into successive levels, each blending different revenue sources to classify financial products within the ecosystem based on their risk-reward ratio. This approach allows users to navigate the ecosystem with a clear understanding of the potential returns in relation to the associated risks.
Optimizing Economic Structure:
Stage 1: Internal Banking System
Advantage: Collateral-based lending through token issuance for ecosystem loans and future trading. For tokens and assets within the protocol and its ecosystem, loans are free of charge for staking only. Users can leverage funds from any stage to obtain collateralized loans, optimizing their rewards through staking the borrowed funds.
Stage 2: Pegging on Ethereum
Advantage: This stage involves pegging the 0Fx token to Ethereum, allowing it to benefit from Ethereum's performance during the bullish cycle of 2024-2025. This strategic positioning leverages Ethereum's strong presence in the DeFi market, offering robust growth opportunities for 0Fx.
Stage 3: Ethereum Validating
Advantage: Instead of using native Ethereum for 0Fx token pegging, we utilize a derivative version known for its reliability and audits, currently holding $5 billion in total value locked. Specifically, the pegging will be on the Liquid Restaking Token of Ethereum (weETH) from the Ether.Fi protocol. This derivative accumulates staking rewards and benefits from both Ethereum's performance and the staking returns, along with rewards from EtherFi and EigenLayer for restaking.
Stage 4: 0Fx Token
Advantage: The 0Fx token is the heart of the 0Fx protocol ecosystem, serving as the base currency for all ecosystem assets. It can be used throughout the protocol and ecosystem, enabling the collection of all on-chain transaction fees from the volumes engaged on the 0Fx tokens and also from volumes engaged on the tokens of its ecosystem due to its routing system. Additionally, through its market arbitrage capabilities, the 0Fx token ensures that 100% of arbitrage opportunities are captured, benefiting investors and the wider protocol community.
Stage 5: dApps Tokens
Advantage: Decentralized applications within the 0FX protocol ecosystem that make user benefits from all on-chain transaction fees collected from the volumes engaged on these applications. Additionally, these fees enable us to capture 100% of arbitrage opportunities across different marketplaces for the ecosystem's dApp tokens. Furthermore, users gain 100% of the revenues generated by each application that are not redistributed as investment product returns.
Stage 6: Ecosystem Index
Advantage: An index offering diversified returns across all ecosystem applications, accumulating all seven revenue sources of inferior stages in one product. Users benefit from the average performance of all dApp tokens, and the strategy rebalancing allows for additional gains. This index aggregates the five revenue sources from lower stages, restaking via the Oracle, data exploitation, and active farming of various missions within the 0Fx protocol, enhancing the underlying asset's performance and staking interest through future liquidity transition plans.
Stage 7: Restaking Ecosystem Oracle
Advantage: An oracle to validate transaction integrity for the ecosystem's SaferBridge application. This oracle allows users to stake any of their investments to validate inter-chain transactions, earning additional income from restaking, enhancing the security of transactions while generating new revenue streams.
Stage 10: Liquidity Transition
Advantage: At a certain stage in the protocol's development, there will be a transition towards utilizing solutions provided by upcoming applications. This includes auto-aggregating liquid-staking/restaking/lending baskets, offering diversified pegging of the 0Fx token. This strategy enhances performance and revenues through staking returns while managing associated risks.
The Evolution Continues
The Economic Framework is dynamic, evolving with the growth of the ecosystem, user needs, and advancements in blockchain technology. Upholding a user-centric and problem-solving approach, the 0Fx protocol aims to set new standards for sustainable economic models in the blockchain space.
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