# Fenture Finance Fenture Finance is a supercharged, autonomous DeFi protocol focused on venture capital investments, yield maximizing market strategies, and expanding the utility of the Web3 and DeFi ecosystem by building custom investment products and partnering with growing projects that lay foundations for the future. We’re natively based on the Aptos & Sui Chain, which is an extraordinarily swift, and inexpensive platform. Typically transactions cost a few cents and only take a couple of seconds to complete. At Fenture Finance, we believe strongly that cross-chain functionality is the key to unlocking the full potential of the blockchain and we’re working to expand our offering across to other chains. Fenture Finance is a decentralized autonomous organization controlled by its governance token, FFD (Fenture Finance Dao). To participate in the DAO, users need to buy FFD tokens from the open market. These tokens can be used to vote on protocol proposals and direct the future of the project. They can also be staked in a revenue sharing contract to benefit from the treasury performance. {% content-ref url="/pages/FUylJ9uIDQTDjeEyPuDe" %} [The Objective of Fenture Finance](/mission/the-objective-of-fenture-finance) {% endcontent-ref %} {% content-ref url="/pages/5tN3a6dlSAkX2U9eErHV" %} [The FFD (Fenture Finance DAO) Token](/the-ffd-fenture-finance-dao-token/what-is-ffd) {% endcontent-ref %} # Introduction Fenture.io is a supercharged, autonomous DeFi protocol that spawns crypto economy with innovative financial tools built on Aptos and Sui. **Fenture Finance Introduction** Fenture Finance is a supercharged, autonomous DeFi protocol focused on venture capital investments, yield maximizing market strategies, and expanding the utility of the Web3 and DeFi ecosystem by building custom investment products and partnering with growing projects that lay foundations for the future. We’re natively based on the Aptos & Sui Chain, which is an extraordinarily swift, and inexpensive platform. Typically transactions cost a few cents and only take a couple of seconds to complete. At Fenture Finance, we believe strongly that cross-chain functionality is the key to unlocking the full potential of the blockchain and we’re working to expand our offering across to other chains. **Nature of Fenture Finance** Fenture Finance is a decentralized autonomous organization controlled by its governance token, FFD (Fenture Finance DAO). To participate in the DAO, users need to buy FFD tokens from the open market. These tokens can be used to vote on protocol proposals and direct the future of the project. They can also be staked in a revenue sharing contract to benefit from the treasury performance. # The Objective of Fenture Finance Fenture Finance provides nascent businesses — and industries — the chance to flourish on Aptos & Sui while users can generate profit within a stable manner. **The Goal** The goal of the Fenture Finance is to create a decentralized, autonomous, self learning asset management protocol that is monitored by the DAO community for the emerging Web3 ecosystem. As from the experience of FTX and Three Arrows, developing a capital fund that provides 100% transparency is important for the current blockchain development. because a fundamental goal of the Web3 financial movement is to provide a fully transparent ecosystem that serves the needs of its backers, token holders as well as the community. **Key Features** * Provide a DeFi Asset Management Protocol that is holding 80% of the majority tokens and utilize 20% of investment to access the early projects. * Fenture Finance provides full transparency on the underlying assets. * The Asset Management Protocol is controlled by its governance token * The Asset Management Protocol value demonstrates the value of FFD token * Provide an extremely efficient stablecoin trades by implementing the invariant swap on Aptos & Sui, which will be significantly lower slippage for stablecoin trades for the current illiquid market. * Fenture Finance will provide a Fenture pool which is an implementation of the invariant swap with 2 or more tokens. * The Asset Management Protocol will utilize the functionality of the invariant swap to provide liquidity via plain pools and arbitrage. {% content-ref url="/pages/iLV3nP9IWdjQ7DXGwdJC" %} [Fund Structuring](/mission/fund-structuring) {% endcontent-ref %} {% content-ref url="/pages/FrzNwgzsFHoVlnvIna84" %} [Stable Swap (Stage 2)](/mission/stable-swap-stage-2) {% endcontent-ref %} {% content-ref url="/pages/SrDiPyzT6aFQvacJcPC4" %} [Bridge & Fund utilisation (Stage 3)](/mission/bridge-and-fund-utilisation-stage-3) {% endcontent-ref %} # Artificial Intelligence in Finance Fenture is a DeFi protocol that aims to provide innovative and AI-driven financial tools for managing assets in the crypto space. **Brief Introduction** 1. Staking: a. Fenture's AI analyzes market trends and user behavior to identify the most attractive staking opportunities in real-time. b. Based on this analysis, Fenture's AI adjusts the staking rewards and incentives offered to users, in order to maximize participation and generate the greatest possible returns for all stakeholders. c. Fenture's AI also monitors the performance of staked assets over time, and makes adjustments to the staking program as needed to optimize returns and mitigate risk. 2. Bonding: a. Fenture's AI identifies the most attractive assets for bonding, based on factors such as market conditions, user demand, and asset liquidity. b. Fenture's AI determines the optimal discount rate to offer for these assets, based on market conditions and other relevant data points. c. When users bond assets, Fenture's AI monitors the performance of these assets over time, and adjusts the discount rate as needed to maintain balance and optimize returns for all stakeholders. 3. DeFi Loans: a. Fenture's AI analyzes market trends and user behavior to identify the most attractive loan opportunities in real-time. b. Based on this analysis, Fenture's AI adjusts the interest rates and other terms offered to borrowers, in order to maximize participation and generate the greatest possible returns for lenders. c. Fenture's AI also monitors the performance of loans over time, and makes adjustments to the loan program as needed to optimize returns and mitigate risk. 4. DeFi Lending: a. Fenture's AI identifies the most attractive assets for lending, based on factors such as market conditions, user demand, and asset liquidity. b. Fenture's AI determines the optimal interest rates to offer for these assets, based on market conditions and other relevant data points. c. When users lend assets, Fenture's AI monitors the performance of these assets over time, and adjusts the interest rates as needed to maintain balance and optimize returns for all stakeholders. In each of these workflows, Fenture's AI is constantly analyzing market trends, user behavior, and other relevant data points to identify opportunities and risks in real-time. By leveraging advanced data analytics and machine learning techniques, Fenture's AI is able to optimize returns, mitigate risk, and ensure that all stakeholders in the platform benefit from a transparent and efficient DeFi ecosystem. **Core Values** 1. More Accurate Predictions: One of the key benefits of incorporating AI into a DeFi Asset Management Tool like Fenture is that it can enable more accurate predictions of asset prices. AI can analyze large amounts of data and identify patterns and trends in the market that may not be visible to the human eye. By leveraging machine learning algorithms, Fenture can potentially make more informed investment decisions and generate better returns for its users. For example, Fenture could use AI to analyze historical data on asset prices, trading volumes, and other market indicators to identify patterns and trends that may indicate future price movements. This information could be used to inform investment decisions, such as whether to buy, sell, or hold a particular asset. 2. Better Risk Management: Another benefit of incorporating AI into a DeFi Asset Management Tool like Fenture is that it can help with risk management. By analyzing market data and identifying high-risk investments, Fenture can take steps to mitigate those risks and protect its users' assets. For example, Fenture could use AI to analyze data on the performance of different assets and identify those that have a high risk of default or loss. It could then adjust its investment strategy to reduce exposure to those assets and prioritize investments that have a lower risk profile. 3. More Efficient Asset Management: In addition to prediction and risk management capabilities, AI can also help to automate certain aspects of asset management, such as rebalancing portfolios and managing liquidity. This can potentially enable Fenture to provide more efficient and cost-effective services to its users. For example, Fenture could use AI to automate the process of rebalancing its portfolio to maintain a target asset allocation. This would help to ensure that the portfolio remains diversified and aligned with users' investment goals. 4. Benefits to DeFi Loans and Lending Functions: Finally, incorporating AI into a DeFi Asset Management Tool like Fenture can potentially offer benefits to DeFi loans and lending functions. By analyzing data on borrowers' creditworthiness and risk profiles, AI can help to improve the accuracy of loan approvals and reduce the risk of default. For example, Fenture could use AI to analyze data on borrowers' credit scores, payment histories, and other factors to assess their creditworthiness and determine the appropriate interest rate for the loan. This could help to ensure that loans are only approved for borrowers who are likely to repay them, reducing the risk of default and protecting lenders' assets. # Utilisation of AI Fenture is a DeFi protocol that aims to provide innovative and AI-driven financial tools for managing assets in the crypto space. By incorporating AI into its platform, Fenture can potentially offer a range of benefits to its users, including more accurate predictions, better risk management, and more efficient asset management. Let's explore each of these benefits in more detail. **Lending Protocol** Managing decentralized lending platforms can be a complex and challenging task, requiring sophisticated risk management and underwriting capabilities to ensure that loans are issued and repaid in a timely and responsible manner. This is where AI can play a critical role. AI-driven lending allows for more lending options, as the algorithms can analyse and structures relevant data to determine the appropriate terms for the loan. This can lead to more accessible and affordable lending options for individuals who may have previously been excluded from traditional lending markets. With real-time data analysis and risk assessment, AI-powered lending platforms can make faster and more accurate lending decisions. This not only saves time and resources but also reduces the risk of fraudulent activities or default payments. By leveraging advanced algorithms and machine learning techniques, Fenture's platform can provide lenders with a range of powerful tools and capabilities to help them manage risk and optimize lending outcomes. For example, Fenture's AI algorithms can analyze borrower data and behavior to identify potential default risks, and adjust lending rates and collateral requirements accordingly. Moreover, Fenture's platform can also provide lenders with real-time data and analytics on lending performance, allowing them to make informed decisions about portfolio management and strategy. By automating many of the key functions of lending management, Fenture's platform can help lenders to operate more efficiently and effectively, while also reducing the risk of fraud and other forms of financial malfeasance. Another key benefit of Fenture's AI-driven platform is its ability to provide users with highly personalized suggestions and strategies. By leveraging advanced data analytics and machine learning algorithms, Fenture can analyze a wide range of data points and factors to create strategies that are tailored to the specific needs and goals of each user. For example, Fenture's platform can analyze user investment histories, risk preferences, and other relevant factors to create customized investment portfolios that are optimized for each user's unique needs and goals. By taking a highly personalized approach to portfolio management, Fenture's platform can help users to achieve their financial objectives more efficiently and effectively, while also reducing the risk of losses and other financial setbacks. **FFD in AI** Fenture's fully-mortgaged FFD token offers additional benefits to its users. By being backed by crypto assets on the chain in the scope of Fenture DAO, the intrinsic value of FFD is secured, providing greater stability and confidence to its users. The self-learning algorithm control of Fenture also ensures that the price of FFD remains stable and not subject to sudden fluctuations or manipulations. Overall, the combination of AI and blockchain technology offers a unique opportunity to revolutionize traditional financial services and bring more inclusivity to the financial market. By utilizing AI-driven asset management tools like Fenture, users can benefit from more efficient, secure, and personalized financial services, resulting in better returns and more accessible financial options. **Staking and Bonding** Fenture offers a range of services that further enhance its value proposition to users. These services include staking and bonding, both of which are facilitated through Fenture's AI-powered platform. Staking allows users to earn consistent rewards over time as passive income. By staking their FFD holdings, users contribute to the overall liquidity of the platform and help maintain its stability. In return, they receive a share of the platform's profits, resulting in long-term, sustainable returns. Bonding, on the other hand, allows users to trade various crypto assets for FFD at a discounted price. This not only helps to boost the platform's liquidity but also provides users with an opportunity to diversify their crypto holdings and benefit from the stability and intrinsic value of FFD. Through these services and its AI-powered asset management tool, Fenture is creating significant value for users by offering more efficient, secure, and accessible financial services. By leveraging the power of AI and blockchain technology, Fenture is able to provide customized and personalized financial services that are not only more efficient but also more inclusive. Fenture's staking and bonding services further enhance its value proposition to users, providing an opportunity to earn passive income and diversify their crypto holdings. Overall, Fenture's AI-driven DeFi platform offers significant benefits to users, providing more efficient, secure, and inclusive financial services that are not available through traditional financial systems. With the continued development of AI and blockchain technology, the potential for innovative and sustainable financial services is virtually limitless, and Fenture is at the forefront of this exciting new frontier. Fenture's AI-powered DeFi platform also has the potential to revolutionize the way loans are provided in the decentralized finance ecosystem. In traditional lending, banks use credit scores and other metrics to determine a borrower's creditworthiness and set interest rates. However, in the decentralized lending market, there is no central authority to assess creditworthiness, and borrowers must rely on the collateral they provide to secure loans. Fenture's AI-powered lending platform overcomes this challenge by using advanced algorithms to assess borrower risk and determine interest rates. By analyzing data from multiple sources, Fenture's algorithms can provide a more accurate picture of a borrower's creditworthiness and set interest rates accordingly. In addition, Fenture's lending platform is fully automated, allowing borrowers to access loans quickly and easily without the need for extensive documentation and verification processes. This not only makes the lending process more efficient but also helps to reduce costs and increase accessibility, particularly for individuals who may not have access to traditional banking services. Furthermore, Fenture's lending platform is fully decentralized and non-custodial, meaning that borrowers retain control over their assets and can access loans without having to trust a centralized authority. This provides greater security and transparency for users, while also reducing the risk of fraud and theft. **Management of Liquidity** Liquidity is essential for the proper functioning of any financial market, and the decentralized nature of DeFi presents unique challenges in this area. However, Fenture's AI-powered platform is able to address these challenges by using advanced algorithms to manage liquidity more efficiently and effectively. Fenture's AI-powered platform can analyze market data in real-time and make automated trades to maintain liquidity levels. This helps to prevent market disruptions and ensure that users can easily buy and sell assets on the platform. Fenture's platform is able to adapt to changing market conditions and adjust liquidity levels accordingly. By continuously learning from market data, Fenture's algorithms can anticipate changes in liquidity needs and respond quickly to maintain stability and prevent disruptions. Fenture's AI-driven DeFi platform offers a range of benefits to users, including more efficient and accurate asset management, personalized investment strategies, and improved lending and liquidity management. By leveraging the power of AI and blockchain technology, Fenture is creating an innovative and sustainable platform that has the potential to transform the world of finance. Fenture's AI-driven DeFi platform offers a range of other features and capabilities that can help users to maximize their returns and optimize their portfolio management strategies. Fenture's platform offers automated rebalancing of investment portfolios, allowing users to adjust their holdings in response to changing market conditions without the need for manual intervention. This helps to ensure that portfolios remain diversified and aligned with users' goals. Fenture's platform also provides users with access to advanced analytics and data visualization tools that can help them to better understand market trends and identify new investment opportunities. By leveraging AI and machine learning algorithms to analyze large amounts of data, Fenture's platform can provide users with valuable insights and suggestions that can help them to make more informed investment decisions. Overall, Fenture's AI-driven DeFi platform represents a significant step forward for the decentralized finance ecosystem. By leveraging the power of AI and blockchain technology, Fenture is creating a more efficient, transparent, and accessible financial system that can benefit users of all kinds. # Fund Structuring Fenture.io is a super-charged, autonomous DeFi protocol that spawns crypto economy with innovative financial tools built on Aptos and Sui. **Fenture Finance Fund** Our protocol allows users to bond-in various crypto assets to be Protocol Organized Assets (POA) for FFD at a discounted price – providing stability to the protocol and and yield generation opportunities for FFD holders. 1. Bond-in (Performance based FFD bonus on bonding-in) 2. Staking Function (Allowing users to stake FFD / LP tokens to gain yield) 3. Auto buy-back function (Auto buyback based on Token price) Highlights * Provides a decentralized, autonomous asset management protocol that utilizes a combination of governance and autonomous self learning, AI-driven portfolio management strategies to maximize returns on treasury investments; that includes holdings of major tokens and early stage projects. * The Auto buy-back mechanism will be triggered once the FFD token price drop exceeds 20%. * The Buy Back Amount will be based on the equation (Buy-Back-Amount = FFD marketcap/underlying assets \* x) * Fenture Finance provides full transparency on the underlying assets. * The asset management protocol is controlled by the protocol’s governance token – FFD # Stable Swap (Stage 2) The easiest way to understand this stage is to see it as a decentralized exchange. This stage’s main goal is to allow users to swap their tokens on either Aptos or Sui through it with low slippage. Our mission is to solve the current low liquidity, large slippage issue on Aptos and Sui, by pioneering the following: 1. A Swap Function 2. 3 Pool / Multi-pool staking 3. Auto arbitraging Highlights * Partial funds of Fenture.io will be utilized to assure the liquidities of stablecoins on Aptos and Sui. * Arbitraging will be partially automated via smart contracts; with discretionary developments from the dev team in unstable market conditions only. * Provides extremely efficient stablecoin trades by implementing the invariant swap on Aptos & Sui, which will significantly lower the slippage for stablecoin trades in the current illiquid market on Aptos and Sui. * Provides a Fenture pool which is an implementation of the invariant swap with 2 or more tokens.
# Bridge & Fund utilisation (Stage 3) **Bridge & Fund utilisation** Fenture Finance’s AUM comprises of various crypto assets, including stablecoins, pegged assets, major tokens and early stage projects. At stage 3, Fenture.io will start integrating onto other chains, such as ETH and EVM compatible chains – the goal of this stage is to create a new type of AMM that allows for extremely efficient trading and hence lower the risks of non pegged assets across different chains. Liquidity will be used more effectively by allowing the pool to readjusts its internal price to the highest liquidity region without creating losses for the pool. Tokens that can be included: DAI/USDC/USDT/ETH/WBTC and more…
# Fenterest (Lending) ## How do I supply and earn from Lending? Click "Supply" next to the asset you wish to supply in the "Supply" section. Choose the amount you want to give, then send your transaction\*. Upon confirmation of the transaction, your supply is successfully recorded, and you start receiving interest. * A separate approval transaction is necessary for the initial supply of one asset. ## How much will I earn? Holders of aTokens get ongoing rewards that change in line with market circumstances based on: * **The interest rate payment on loans** - Suppliers split the interest payments made by borrowers based on their average borrowing rate multiplied by their utilization rate. The yield for suppliers increases as reserve utilization increases. * **Flash Loan fees** - A portion of the Flash Loan fees, or.09% of the Flash Loan volume, goes to suppliers. Every asset has its own supply and demand market, as well as an APY (Annual Percentage Yield) that changes over time. To assess the rate evolution, you may obtain the average yearly rate over the previous 30 days. The main part of the app also has more information about the reserve overview of each asset. ## Is there a minimum or maximum amount to supply? No minimum or maximum quantity is required; you may supply however much you choose. But, it's crucial to remember that for really little sums, it's conceivable that the procedure' transaction costs are more than the anticipated profits. When delivering extremely little amounts, it is advised that you take this into account. ## Can I borrow using stable and variable rate at the same time for one asset? No, you can only borrow money at stable or variable interest rates; changing to your preferred rate will affect all of the debt you have on that asset. In spite of this, you may specify various borrow rates for various assets. ## How do I withdraw? Go to the "Dashboard" area and choose "Withdraw" to make a withdrawal. Choose the withdrawal amount, then submit the transaction. You may also utilize your "aTokens" as liquid assets without making a withdrawal. If there is not enough available money (that is not borrowed), you would need to wait for fresh liquidity from suppliers or borrowers who are repaying their debts. ## Can I opt-out my asset from being used as a collateral? Yes. You have the option to deselect an asset after delivering it so that it is not utilized as collateral. The opt-out is accessible in your dashboard's "Supply" section. Just toggle the "use as collateral" button off of the asset you don't want to be used as collateral for. As long as the money is not actively being used to borrow and the withdrawal would result in a liquidation of your debts, you are permitted to withdraw your assets without choosing not to use them as collateral. # Fendit (Borrowing) ## Why would I borrow instead of selling my assets? Selling your assets entails giving up and closing your position on that specific asset. As a result, if you long the asset, you would not be eligible for any possible value gains on the upside. You can get working capital (liquidity) by borrowing without selling any of your assets. Users mostly borrow to cover unforeseen costs, increase the value of their assets by leveraging, or take advantage of fresh investment possibilities. ## How do I borrow? You must provide any asset that will be used as collateral before borrowing. Just click "Borrow" for the asset you wish to borrow in the Borrow section after that. Determine the amount you require depending on the supplies you have on hand that can be used as collateral for the loan. Once you've decided on a steady or variable rate, complete your transaction. Then, you are free to modify your rate as often as you choose. ## How much I can borrow? The maximum amount you may borrow is determined by the value you have supplied and the liquidity that is readily available. For instance, if there isn't enough liquidity or if your health factor prevents it, you can't borrow an asset. ## What is the difference between stable and variable rate? In the short term, stable rates function as a fixed rate, but they can be rebalanced in the long run in reaction to alterations in the market environment. The rate that is depending on supply and demand in DID is known as the variable rate. The steady rate is the greatest choice for planning how much interest you will have to pay since, as its name suggests, it will remain fairly consistent. Depending on the state of the market, the variable rate may eventually out to be the best one. With your dashboard, you may choose between the steady and variable rate whenever you want. ## When could my stable rate be rebalanced? Although it is anticipated that a stable rate rebalancing will be improbable, it will occur if the average borrow rate is less than 25% APY and the utilization rate is more than 95%. ## How do I switch my interest rate type? Simply navigate to your dashboard and select the "APR Type" switch button for the asset you desire to apply the rate change to. This will change your interest rate from stable to variable. ## How much would I pay in interest? The borrowing rate, which is determined from the asset's supply and demand ratio, determines the interest rate you pay when borrowing assets. Moreover, a variable interest rate varies often, but a stable interest rate keeps interest rates consistent. Under the Borrowings part of your dashboard, you can always discover the rate at which you are now borrowing money. ## What is the health factor? The health factor is a numerical indicator of how safe your depository assets are compared to your borrowings and their underlying worth. The higher the value is, the safer the state of your funds are against a liquidation scenario. If the health factor reaches 1, the liquidation of your deposits will be triggered. A Health Factor below 1 can get liquidated. For a HF=2, the collateral value vs borrow can reduce by 1 out of 2: 50%. The liquidation threshold of your collateral in relation to the value of your borrowed funds determines the health factor. ## What happens when my health factor is reduced? Depending on the value fluctuation of your supplies, the health factor will increase or decrease. Your borrow position will be improved if your health factor rises since it will make it less likely that the liquidation threshold will be met. The risk of liquidation rises if the value of the assets you have pledged as collateral against the borrowed assets falls instead, as this also lowers the health factor. ## When do I need to pay back the loan? The loan repayment duration is not predetermined. You can borrow money for an ambiguous amount of time as long as your position is secure. But, as time goes on, the interest that has accumulated will increase, lowering your health factor and raising the possibility that your deposited assets may be liquidated. ## How do I payback the loan? Simply click the "Repay" button next to the asset you borrowed and want to return in the Borrowings area of your dashboard to complete the loan repayment. Choose the repayment amount, then complete the transaction. ## How do I avoid liquidation? You can repay the loan or deposit more assets to raise your health factor in order to prevent the decline in your health factor from forcing liquidation. Repaying the debt would boost your health factor more than the other two alternatives. # Terminologies **Loan To Value (LTV)** LTV is the fraction of the dollar value of collateral that users can use to borrow. An 80% LTV means that 100 USD worth of collateral can be used to borrow max 80 USD worth of loan.
**Liquidation Threshold** The ratio of the borrow amount to the value of the collateral at which users are liable to liquidation is known as the liquidation threshold. A 75% liquidation threshold indicates that the position is under-collateralized and may be liquidated if the value exceeds 75% of the collateral. Specifically, say that a user deposit 100 USD worth of APT and borrow 70 USD worth of assets, according to the current liquidation threshold of 75%, the user is subject to liquidation if the value of the assets that they borrow has increased to 75 USD. For each account, the liquidation threshold is calculated as the weighted average of the liquidation thresholds of the collateral assets and their value. #### **Liquidation Bonus** Liquidation Bonus is the extra amount of collateral that the liquidator will get for taking the risk of liquidating the users. #### **Flash Loan Fee** The fee percentage that is charged for the flash loan. > *For each account users opened, it has the following parameters* #### **Total Borrowing Power** Borrowing Power is the total value of assets you are able to borrow with your current deposit (in USD).
#### **Available Borrowing Power** Available borrowing power is the total borrowing power subtracts the risk adjusted borrowing value #### **Liquidation Borrow Value** Your account's total risk-adjusted borrowing value at which it is susceptible to liquidation #### **Risk Factor** Your account is vulnerable to liquidation when the risk level surpasses 100%. # Liquidation **Borrow Factor** We employ a two-sided strategy in which the borrow factor is also used to increase the market value of a borrower's liabilities. With this method, we may take into account the risks associated with individual assets for both upward and downward price fluctuations. These risks are incorporated in borrow factors and asset-specific Loan to Value Ratio (as on Compound). This strategy ultimately implies that each borrower's liquidation threshold is customized to the unique risk profiles of the assets they are borrowing and using as collateral. To give an example, suppose a user has $1,000 worth of USDC, and wants to borrow APT. How much can they borrow? If USDC has a collateral factor of 0.9, and APT has a borrow factor of 0.7, then a user can borrow up to $1,000 \* 0.9 \* 0.7 = $630 worth of APT. At this level of borrowing, the risk-adjusted value of their collateral is $1,000 \* 0.9 = $900, and the risk-adjusted value of their liabilities is $630 / 0.7 = $900. If APT increases in price, then the risk-adjusted value of their liabilities will also increase to >$900, and then they will be eligible for liquidation. The buffer allowing for liquidation is $1,000 - $630 = $370. ### **Liquidation Calculations** When a user's total borrowing reaches a threshold, or when the risk factor reaches 100% or higher, liquidation takes place. The risk factor is an indicator of a user's total liquidation risk. The danger decreases when users provide more collateral to the system. Conversely, the danger rises when users take on more debt.
When a user has reached its liquidation threshold, up to 50% (in terms of market value) of the total borrowed asset is sold to the liquidator at a discounted price to repay a portion of the loan. # Interest Rate Curve Fenture utilizes Aave’ s interest rate model which is calibrated to manage liquidity risk and optimise utilisation. The use of the protocol determines the rate automatically. ### Interest Rate Parameters * $$U\_{optimal}$$: $$U$$*(Utlisation Rate)* is an indicator of the availability of capital within the pool. The optimal utilisation rate U optimal split the interest rate curve into two parts to manage liquidity risk in the pool. * Base Variable Borrow Rate * Variable Rate Slope 1 * Variable Rate Slope 2 ### Interest Rate Model $$ if U\ Of those newly minted FFDs: * 20% goes to the treasury (used to invest in new projects) * 80% becomes staking rewards to be paid to others who have staked FFD.
Bonding is a win-win situation because the user receives FFD with yield, and the treasury is receiving more assets such as ALT and APT to back the FFD token. It enables participants to earn an extra bonus for token minting. Because the FFD token is pegged to a basket of assets, participants have a level of reassurance that price fluctuations will return to their intrinsic state. ### # What is Bond in? **What is Bond in?** Fenture Finance bonds are similar to traditional bonds. Fenture Finance offers users a way to bond in crypto assets for FFD tokens with an additional bonus; by swapping either a handful of cryptocurrencies or liquidity provision (LP) tokens from another exchange. FFD token will be distributed regularly to the bond-holders until the epochs reaches 28 and one epoch is roughly 6 hours. *Here is an Example* FFD costs $100 on the open market, our community members would like to purchase 100 FFD, the total cost will be $100 \* 100 = $10000 USDT. If the bonding bonus rate is 10%, Users will be able to get 110 tokens with $10000 USDT through the bonding mechanism. The total amount of 110 FFD token will be progressively release via the 28 Epochs, and each epoch will be released 110/28 =3.9285714 token release in each Epoch. Community members will be incentivised to sell their liquidity in exchange for the project’s native token. This also grows the protocol’s liquidity and lets users get their hands on the token without some of the risks of traditional liquidity provision, which is what happens when tokens in a pool change prices (either up or down), sometimes reducing people's exposure to the more lucrative token. # What is DID? DID - a DeFi Stablecoin that is 1:1 USDT Backed and has access to the efficient Fenture Lending Protocol * DID token is 100% collateralized token with 100% USDT stable coin * DID will be supported by AptosLaunch vesting swap * Staking DID tokens will be rewarded with a 20% yearly yield with FFD {% content-ref url="/pages/2KVy1jdlpaHvoK76ImGM" %} [BONDING](/functionalities/bonding) {% endcontent-ref %} {% content-ref url="/pages/I9RBhtqJ3LM2xJhkvIyp" %} [Staking](/functionalities/staking) {% endcontent-ref %} {% content-ref url="/pages/cVwrRnOXMKCBeGHKA1lU" %} [Fully mortgaged](/the-ffd-fenture-finance-dao-token/fully-mortgaged) {% endcontent-ref %} {% content-ref url="/pages/QT8UMXxisf3M0QPFmb2Q" %} [Algorithm control](/the-ffd-fenture-finance-dao-token/algorithm-control) {% endcontent-ref %} # Leverage Using AI technology as our loan engine has the benefit of enabling users to leverage their positions in crypto assets. At Fenture, we have created a one-click user interface that enables you to do so instantly. ### How the process works: To open a leveraged position, users need to deposit the crypto assets they want to leverage. Our pools allow withdrawing more DIDs than it should be possible, as long as the collateral required is supplied to the position eventually, within the same transaction. \ To better explain this, let's use the example of a user that wants to leverage his yvUSDT position: * **Step 1 and 2** - The user selects the desired leverage, obtains the yvUSDT, and deposits them as collateral. * **Step 3** - Given the selected leverage, the protocol borrows the respective amount of DIDs. * **Step 4** - These DIDs are swapped into USDT (current price peg and slippage play an important role here). * **Step 5** - These USDT are deposited into a Yearn Vault to receive yvUSDT. * **Step 6** - These yvUSDT tokens are deposited back into Fenture to collateralize the user's position. This process can be visualized using the following infographic: *You'll see that everything is done in a single transaction, thus only one gas fee will be needed. The entire transaction fails if any one of these stages is unsuccessful.*\ \ ***Note that if the token is not an Interest Bearing Token, STEP 4 and STEP 5 are substituted by a simple market buy of the token the user is leveraging.*** # What is FFD? Fenture’s governance token, (FFD), is an Aptos L2 token used to operate Fenture Finance. The users control the platform collectively. and the venture capital fund value demonstrates the value of FFD token {% content-ref url="/pages/2KVy1jdlpaHvoK76ImGM" %} [BONDING](/functionalities/bonding) {% endcontent-ref %} {% content-ref url="/pages/I9RBhtqJ3LM2xJhkvIyp" %} [Staking](/functionalities/staking) {% endcontent-ref %} {% content-ref url="/pages/cVwrRnOXMKCBeGHKA1lU" %} [Fully mortgaged](/the-ffd-fenture-finance-dao-token/fully-mortgaged) {% endcontent-ref %} {% content-ref url="/pages/QT8UMXxisf3M0QPFmb2Q" %} [Algorithm control](/the-ffd-fenture-finance-dao-token/algorithm-control) {% endcontent-ref %} # Fully mortgaged FFD is fully mortgaged because it is backed by crypto assets on chain in the scope of Fenture DAO. The intrinsic value of FFD is backed by the protocol’s total asset under management. The treasury will encompass a mixture of BTC, ETH, APT and other coins, which is decided by governance vote. # Algorithm control Although Fenture allows the market to largely determine the price of FFD, the protocol keeps the market cap of the token equal to the AUM. When FFD trades at a premium, the agreement will mint FFD and sell it to the open market to increase supply and drive down prices. If FFD trades at a discounted price, DAO will also intervene and will buy back and destroy tokens to reduce supply and increase prices. Anyone can participate in the Fenture DAO economy through activities such as staking or bonding. # Free floating The value of FFD is not pegged to another asset (such as the U.S. dollar), but is determined by the free market. Both staking and bonding are ways for the protocol to have ownership of FFD and its liquidity. Users are always motivated to bond and stake. If they believe the price of FFD will go up, staking it removes supply will push the price higher, which is a positive payoff. Bonding does not affect the price, but will provide liquidity to the protocol, which is also a positive payoff. When users sell FFD, it will push the price down, which is a negative payoff. # Market Dynamics
An increase in staking and bonding can trigger an increase in the supply of FFD tokens. When this happens, an increase in FFD token purchases from the market often precedes. In turn, this increases the price of the FFD token, allowing the protocol to sell FFD tokens at a higher rate. Accordingly, stakers receive a higher yield, and bonders receive a more significant discount. Also, this series of events increases the capacity for the creation of new bonds. However, the same is true in reverse. Moreover, declining demand can reduce staking rewards and the capacity for the protocol to mint new assets. # Socials & Links Get in touch with AptosLaunch to share your thoughts with us! ### Website [Fenture.io](https://fenture.io/) ### Social Media [Discord](https://discord.gg/zv4JyAXAuB) [Twitter](https://twitter.com/FentureFinance) ### Crew3 [Community Quests & Tasks Crew3](https://fenturefinance.crew3.xyz/)