What is Formation FI?
Formation-FI (FORM) is a decentralized cross-chain asset management system designed to offer highly diversified portfolios that can be customized to match individual risk preferences. The platform's primary objective is to provide maturity and stability to the DeFi space. According to the whitepaper, Formation-FI allows users to build a risk-adjusted portfolio of cryptocurrencies in an open and democratized manner. This is made possible through the platform's set of tokenized, algorithmically rebalanced indexes that reflect various assets across multiple networks, thus lowering risk and saving time and money.
One of the key features of Formation-FI is its triple-utility token, FORM. The token provides profit-sharing, governance, and helps expand the DeFi ecosystem by leveraging the wisdom of the crowd to discover and support the most promising projects. FORM oversees the entire protocol and automatically configures and suggests a portfolio of yield-farming strategies matched to the user's risk profile. It assigns and calibrates asset allocations across core asset classes and mints index tokens that monitor the underlying DeFi assets and yield farming schemes through a periodic rebasing function.
FORM token holders can vote on proposals for FORM to operate the treasury through governance voting. Additionally, FORM rewards users who deposit or stake the underlying digital assets or swap among the index coins through staking+liquidity mining. FORM also grants access to investment liquidity pools that use the crowd's wisdom to incubate and fund new DeFi projects through Dark Pools.
Users hold index tokens that reflect a wide range of assets, which can be sold, bought, and swapped like any other ERC-20 token. These index tokens can even be used in additional yield farming schemes or added to a liquidity mining pool to improve yield. Formation-FI is built on progressive decentralization, a method of building a DAO incrementally, with decision-making power gradually shifting to FORM token holders over time.
The Formation-FI roadmap includes the first quarter of 2021, which marked the website launch and the whitepaper release. The second quarter of 2021 consists of the formation of smart contracts, BSC bridge development, and community launch on Telegram and Twitter. The total supply of the FORM tokens is one billion tokens.
Overall, Formation-FI offers a unique opportunity for investors to build diversified portfolios that match their risk preferences in a decentralized and democratized manner. With its triple-utility token, FORM, and algorithmically rebalanced indexes, Formation-FI brings maturity and stability to the DeFi space, making it an attractive option for investors looking to enter the space.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
Stay ahead of the competition by accessing high-quality data, advanced tools, and expert research.Try for Free