Thread by @ProtoFiProtocol

Here's a thread about why The #Fission Protocol and #Quantum supply mechanism makes everything #sustainable compared to the other DEXs!

$proto @FantomFDN @ftm_ecologist @rektfoodfarmer

Let's do a deep dive into the Quantum Supply and why Elastic supply mechanism did not work with other procotols.

In the past, the Elastic supply was linked to different factos such is the price of the token and was not dynamically adjusted.

The decrease in the supply was applied on all the multipliers and this was not "healty" because, at a certain point, when there were no more incentives to hold the native token LPs (because the APR were too low) native liquidity vanisced and the protocol died!

We figured out there were only 2 ways to improve this mechanism.

1) The elastic supply did not have to weight negatively on the native APRs
2) The elastic supply had to be correlated on something more dynamic than the price of the token.

We figured out that, one of the best measure to evaluate the healtiness of a protocol, is the ratio between the MarketCap (MC) of the token and the TotalValueLocked (TVL) into the protocol.

The #Fission, on the otherside, works in a very interesting way, because it gives to the investor an easy way to analyze what the value of a token should be (in MC terms).
The Fission pays the investor in DAI at the moment!

This means that the value paid by the fission will not fluctuate in dollars terms and it will give to the $proto a real value based on how much the platfrom will be able to generate!

Why?

Because:

1) if more people decide to swap their $elct by burning a portion of circulating $proto supply there will be less $elct staked in the Fission and the APR will go up

2) if people decide to sell their $proto, as the amount paid will stay costant vs a lower $proto price... the APR will go UP!

This will create an algorithmic sustainable $proto price and consequently a sustainable APR for everyone!

What is the only problem?

The only problem is diluition and inflation!
How we will solve this problem?
By means of our NFTs boosted Pools!

NFTs minting will burn $proto and $proto burning will push the protocol to a lower and lower inflation!