What Is Ferro Protocol(FER)? Complete Guide & Review About Ferro

What Is Ferro Protocol (FER)?

Built on the Cronos blockchain, Ferro Protocol is a StableSwap AMM protocol that allows users to exchange with low slippage and minimum fee and farm tokens by creating more efficient pools consisting of highly correlated assets, as well as allowing better composability between protocols in the Cronos ecosystem. Ferro Protocol offers two main features:

Ferro Swap Users can exchange one token with another with customisable slippage as long as both tokens are available in any of the pools within the protocol. Liquidity Pools Users can become liquidity providers and earn incentives by staking their LP tokens into the liquidity farm. You will be rewarded with native tokens $FER together with the opportunity to lock your tokens with different maturity options to boost your returns and share revenue from the protocol swap fees.

Important Points Table Of Ferro Protocol

How to Buy the Continental & Trade On Exchange?

Ferro Swap

One of the main purposes of Ferro is to facilitate exchange of one token with another in any pools within the protocol.

• Within the same pool Token exchange will be done by adjusting the balance of token from the same pool with no or very small fee (example: exchanging DAI to USDC in a “USDC, DAI, USDT” pool)
• Cross pool Protocol will route the transaction through the most efficient way (smart routing) by scouring through the different pools to achieve minimum slippage (example: exchanging ETH to USDC, involving “ETH-WETH” pool and “USDC, DAI, USDT” pool)

Swap Tokens

Step 1: Connect your preferred Crypto Wallet with Ferro.

Step 1: Connect your preferred Crypto Wallet with Ferro.

Step 2: On our swap page, select your desired tokend.

Step 3: Input the amount of source token you would like to swap

Step 4: Review the swap details and the number of tokens to be received

Step 5: Click ‘Confirm’ to submit your transaction

Step 6: Confirm the transaction on your wallet to proceed with the swap

Step 7: Wait for the final confirmation. Check out your new tokens in your wallet! On Cronos, this shouldn’t take more than 1 minute

Ferro Pools

1. Base Pool

Base Pool typically consists of 2 or more highly correlated tokens with the following variations:

1. 1.Standalone Stablecoin pool (usually treated as the “main pool”)
2. 2.Lending pool
3. 3.Pegged / Yield Bearing token

2. Meta Pool

Meta Pool provides a combination of Base Pool plus 1 or more tokens.

This mechanism brings several advantages to platform users:

• Allows Ferro to list less liquid assets
• Shielding liquidity providers of Ferro Base pool from systemic risks
• Prevents the dilution of existing pools
• More volume for the protocol

Example:

Pairing Ferro base pool [USDC, USDT, DAI] with TUSD.

The Meta pool will consist TUSD (on a standalone basis) and Ferro Base 3Pool LP tokens

Users has flexibility to choose how the deposit token will be allocated:

1. 1.Split equally among all stable coins (4 tokens in this scenario)
2. 2.Convert it into Ferro Base 3Pool LP token
3. 3.Select specific stable coin to deposit

Deposit / Withdrawal Incentives

Similar to the Swap feature, the typical liquidity pools in Ferro will also carry a mechanism to incentivise/disincentivize users to LP a particular token, in order to balance the proportion of tokens in the pool (a.k.a. Deposit Bonus / Withdrawal Penalty).

• Users depositing underweighted token (vs other token in the pool) will receive Deposit Bonus
• Users withdrawing underweighted token (vs other token in the pool) will be charged Withdrawal Penalty

When users provide liquidity to Ferro Protocol, they will receive the corresponding Liquidity Provider (LP) Token as proof of their participation. These LP tokens can then be staked to receive the following emission reward:

• 60% of the reward in the form of $FER token, available to be harvested immediately
• 40% of the reward will be directly converted into $xFER at the prevailing exchange rate, and will be automatically directed into 1 month locking vault. Users can choose which vault duration to allocate this portion of the rewards into