FAM is designed to be the cornerstone of WagmiDAO protocol. It’s a stablecoin which is secured and backed by the revenue of the entire protocol and the Treasury.
FAM stablecoin will be minted by staking USDC at 1:1 ratio.
After minting, the whole USDC amount is being split 75% to 25%. 75% of the amount stays in USDC and 25% of it is used instantly for GMI token buyback. This way, FAM is in fact backed by 75% USDC and 25% GMI token.
Afterwards, all the funds acquired are being sent to the Family contract. That decreases the amount of GMI token in circulation, thus pushing its price higher.
The idle USDC in the Family contract are going to be used for earning yields in different protocols, flowing back to the Treasury increasing its value steadily and strengthening it as the backbone of the ecosystem.
The FAM stablecoin will also be used in different WagmiSwap pairs, providing utility ...and creating an opportunity for a safe yield generation (stablecoin yield farming) in the WagmiDAO protocol.
As the trading volume of FAM and GMI on the WagmiSwap grows, the Treasury also grows from trading fees, as well as minting/redeeming fees. This creates a positive feedback loop and raises the floor price of the GMI token, further increasing the Yield for the Farms and Bonds, thus incentivising more Liquidity Providers to use the protocol.Read More