⁉️FAQ section

FAQ section

Basic Information

What is Particles Protocol and its vision?

Particles Protocol is a DeFi project aimed at developing and popularizing synthetic tokens. With Particles Protocol we introduce a decentralized solution to scale up volume of the Layer-2 chains by utilizing governance and synthetic token by using our partial collateralized design where, for example, our synthetic token supply of xETH will be partially backed by ETH and partially by the Particle token. The protocol aims to establish synthetic tokens as decentralized and sustainable assets which are widely used as an Synthetic currency in the digital world.

Is there an audit? Particles Money is a soft fork of Fantasm Finance which has previously been audited by Obelisk.

Obelisk

Was there an IDO or presale?

Particle token has no premine, IDO, ICO, VC or presale.

What is the utility of Particle ?

All platform fees are being distributed to Particle lockers.

Particle is also a governance token for the Particles Money ecosystem. Particle token holders will be given voting power in the upcoming Particle Money DAO.

Are there any fees?

There is a 0.35% fee for minting and 0.65% fee for redeeming, transferred to the Locking Distribution.

There is a 50% penalty fee for claiming farming rewards early (before vesting period ends)

Mechanics

What is a Collateral Ratio (CR)?

Particles Money is using a Collateral Ratio (CR) for Minting and Redeeming process. There will be a minimum Collateral Ratio which is set by governance.

CR will be adjusted every hour at the step of 0.1% (up or down) ▶️ 60min-Twap over 1 ETH -> CR down ▶️ 60min-Twap under 1 ETH -> CR up

How to mint xETH ?

xETH can be minted at any time. A certain amount of ETH and Particle is required based on the current Collateral Ratio (CR). For example, when CR is at 90% and you want to mint 100 xETH 90 ETH will be deposited into ETH pool reserve and 10 ETH will be converted to Particle/ETH LP (Protocol Owned Liquidity=POL)

I minted xETH only with ETH but CR was at 90%. How?

The minting UI allows you to use only ETH even if the CR is under 100%. The protocol will automatically buy the needed Particle for you on the open market and use it for Minting process. Magic.

How to redeem xETH back to ETH?

xETH can be redeemed at any time. It works the same way as the Minting function. When redeeming a certain amount of ETH and Particle will be given back to you based on the current Collateral Ratio (CR). For example, when CR is at 90%: If you want to redeem 100 xETH -> 90% will be returned as ETH and 10% as Particle

What is the mechanic behind xETH to keep its peg?

xETH can be freely minted and redeemed by anyone, creating profit opportunities for arbitrageurs.

Arbitrageurs are the vital actors of our protocol, ensuring and strengthening the peg of xETH to the value of ETH.

How does the protocol prevent Flash Loan?

Basetasm is secure again flashloan types of attacks due to a simple yet absolutely effective 2-step minting and redemption mechanism. When a user wants to mint or redeem xETH, 2 transactions (2 steps) need to be performed.

What is Protocol Owned Liquidity (POL)?

A portion of ETH using to mint xETH will be converted to Particle/ETH LP depending on the current CR. This is giving our native token another utility and increases the token liquidity.

How to solve the Ledger <> Metamask Mint issue?

When trying to mint xETH while using a Ledger, Metamask shows a "blind signing" error. Apparently there is an issue between Ledger and Metamask with some specific function names (like: Mint). Solution: You have to enable Enable Display Contract Data (debug data)

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