Particle Token Utility
Last updated
Last updated
PARTICLE is the protocol utility token (on Base Network) that also rewards its holders with 100% of generated protocol fee revenue.
ETH is deposited into the protocol when a user mints xETH token, while the PARTICLE token which is used for minting is burned. When the user redeems xETH tokens, the protocol pays back ETH tokens and mints the required amount of PARTICLE tokens.
The ratio of ETH and PARTICLE tokens used by the minting and redeeming function of the Particles protocol is determined by the Collateral Ratio. These mechanisms are described with examples in more details in the next pages of our documentation
Each minting and redeeming of synthetic assets like xETH on Basetasm incurs a 0.35% and 0.65% fee, respectively. These fees are distributed as ETH and PARTICLE dividends to users who lock their PARTICLE on the platform.
The capital required to mint xETH is only partially denominated in ETH. The remaining portion is denominated in PARTICLE, which is required as collateral. This requirement creates both a natural demand for PARTICLE, as well as captures value.
ETH and PARTICLE Revenue
Each minting and redeeming of synthetic assets like xETH on Particle Protocol incurs a 0.35% and 0.65% fee, respectively. These fees are distributed as ETH and PARTICLE dividends to users who lock their PARTICLE on the platform.
Capital Efficiency
The capital required to mint xETH is only partially denominated in ETH. The remaining portion is denominated in Particle, which is required as collateral. This requirement creates both a natural demand for Particle, as well as captures value.
New Particle Protocol Synthetic Assets (Roadmap milestone)
Equals more utility and liquidity for PARTICLE token holders because PARTICLE will always be a key ingredient in minting synthetic tokens.
DeFi Integrations (Roadmap milestone)
Adoption and integration of Particles' synthetic assets with other DeFi projects to develop and unlock new trading strategies (ve(3,3) liq, leverage farming...)
Early Exit Penalty Revenue
Besides ETH and PARTICLE revenue for users who stake their PARTICLE, stakers also earn 50% of the penalty fee from farmers who claim their rewards early.
