In the CrossFi ecosystem, all synthetic assets use the native token CRFI as the only collateral asset. Users can stake CRFI tokens with a collateral ratio of 200% and at the same time mint the basic synthetic asset value unit cUSD (1:1 pegged to the US Dollar). After the user mints the basic synthetic asset unit cUSD, it can be exchanged for any advanced synthetic asset based on it, such as synthetic Bitcoin, synthetic Ether, synthetic stock or synthetic asset ETF.
In the initial stage, in order to effectively control the debt risk in the entire system, a large number of other assets will not be introduced as collateral assets. In the future, even if other collateral assets (such as BTC or ETH) are introduced, an independent debt pool will be created to control the system risk.
In addition to serving as the only collateral asset, CRFI will also serve as a native asset providing incentives for the nodes of the entire network, and also acting as the payment medium and value unit of on-chain services such as on-chain transfer, transaction, asset minting, and burning.
In order to further incentivise users to mortgage assets, a certain percentage of the fees in the entire CrossFi system will be drawn to a common fee pool, and then distributed to all CRFI token stakers. In addition, only users who have staked CRFI tokens can activate the right to participate in the community governance of CrossFi. CRFI tokens will have an annual inflation rate of 5%-10%, of which 80% of the inflated tokens will be allocated to all CRFI token stakers, and the remaining 20% of the new tokens will be allocated to the Stabilization Fund to hedge the market risk.
CRFI will also serve as the collateral asset and trading pair for the creation of synthetic assets. Whenever a synthetic asset, such as cUSD, is minted, a collateral ratio of 200% of CRFI tokens must be staked. CRFI token holders can earn rewards by staking their CRFI and securing the network through validator nodes. CRFI stakers will receive staking rewards and service fees in exchange for providing the security, computation, and storage as required by the network. CRFI has a built-in inflationary mechanism at an annual inflation rate of 5-10%. 80% of these tokens will be redistributed pro-rate to CRFI stakers, with the remaining 20% allocated to a stabilization fund. The stabilization fund is intended to help control inflation, ensure proper community incentives, and generally, hedge against risk. The stabilization fund will provide the liquidity pool for the platform stablecoin - cUSD.
1.Current: current interest is not fixed, the principal and mining income are available at any time, and the interest rate is floating.
2.Regular: Regularly interest is not fixed, the principal is withdrawn at maturity, the mining income can be withdrawn at any time, and the interest rate is floating.
The feature of CrossFi product is single token lock-up and double mining, depositing FIL and CRFI can mine two kinds of tokens.
The rewards of the same token are based on the token to produce income. For example, the cFIL rate of return is 30% after depositing cFIL for 90 days, the return after maturity is calculated as follows:
Different tokens are based on the USDT to produce income. For example, the 90-day CRFI yield of cFIL is 100%, the price of FIL is 60, and the price of CRFI is 2U. Then the total CRFI income obtained after maturity is: cFIL total deposit*FIL token price*100%/365*90/CRFI token price.
The daily total output of CRFI is fixed, and the interest rate of each sector is adjusted with the adjustment of the total pledge amount.
Locked cFIL interest rate:
- User's daily mining output = daily fixed mining output * user cFIL weighted capital amount / platform cFIL total weighted capital amount
- User cFIL weighted capital amount = user locked cFIL amount * locked product weight
- The total weighted amount of platform cFIL funds = (current lock-up amount * weight) + (90days lock-up amount * weight) + (180days lock-up * weight) + (365days lock-up * weight) + (540days lock-up * weight)
Locked CRFI interest rate:
- User's daily mining output = daily fixed mining output * user CRFI weighted capital amount / platform CRFI total weighted capital amount
- User CRFI weighted capital amount = user locked CRFI amount * locked product weight
- The total weighted amount of plstform CRFI funds = (current lock-up amount * weight) + (90days lock-up amount * weight) + (180days lock-up * weight) + (365days lock-up * weight) + (540days lock-up * weight)
Mining weight table: