The dApp consists of
1) An Exchange where tokens can be swapped for each other
2) The facility to provide liquidity for the dApp
3) The facility to stake liquidity provider tokens to earn additional Fida tokens.
In future there will be a mechanism for the community to suggest and vote on proposals
Any 2 tokens can be exchanged on the Fida dApp.
There is a 0.5% fee for any tokens exchanged. 0.3% of this fee is split by liquidity providers proportional to their contribution to liquidity reserves. Swapping fees are immediately deposited into liquidity reserves.
0.2% is split pro-rata amongst Fida token holders.
Users can add their tokens to the liquidity pool to become liquidity providers.
In return they receive Liquidity Provider (LP) tokens that act as proof of their liquidity share.
With each transaction, 0.3% of the swapped token is added to the liquidity pool. As the liquidity pool grows, so does the value of LP tokens.
When liquidity providers remove they receive their share of tokens from the liquidity pool, which reflects all the fees collected.
In summary liquidity providers claim their 0.3% with every swap (value of LP tokens grow) and when they remove the liquidity (they receive their tokens back with all the fees accrued).
There is a staking contract that rewards its participants. Any LP token holder can stake them in the contract and periodically claim rewards.
The rewards are paid in FIDA tokens. The value of the reward is expressed as APR calculated from the total reward and value of all stakes.
Governance - To Be Launched
For a DAO to be decentralised, it’s important that there as many people involved in decision making as possible.
In order to incentivise this global cooperative, Fida will reward those that participate.
Once you own Fida you can vote in any poll and receive a further Fida as reward.
There will be a threshold token holders required for any proposal to be made and for any proposal to pass.