Fathom Protocol
Crypto Overview
Overview
Fathom Protocol is a decentralized stablecoin protocol built on the Fantom Opera blockchain. The protocol aims to create a decentralized stablecoin called FXD that maintains a soft peg to $1 USD through overcollateralization with other cryptocurrencies.
Purpose and Utility
The primary purpose is to provide a stable medium of exchange within the Fantom ecosystem. Users can mint FXD stablecoins by depositing supported cryptocurrencies as collateral. The protocol uses algorithmic mechanisms and incentives to maintain the FXD peg.
FTHM token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters, upgrades, and treasury management.
Business Model Analysis
The protocol generates revenue through liquidation fees and stability fees charged when users mint FXD. These fees are distributed to FTHM stakers. The basic business model appears to involve legitimate exchange of value and creation of useful financial infrastructure.
Development and Adoption
The protocol maintains active development on GitHub. However, current adoption and usage metrics are limited, with relatively low Total Value Locked (TVL) compared to similar protocols.
Token Distribution
Token distribution includes allocations for the team, early investors, and community. Team tokens are subject to vesting schedules to align long-term incentives.
Crypto Impact
To assign a comfort level investing in Fathom Protocol from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Fathom Protocol.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
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