Fairly Manipulated Randomness Finance Model (FMRFi)

What is FMRFi?

FMRFi stands for Fairly Manipulated Randomness Finance Model which is first introduced by Wayne, the Founder of Modulus Protocol. FMRFi was born with the main purpose of bringing fairness, transparency, excitement, a sense of manipulation, opportunities to significantly increase profits, and especially to solve the problem of "The higher profit it is, the higher the risk". Similar to other Defi models, FMRFi products also generate yields by using the users' deposited tokens. This can be done by staking to other platforms such as https://apestake.io/, holding rebase tokens such as stETH, or participating in Liquidity Providing or Yield Farming activities.

In normal cases, the whole yield would be distributed proportionally to the participants.

However, in the case of FMRFi, not all the participants would receive the yield. Instead, in each epoch, the platform would distribute the yields to a limited amount of users (normally 3) who are transparently picked with the support of a middle randomness generation service such as Chainlink's VRF.

That's not all! The most interesting point of FMRFi is that every user is granted freedoms to manipulate their possibility of winning the prize.

How different FMRFi is?

The whole community has witnesses a few similar models. Some of them have been successful and have brought about amazing rewards to the community. One of them is Asymetrix. However, their tokenomics model make them difficult to convince users to stay longer. FMRFi was born to change this.

The unique point is how incentivizing tokens are distributed. In other models, the platforms' tokens are used to incentivize the users to participate in epoches. However, they are allowed to sell the tokens immediately, and users have no reasons to keep the tokens in their pockets. Different from them, in the FMRFi models, some parts of the token supply can be used for the incentivizing purposes; however, they are mandatorily locked for a certain period. This would prevent users from dumping the price of the token, and would also keep them staying with the platforms longer. Besides, by holding the native tokens locked, they would have more chances of winning the rewards, which make them happy to keep the tokens locked.

How users can manipulate their winning chances?

The chance of winning of each user is determined by "accumulated tickets" in each epoch. Deposit Amount and Time Holding are the two main factors contributing the the growth of accumulated tickets, which is the result of integrating the total time a user has held tokens in the protocol, and the amount they have deposited. In simple terms, to get higher chance of winning the rewards, or to get more accumulated tickets, users are suggested to deposit more tokens, and to hold them in the protocol longer. This would not just help the users to increase their winning probability, but also would help the protocol to generate higher yields which eventually means there would be more rewards for the users to expect and wait for. To learn more about how the accumulated tickets are calculated, How are lucky winners chosen would help.

As mentioned before, by holding the tokens locked, users would have more chances of winning. In details, locking the native tokens for a certain period would grant them Cheat Tickets in each Epoch, which can be distributed to increase their winning probability. More about Cheat Tickets

How FMRFi can solve the problem of "The higher profit it is, the higher the risk"?