FTX Volume Token

Trader’s manual

Overview

FTX Volume Token price depends on 24-hour USD volume on FTX exchange. The price dependency is established via rebase (change of token supply) that happens if the actual token price deviates from the target token price. The target price is calculated as “24-hour USD volume on FTX exchange” divided by 1'000'000'000. For example, the target price on Sep 08 would be around $1.1 (based on FTX Volume Monitor).

FTX Volume Token allows the traders to express their views on FTX exchange:

• If you think FTX volume will increase, you can buy the FTX Volume Token.
• If you think FTX volume will decrease, you can sell the FTX Volume Token.

Read the technical specification below to learn more about the mechanics that drive the token price.

Planned listings

• SideShift
• Uniswap
• FTX (how about this, Sam?)

Specification

Basic parameters

• Type: ERC-20 token
• Initial supply: 500'000 (five hundred thousand)
• Symbol: FVT
• GitHub: https://github.com/DenisGorbachev/tracker-token

Rebase parameters

• Interval: 1 day (minimum time that needs to elapse between two sequential rebases)
• Deviation threshold: 5% (rebase only happens if the price deviation is higher than deviation threshold — either lower or higher)
• Lag: 4 (a divisor for supply delta, used to make smoother supply changes)
• Length: 1 day (rebase can happen anytime within interval length — needed to prevent frontrunning)
• Offset: 0 (rebase can happen anytime after rebase interval started)

Note: rebase parameters may change, but only to make rebases faster (not slower)

Target price calculation algorithm

• Take the “Adjusted Volume” of the FTX exchange as reported on https://ftx.com/en/volume-monitor.
• Divide by 1'000'000'000.

Rebase formula

Wallet balance * (Current price - Target price) / (Target price) * 1 / Lag factor

• “Wallet balance” is how many tokens you have before rebase.
• “Current price” is the price of a single token, calculated as a 24H TWAP price from Uniswap trading pair.
• “Target price” is 24-hour USD volume on FTX exchange divided by 1'000'000'000.
• “Lag factor” is a variable used to protect from abrupt supply changes. A lag factor of 1 means “no lag” (supply is adjusted immediately to cover the difference between the current price and the target price). A lag factor of 5 means “5 rebases” (supply is adjusted gradually, in 1/5 increments, to reach target supply after 5 rebases).

Any questions?

Speak with developer: Denis Gorbachev.