Apr 22, 2021
An overview of the economics behind Atomix’s governance token – ATMX.
After the successful launch of Mettalex, the decentralized commodity derivatives exchange, Atomix is the second protocol to join the Fetch.ai decentralized finance (DeFi) ecosystem.
Similar to Mettalex, Atomix will not go through any traditional seed or private rounds of funding. The project will effectively be seeded by the Fetch.ai community.
With a circulating supply of less than 100,000 tokens on day one, Atomix pioneers a unique approach of launching a project in the blockchain space. The Atomix tokenomics ensure a fair and broad token distribution to the true and loyal supporters of the Atomix protocol and the Fetch.ai ecosystem.
What is Atomix?
The Atomix lending protocol provides a bridge between secured real-world assets and decentralized finance. By introducing real-world collateral, Atomix makes an evolutionary step in DeFi lending where the predominant collateral is currently cryptocurrency.
Who is Atomix for?
The protocol serves two types of users: Liquidity Providers and Borrowers.
By supplying their stablecoin liquidity to Atomix, Liquidity Providers receive an annual percentage yield that is competitive to both – traditional and decentralized finance alternatives. That yield is composed of protocol-generated returns and ATMX governance token rewards.
Benefits to Liquidity Providers include:
- Competitive Returns – Supplying stablecoin liquidity to Atomix entitles providers to protocol-generated returns.
- Generous ATMX Rewards – In addition to the protocol-generated returns, USDT Liquidity Providers receive ATMX governance tokens as rewards.
- Low Risk – The Atomix protocol manages a pool of ATMX and USDT to ensure that Liquidity Providers receive their original liquidity.
- Withdraw Liquidity at Any Time – Liquidity Providers can withdraw their stablecoins at any time – 24/7/365.
The Atomix protocol enables Borrowers to tokenize the security taken over real-world assets and use it as collateral for borrowing stablecoin loans.
Making the value of real-world assets available on the blockchain represents an important step towards the maturation of the DeFi space where the predominant collateral is currently cryptocurrency.
Benefits to Borrowers include:
- Competitive Borrowing Rates – Gain access to capital at rates typically available only to larger entities thanks to DeFi liquidity and cryptocurrency-based incentives.
- Attractive Loan-to-Value Ratio – Depending on the volatility of the secured asset, the LTV ratio can be highly competitive.
- The Only Source of Capital You Need – Finance your projects by acquiring all the capital you need from a single source – Atomix.
- DeFi Flexibility – No early repayment fees and ability to add more assets at any time.
- User-Friendly Online Interface – Manage all your secured assets in a single web-accessible interface.
- Certainty of Capital – You can access capital as soon as security is taken over your asset and your ACT token is minted.
The ATMX Token – an Overview
The ATMX tokens confer on the holder the right to vote on changes in the core protocol and protocol parameters.
For supplying USDT to Atomix, Liquidity Providers will receive xUSDT tokens which serve as a receipt for their deposit. Providers of xUSDT in the system receive a reward in ATMX tokens.
ATMX tokens are distributed to Liquidity Providers in proportion to the amount of xUSDT they have provided to the Atomix protocol, calculated as a percentage of the total number of xUSDT in the system.
A more detailed overview of Atomix governance will be shared soon.
ATMX Token Allocation
The total number of ATMX tokens that will be created is 100,000,000.
Liquidity Providers Rewards
82.7% of all ATMX tokens (82.7 million) are assigned as rewards for Liquidity Providers.
Phoenix Program Distributions
1% of the total ATMX supply (1m) will be distributed to FET stakers through the Fetch.ai Phoenix program. The first ATMX stakedrop has been announced already and is expected to launch on April 13, 2021. 750,000 ATMX tokens will be distributed to users staking FET at staking.fetch.ai over a 3 month period.
For more information, please refer to the official announcement.
5% of all ATMX (5m) will be dedicated to a reserve which will be tapped into as a source of liquidity and to support marketing and listing activities. 500,000 tokens of that reserve will be put aside to be used for bootstrapping the initial ATMX markets. The rest (4.5m) will be vested over 2 years.
Incentives for Partners and Collaborators
8.8% (8.8m) of the total ATMX supply will be dedicated to partners and collaborators who help with the promotion of the Atomix protocol and assist in the process of network effect development. These tokens will be unlocked over 1 year.
2.5% (2.5m) of all ATMX tokens will be shared with the Atomix team and vested for 3 years.