The Future of Firebird
Firebird’s 1st Birthday, Reposition and Refocus
TLDR;
- We are shifting our focus purely to aggregation. This is a key, strategic repositioning of all developer efforts and resources to focus 100% on optimizing our aggregator.
- To ensure Firebird is sustainable both for maintaining and growing its user base, the FBA token (or Firebird Aggregator Token) will be introduced with innovative methods to help keep the product we all know and love running and innovating. This token will live on Fantom, and will consolidate existing tokens.
- The new token has numerous methods to make this happen. We encourage you to read the Tokenomics section in full to better understand our long term strategy. The short-version is; the FBA token is minted and given back to users when they use Firebird for swapping tokens on a daily epoch. This token can then be staked to earn a portion of platform fees.
A new direction
For those unfamiliar, Firebird Finance has always been an advocate of doing everything under one protocol, a ‘one-stop-shop’. This approach, designed to accommodate all users, spread our resources thin and reduced our performance. During the past 12 months, we have seen an unprecedented amount of activity on our DEX Aggregator, outranking all other products.
With these statistics in mind, we are now committing 100% of our resources to fine tuning and optimizing our industry leading aggregation service on every chain that needs us.
As a result of this repositioning, all other Firebird products related to yield farming and auto-compounding will be moved to legacy.firebird.finance and will no longer be in development.
Our mission is simple: To expand on the laser focused model of establishing a permanent position on every blockchain as the best DEX aggregator.
First multi-chain DEX aggregator with best-rates and cash-back.
Swap, Save, Earn, only with Firebird
Firebird Finance is extremely excited to unveil our next-gen profit-sharing token. Introducing Firebird Aggregator Token, or FBA. FBA is a token with multi-chain utilities, designed for maximum revenue. First-of-its-kind, FBA is equipped with an multichain cashback feature that rewards users for swapping, while also saving them on swap fees. After earning through swapping, FBA can be staked for profit-share from all chains where Firebird Aggregator is operational for incredible additional rewards.
Tokenomics
Tokenomics are the lifeblood of a protocol, and FBA is no different. This strategic change has been the product of months and months of intense research, development and testing. We strongly believe that the migration from multiple different tokens to a single overarching token whilst utilizing Fantom as it’s home-base, coupled with our unique cash-back mechanism will propel Firebird into the spotlight of DeFi innovation.
Why Fantom?
This decision was simple, and for one good reason. The community surrounding the projects built on Fantom, as well as the foundation themselves have always been incredibly supportive of our project, and ultimately a project cannot survive if the community surrounding it is not flourishing. And regardless of recent events, the Fantom community continues to support each other and build with a common goal in mind, to help each other succeed. Because only that way can we reach the DeFi utopia we all want to see and be a part of.
Initial supply
Minting Mechanism:
A conventional farming token will indirectly inflate its own token supply by providing rewards to stakers, generating unsustainable selling pressure in the process. $FBA will not follow this method, instead adopting a new approach of minting after a successful transaction. This new minting system will not flood the market with ‘dead’ reward tokens (which are usually instantly dumped), but only tokens generated from performance fees.
Important: The value of FBA is hard capped at a minimum of $0.1 for minting. This means if current price of $FBA is lower than $0.1 then A = tx performance fees / $0.1
- Maximum supply of FBA is 21 million tokens. Before all 21 million tokens have been minted, we will ‘abuse’ the tokenomics (high value cashback) to acquire users for Firebird aggregator as much as possible.
- $FBA is a deflationary token. The higher the price, the less $FBA that is being minted. Therefore, there is a chance that all 21 million $FBA tokens will never be fully minted.
- The aim is to ensure Firebird reaches at least 100 million USD daily trading volume on multiple chains. This will create a steady stream of income even if $FBA tokens stop minting.
- Users using our Aggregator on non-Fantom chains will be able to claim $FBA on Fantom later. (Snapshot is automatic at 12 AM UTC daily )
* A ‘Qualified TX’ is a transaction where Firebird can collect fees from whitelisted tokens. This list is defined per chain where the Firebird fee is applied ( please refer to the table below).
Fee Allocation:
The revenue generated from our DEX Aggregator will be divided and utilized at rates set by the DAO.
Firebird will have a fixed base infrastructure cost of $20k (server running costs, etc.) while the remaining amount will be divided into 3 categories. After the first month, allocation will be updated by a DAO vote and then repeated for every month (similar to Curve Gauge).
- Treasury: Dev team, management team and marketing funds.
How to vote:
FBA token holders will lock their FBA and receive veFBA, which provides voting weight to then vote on the gauge.
Referral Program:
As mentioned in the Minting Mechanics, Firebird will be offering referral rewards on every successful transaction (FBA mint). Firebird has previously implemented an referral program that has now been adopted into $FBA’s token structure. The referral program will have two eligibilities:
- User enters another user’s referral link
- User swaps via a user or project’s connection to the Firebird API
Supporting metrics
Going off current metrics, volume and fees, $FBA’s fully diluted value (FDV) should be $10.5M, which is still ridiculously cheap and we have the statistics to back that:
Currently, Firebird aggregator is projected to make $2m profit per year on Fantom alone with average daily trading volume of $15m (current profit is already at $700k after 3 months).
We are aiming for $100m daily trading volume on multiple chains and with another 6–9 months of growth, we expect to expand to at least 10 EVM chains. Even with those expectations, that will only equate to capturing 2.5% of current total trading volume on all EVM DEXs ( $4B total daily est. currently)
At $100m daily trading volume and 0.03% fees on average, we capture $30k daily in fees which means $11m per year profit, so $10.5m FDV is incredibly undervalued. At our current revenue of $2m per year, that means FBA has a P/E of 5 (considered to be highly undervalued in traditional business).
HOPE/HOPE-P to FBA Migration
Firebird’s current farming tokens, HOPE (Polygon) and HOPE-P (BSC) will be discontinued and current holders will be provided with a migration platform to burn their HOPE/HOPE-P and receive our new multi-chain profit-sharing token, $FBA on Fantom.
The rate of this migration is defined by: Last 30days Price Average + Premium
- Emission for HOPE and HOPE-P will be stopped on June 13th, 2022.
- Users have 180 days to claim FBA on the Fantom side, linearly claimable
Moving forward
The Firebird team is extremely excited to implement our new token and mechanics. We will pioneer a new DeFi reward system by providing multichain decentralized-cashbacks for our users.
Firebird is committed to our promise of offering the best swapping service with the lowest fees and will continue expanding to new chains and integrating new liquidity sources. In conjunction with the incredible success of Firebird DEX Aggregator, we believe $FBA will be the most successful DeFi utility and profit-sharing token on the market.
App: https://app.firebird.finance/
Discord: https://discord.gg/n9tJnwMS4D
Twitter: https://twitter.com/FinanceFirebird
