Factor Flywheel

⬆️ FCTR = ⬆️ Earning Opportunities

Simplified

Detailed

1. Depositor Incentives & Rewards -> Distributed as liquidity incentives, strategy Depositors earn additional FCTR when automating their yields on Factor. Earnings can be amplified via staking FCTR and voting on the distribution of protocol emissions.

2. More Deposits -> Greater rewards attract more deposits into the Factor ecosystem.

3. New Protocol Revenue Streams -> Protocols seeking more revenue channels will integrate with Factor to enable their protocol to be mixed-and-matched seamlessly.

4. More Strategy Options & Value Facilitated -> Strategists get even more options to drag-and-drop various integrated protocols into one automated strategy. Depositors get an endless array of simplified strategies to choose from, Strategists are rewarded for sharing their alpha, Protocols generate more revenue due to increased volume.

5. Long Term FCTR Incentives -> 50% of Factor protocol revenue is used to buyback FCTR which is then redistributed to stakers who can then restake gain even more influence and rewards. More FCTR staked with an increased demand for FCTR results in upsized yields for depositors which facilitates more revenue for Strategists and Protocols.

6. Repeat ad infinitum.