CoinMarketCap takes a deep dive into ForTube (FOR), a DeFi lending platform that runs on an open-source blockchain and offers crypto-finance solutions to its users.
ForTube (FOR), previously known as the Force Protocol, works on an automated algorithm and smart contract that supports multiple cross-chain assets. The ForTube (FOR) token holders can take part in governance activities, and stake their tokens on the ForTube platform.
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How Does ForTube (FOR) Work?
By utilizing the pooling of funds, ForTube (FOR) platform allows users to earn interest or provide collateral to borrow a crypto asset. This mechanism works similarly to the collateral loan system in the conventional finance world. The users who deposit their crypto assets are given interest-bearing tokens which accumulate deposits plus the generated interest over a certain period.
The asset markets are divided into two sections, namely the Main Market and the Innovation Market. The Main Market covers the top collateral assets, such as Ethereum, Bitcoin, and other stablecoins, while the Innovation Market consists of those assets that have a limited operation time and carry some risk as well. This segregation is done to make sure that the risk is divided into two rather than one single pool.
Vision Behind ForTube (FOR)
ForTube is the product of the Force Protocol Foundation Ltd. which was founded by Pete Mardell, who is also the CEO and founder of the company. The vision behind creating the ForTube (FOR) protocol is to encourage crypto investment in the DeFi sector by promoting financial inclusion through financing and trading services and providing a reliable platform for crypto businesses.
Roadmap of ForTube (FOR)
The ForTube (FOR) project has already achieved more than 50% of its milestones in a short period. Completed targets including the introduction of physical assets into the DeFi protocol, release of ForTube's Versions 3.0 and 3.5, addition of a governance structure, and aggregation of farming functions. In the near future, the ForTube (FOR) platform plans to implement a multi-chain ecosystem architecture, provide support for mainstream public chains, and support more physical assets to complete its objective of becoming an all-around decentralized financial service provider.
Unique Features of ForTube (FOR)
Governance Structure
The governance structure allows FOR token holders to stake their tokens and obtain rewards depending on the number of tokens staked on the ForTube network. The holders of the FOR tokens can also vote on key decisions for each lending pool. These decisions may include suggesting changes to the platform, like interest rate models, risk control factors, and future upgrades.
This diagram shows the overall governance structure of the FOR token and how it works:
Membership System
To encourage the members of the ForTube community to participate in the project's ecological development, It has launched a membership plan which provides a monthly revenue of 8% for the participating members. Each membership can be upgraded depending upon the star value that increases with the participation. After each month, the top 10% of members are issued rewards, the star value is reset again.
Education Academy for Users
There is a dedicated educational academy for users to learn how the ForTube platform works. It includes the explanation of NFT, liquidation, DEX, and other aspects of the DeFi ecosystem that will spread the knowledge of the ForTube products and an understanding of the DeFi world.
Full Positions Guarantee
The ForTube (FOR) protocol follows the ''full positions guarantee'' mechanism, which means that whenever a borrower deposits their collateral assets, the calculation of the health index which is the reflection of the health of a user's debt is calculated in relation to the total borrowed and deposited assets of a user. This provides a huge benefit to the user as it reduces the risk of a single asset plummeting and having a significant negative impact on the health index.
Risk Control Framework
The ForTube (FOR) protocol provides three types of risk control management strategies which include financial, smart contract, and oracle security.
Financial Security
The financial security consists of individual-level and system-level security which make sure that the user is protected from financial risks that happen either at the contract or token level. Unauthorized use of contract management accounts, abnormal user openings, sudden and significant decline in the health of positions, and so on, are some of the examples of the financial security provided by the ForTube protocol.
Smart Contract Security
The smart contract security of the ForTube platform consists of experienced contract developers, an audit and monitoring system, and multiple audit mechanisms. To make sure that smart contracts are protected, the ForTube (FOR) protocol has employed highly qualified contract developers who make sure that every security vulnerability in the smart contract is resolved to avoid huge losses.
The audit and monitoring system makes sure that the smart contract is properly accounted for, always highly available, and operates throughout the day without any delays. The audit mechanism means that the ForTube (FOR) protocol will be evaluated multiple times by a well-known security agency both before and after its launch. This is done to make sure that there are no errors or loopholes in the code that can be seen as a security threat.
Oracle Security
The ForTube platform is hosted on an oracle system and the presence of 40+ currencies makes it important to secure the platform at all times. To do this, the ForTube platform frequently upgrades and optimizes the oracle system to ensure the accuracy of price feeds, improving the decentralization, security, and scalability of the entire platform.
ForTube (FOR) Tokenomics
There is a total circulating supply of 639,520,000 FOR tokens with a max supply of 1,000,000,000.
85% of the tokens will be used for community programs which will further be divided into three parts. 30% for community ecosystem construction. 25% for The Force Protocol Foundation, and the remaining 30% for the investors and community donations.
The remaining 15% will be reserved for the founders and the development team as a reward for their efforts and incentivizing new team members.
ForTube (FOR) Price
ForTube (FOR) is now trading at around $0.07665, as of Sept. 24, 2021. Its 24-hour trading volume on exchanges is around $40,525,491.
ForTube (FOR) Price Prediction and Future Outlook
Despite a relatively bearish market for the past few weeks, the FOR token has experienced a major gain in price. It has experienced a growth of 14.08% recently.
At present, Bitcoin (BTC) was rejected by the $44,000 resistance level multiple times and is currently trending around $43,500. If BTC manages to break the $44,000 level, the cryptocurrency market may experience a rise, and the FOR token which is already moving in an upward trend can drop another zero.
Another important point for long-term FOR token holders is that the DeFi market currently stands at 88,570 U.S. million dollars in total value locked (TVL). Since the vision of ForTube protocol is to facilitate DeFi projects and crypto financial businesses, a big boom in the price of FOR tokens can be expected, only if the infrastructure of ForTube can keep up with the ever-growing world of Decentralized Finance.
The ForTube (FOR) protocol is developed on the Ethereum platform which is scheduled to receive a major upgrade known as Ethereum 2.0 (ETH2). ETH2 will have a variety of interconnected upgrades that will make the whole Ethereum platform more secure, scalable, and environmentally sustainable. Projects that will be hosted on the Ethereum platform will experience faster transactions speeds at a much lower cost. This upgrade may also have a significant impact on the price of the projects that are hosted on this platform, which means that the FOR token may ultimately experience a big jump in price.
The FOR token touched its all-time high of $0.1699 on Apr 12, 2021. This implies that the token’s next target should be $1, however, considering the speed at which the FOR token is adding support for multiple tokens in addition to the ones that are already present like USDT, USDC, BUSD, ETH, BNB, and several others, it is probable that $10 is a realistic target for the FOR token by end of 2022.
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