fTokens are the native share token of Friktion's Volt program.
  • fTokens continuously accrue the returns from a Volt and compound returns to the token holder.
  • fTokens are claimable from a deposit into any volt after the volt in which you deposited ends.
  • fTokens are transferrable, redeemable for the deposit token of a volt (e.g SOL for SOL covered calls), and tradable on a Serum market or AMM. They're just a plain old SPL token!
  • fToken addresses can be found in the Friktion snapshot!
For help interacting with fTokens, check out our developer resources

How Many fTokens Will I Receive for My Deposit?

  1. 1.
    The SOL covered call volt starts with 100 SOL deposited. There are 105 fcSol fTokens in circulation
  2. 2.
    You deposit 1 SOL
  3. 3.
    The current epoch ends. No returns so deposit values are the same.
  4. 4.
    The next epoch starts. 1/100 * 105 = 1.05 fcSol tokens are now claimable

How Many Underlying Tokens Will I Receive for My Withdrawal?

  1. 1.
    The SOL covered call volt starts with 100 SOL deposited. There are 105 fcSol fTokens in circulation
  2. 2.
    You burn 10 fcSol fTokens.
  3. 3.
    The current epoch ends. Volt returned 1%, so SOL deposits are now 101.
  4. 4.
    The next epoch starts. Your fcSol tokens were redeemed for 1/105 * 101 SOL each. Thus 10/105 * 101 = 9.61904761905 SOL is now claimable

Why fTokens: composability + security

The way Friktion handles deposits and withdrawals is complex. The complexity exists for a reason though, because Friktion is carefully engineered to fit certain constraints:
  • Composability: Friktion Volt tokens (fcSOL, fcBTC, fpBTC, etc) are similar to LP tokens in that they represent a pro-rata ownership of the pool. These share tokens are technically a "rebasing token", meaning it will change in value relative to the deposit token. So if you have 10 fcSOL today, you will still have 10 fcSOL a year later, but in that time 1 fcSOL might be worth 20 SOL.
    • This maximizes the ability for protocols to compose on Friktion because these fTokens could be used in AMMs and as collateral in lending platforms. You can also participate in liquidity mining yield farms to give users extra yields on top. This composability is the reason there is a "Mint Shares" functionality in the app!
    • An example: currently you can stake fcmSOL (by depositing mSOL, a liquid staking derivative, into Friktion Volt#01)
  • Security: The pending deposit and withdrawal is necessary because entering/exiting mid epoch could be abused to unfairly dilute yields of other participants or even worse drain balances of other participants. The design of Friktion prioritizes safety by having these pending states.