Use-Case Categories
The Fraction Protocol includes various sale types within the "Sale" and "Sale with Buyback Option" categories. A platform can be deployed with only one of the categories listed below. Each category may contain several subcategories. For instance, a platform designed for the "Sale" category can only support the "Staking Integration" and "Basket" sale types. Multiple combinations of sale types are possible.
Sale Category
The sale use-case refers to a platform that can run the following sale types:
- TGE/ICO: A sale type and fundraising mechanism where a project sells its tokens to investors in exchange for capital, typically before the platform or product is fully launched.
- Staking Integration: This sale type follows the same mechanism as TGE/ICO, but with the added option for token buyers to stake their newly acquired tokens in a pool in exchange for rewards.
- Basket: Represents a sale where a pool of different assets is fractionalized, and those fractions are sold to buyers.
Sale With Buyback Category
The sale with buyback category refers to platforms where an issuer (borrower) can secure funds from other users (lenders). Issuer is obligated to repay the borrowed amount along with interest, enabling lenders to receive their principal investment plus additional returns:
- RWA Collateral: A real-world asset, such as real estate or commodities, is used as collateral for newly issued tokens that are purchased by buyers. This ensures the token’s value is backed by tangible, stable assets.
- Volatile Collateral: A volatile digital asset, like Bitcoin or Ethereum, serves as collateral for issued tokens. Due to market fluctuations, these assets carry higher risk and potential for value change.
- Stablecoins: A non-volatile digital asset, such as USDT or USDC, is used as collateral for issued tokens. These assets maintain a stable value, offering more predictable backing compared to volatile cryptocurrencies.