Use Case Categories
The Fraction Protocol includes various campaign types within the "Campaign" and "Campaign with Buyback Option" categories described below. 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 "Campaign" category can only support the "Staking Integration" and "Basket" campaign types. Multiple combinations of campaign types are possible.
Campaign Category
A platform can support the creation of the following campaign types:
- TGE/ICO: A campaign 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 campaign 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 campaign where a pool of different assets is fractionalized, and those fractions are sold to buyers.
Campaign With Buyback Category
Fraction platforms that include facets from the buyback category allow creating campaigns 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.