🔵Fuego Overview
Last updated
Last updated
FUEGO is a decentralized, permissionless, and trustless on-chain protocol, built to pair a native deflationary token, FUEGO, with a diversified portfolio of Base Chain blue-chip tokens and other Base Chain deflationary tokens. FUEGO enables holders to capitalize on the relationship among decentralized liquidity pools, arbitraged volatility across exchanges, and constant deflationary pressure - all with the exponential growth of Base Chain. Over time, FUEGO will become Base Chain's most prominent pairing asset, building a new financing paradigm as Web3's most prominent and permanent Decentralized Autonomous Organization (DAO).
With the lack of a typical high emission token to back the Base ecosystem, FUEGO aims to become the natural ETH-like pairing token to represent all of Base Chain - but in a way that keeps tokenized assets and Base Chain from becoming inflationary (this will help prevent assets from losing buying power over time), but create exponential funding opportunities.
Deflationary Pressure = Scarcity for Abundance.
Unlike traditional deflationary tokens that rely on transaction taxes or reflections, FUEGO employs a unique burn mechanism that occurs on intervals. The project automatically burns one side (FUEGO) of the protocol owned liquidity (POL) while using the other side (ETH) as future collateral for further diversification and growth of a DAO based Treasury. This mechanism is built to steadily increase the baseline value of FUEGO with each burn. It also creates arbitrage opportunities for its many paired tokens, which creates value appreciation and real returns via trading fee revenue for all FUEGO holders. The diversified pools also help to ensure the protocol's long-term sustainability and safety.
Key Features:
Permanent Liquidity Lock: The Protocol Owned Liquidity (POL) is locked permanently by the contract, ensuring stability and trust.
Deflationary Mechanism: The FUEGO EmberCore Contract, autonomously burns one side of the LP on set intervals, IMMEDIATELY extending the interval as more tokens are burned. This mechanism helps create a sustainable deflationary model without the need for transaction taxes.
Aerodrome, Uniswap and Equalizer Pools: All FUEGO DAO Paired Pools will operate on V3 liquidity over time, partially utilizing Aperture Finance for active AI based pool management with recurring rebalancing strategies. Unlike VOID, the side pool assets are operated with a 4 of 5 multi-sig wallet for protocol safety, and a DAO based system of voting by the owners of FUEGO tokens. In FUEGO, the TOKEN HOLDERS WILL OWN the POL and the Paired Pools (Treasury) from day one, AND 90% of the Paired Pool fee revenue after the token has burned 50% of its circulation.
Diverse Token Pools: FUEGO will initially pair with six of Base Chain's highest volume coins (top six in terms of monthly volume to market cap) $cbBTC, $AERO, $DEGEN, $BRETT, $VIRTUAL, & LUNA. It will also pair with four of Base Chain's most prominent deflationary tokens - $fBOMB, $PEAS, $CIRCLE and $NULL (1 ETH of FUEGO to 1 ETH of paired token). The initial pairings will focus on sustainability while ongoing pairs will create wide-ranging impact across all of Base. A new token pair will occur at EVERY OTHER burn interval.
FUEGO will also pair with a special deflationary project with Integer Protocol's $WINT (Wrapped Integer) over 12 months in return for 10 ETH from the Integer Team toward initial Paired Pool liquidity in the FUEGO Treasury. The Integer "Prime 509" Treasury will have several opportunities for FUEGO holders and outside holders to take ownership beginning in 2025.
DAO Ownership Structure and Future Real Yield - The primary LP and the Pairing Pools created from the EmberCore Contract's deflation are ALL owned 100% by the FUEGO token holders. As the token becomes more scarce, the value of the token increases its base price as the Pairing Pools gradually grow. Once the token has burned 50% of its supply, the pool fee revenue from the side pools will begin paying all FUEGO token holders a real yield on a monthly basis. As the circulation is reduced, the underlyinging FUEGO floor value rises - and so will the yield.
Partner Pair Incentivized Whitelisting - Other Base protocols and NEW PROJECTS will be incentivized to pair with and own FUEGO tokens to increase arbitrage opportunities within V3 pools. This will strengthen the Base ecosystem and burn token supply in the process - creating evermore scarce reserves. (More details will come in 2025 on the Whitelisting Process and how real assets can begin to be tokenized and financed via deflationary liquidiity)
FUEGO Incentives Program: incentivizes other protocols to pair their tokens with FUEGO and will provide incentives to solidly type gauges on Base chain. The Team will use the FUEGO Incentive Fund based on community feedback to create a flywheel within the vePools of solidly based DEX platforms on Base.
FUEGO SAFE vs. VOID EXPLOIT - See more info in the VOID memorial Section...
