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description: www.FuegoBase.io
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# Fuego Overview

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## What is Fuego?

FUEGO is a decentralized, community-governed DeFi protocol with a deflationary model designed to generate real yield. Acting as both a governance and utility token, FUEGO creates value by pairing with a diversified portfolio of high-quality Base Chain blue-chip tokens and tokenized assets, as selected by its DAO.

The protocol leverages deflationary mechanics, decentralized liquidity pools, and cross-exchange arbitrage to deliver income and capital appreciation for long-term holders. Over time, FUEGO aims to become a key deflationary pairing token across Base Chain DeFi, as well as a bridge to tokenize real-world assets (RWAs) onchain.

### Core Vision

FUEGO's Decentralized Treasury will evolve into a robust financial engine to support a deflationary ecosystem for both real and digital asset tokenization. Lacking a dominant protocol based token on Base Chain, FUEGO positions itself as the quasi-ETH pairing asset for the ecosystem.

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#### Key Features

* **Permanent Liquidity Lock**: POL is permanently locked by a smart contract, providing long-term stability and trust.
* **Scheduled Burn Mechanism**: The EmberCore Contract burns FUEGO from LPs at preset intervals. Each burn event increases the interval time, establishing a consistent deflationary cycle without the need for transaction taxes.
* **Diverse Liquidity Pools**: DAO-managed V3 pools are paired with high-volume, blue-chip tokens. The pools are governed via DAO voting, secured by a 3-of-5 multisig wallet. Token holders own the pools from launch and will begin receiving 90% of trading fee revenue on a stepped basis after 50% of FUEGO supply is burned.
* **Initial Pairings**: FUEGO is paired with blue chip high-volume Base Chain tokens including $cbBTC, $AERO, $DEGEN, $VIRTUAL, and tokenized assets like $uSOL and $uSUI - as well as deflationary tokens $fBOMB and $PEAS.
* **DAO Ownership and Real Yield**: All primary LPs and pairing pools are owned by FUEGO holders. As supply deflates, token scarcity increases the value. Once 50% of supply is burned, monthly yield from Treasury trading fees will be distributed to holders.
* **FUEGO Incentives Program**: Supports strategic pairings and integration with veNFT gauges on solidly-based DEXs. The community-driven Incentive Fund will help drive protocol adoption and ecosystem growth oveer time.

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In summary, FUEGO is designed to be a foundational, deflationary pairing asset on Base Chain that empowers token holders through DAO governance, protocol-owned liquidity, and sustainable real yield.

