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Time Frames (TF) and Futures

FRC758/FRC759 are token formats developed by Fusion that showcase Fusion's unique time functionality and are also EVM compatible, making them useful in cross-chain handling. Currently, FRC759 is the standard and evolved from FRC758 in advance of the cross-chain aggregator to better handle cross-chain interactions. Like with mainnet FSN and Fusion assets, FRC758/FRC759s can utilize Fusion Time-locks. But, for FRC-type assets, timeframes (TF) is the term in use. A difference between Fusion assets and FRC758/FRC759s is that FRC759s can have market availability due to being able to utilize UniSwap v2 AMM, where any FRC token can be paired with any other FRC token. After the launch of the FRC759 format, Chainge only supports FRC759 for regular spot assets, but they still utilize FRC758 for Option contracts. The has no limits on token formats, so FRC759, FRC758, and FRC20 can all be used.


So, what are time frames, and what's different about them compared to time slices? Effectively they're quite similar technically (the main technical difference is that TL operates on a protocol level, while TF operates on a contract level, but they can perform the same functions). They're similar enough that the main difference is not the technical aspect but instead how it is used in Chainge Finance. Currently, the shorter (time-lent) ends of Time Frames are not really used; it's only the longer (time-limited/infinity) ends that get used. What happens when someone uses "earn" in Chainge is that the time-lent ends are burnt, assuring Chainge that the assets will stay on Fusion for the duration of the year, and they pay the user for doing this. But why? Essentially after the short slices are burnt, the asset will only be usable in Chainge, which gives Chainge an edge to extract value from it, and they believe they can extract greater value than the upfront reward they pay out. For FSN, the reward they give out is based on their ability to stake FSN. For many other assets, like BTC and USDT, the rewards are based on their ability to arbitrage those assets. How that may work will be explained later. First, let's look at what users can do with TF assets, in Chainge also known as Futures.

Users have many different options for what they can do with TF assets/Futures to win even more rewards. Firstly, they can use them to write options. Secondly, they can provide liquidity for them against the asset itself, in the form of single-sided staking pools, where the TF version is likely to be priced lower than the main asset. Thirdly, they can liquidate the TF assets through the Futures pool. The Futures pools are generally well-rewarded by Chainge to assure TF holders an ability to liquidate/exit at any time if they so desire.

Futures AMM pools generally look something like this: Full USDT(FRC759)/ USDT(FRC759) TF (20240101 to infinity) or Full BTC(FRC759)/ BTC(FRC759) TF (20240102 to infinity). This means that free exchange can be made between full assets and their infinity ends (futures). But the use case of this hinges on the ability for Chainge to extract interest from the assets; otherwise, Chainge is just handing out free money for no reason. In the case of FSN, they can get that interest from staking, which is easy to calculate. The generous rewards are simply a necessary sacrifice needed to get the markets started, and Chainge hopes to extract even greater rewards from them in the future. Despite the fact that it is not as reliable to earn interest on BTC, the presence of futures in DEXs and options derived from futures in DEXs attract a high level of trading activity in a setting that Chainge is familiar with. This enables them to perform effective arbitrage on all supported assets, including spot, futures, and options. This is particularly effective whenever someone makes large liquidations or entries. Overall, it is worth it for Chainge to pay for TF-ing assets because regardless of who ends up with those assets, they are guaranteed to remain in Chainge markets for the remainder of the year.

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