ForTube - Analysis of a Promising DeFi Protocol
In today's centralized financial system, the same problems recur again and again.
High administration and transaction fees, long waiting times for different services, dependencies and much more. The DeFi sector now wants to fight against this! Central institutions are to be replaced by blockchains and decentralized services. In the future, people should become more and more their "own bank" to be able to handle their finances freely and independently. This will result in a multitude of projects and protocols that can offer this type of decentralized applications and services. In today's analysis we would like to present one of the most promising protocols to the DEFI WORLD community.
The Force Protocol, in form of ForTube, is a protocol which offers DeFi services on blockchain basis. This protocol wants to offer these services as transparent, secure and user-friendly as possible.
It is important to know that the whole project is divided into three different protocols, which fulfill different tasks: ForTube Bond, ForTube Bank and QIAN.
In the following, these three protocols will be presented. We will also look at their technical components, which on the one hand enable a secure and user-friendly development, and on the other hand enable the general existence of these protocols.
The idea behind ForTube Bond is to decentralize bond trading and integrate it into the Crypto space. This will include the usual aspects of bond trading in the protocol, such as credit checks, bond issuance, bond liquidation, bond trading, etc. Nevertheless, Crypto Bond will be a new type of bond issued and accounted for in the form of tokens. It is also another product that guarantees fixed returns.
Bonds are rated with a risk table from A1 (very safe; most likely capable of paying interest and principal) to D (very risky; most likely not capable of paying interest and principal on time).
This is a bank in decentralized form, which, as with all DeFi protocols, has the special characteristic of not requiring intermediaries or institutions. The protocol offers investors the opportunity to lend their financial assets to borrowers. Those borrowers must pay interest on the borrowed assets, which the investor then earns. In this way investors can generate a passive income.
QIAN is a stablecoin system that allows users to easily access financial services. Holders of assets in crypto-currencies can lock those in QIAN's Smart Contract, whereas they receive an amount of QIAN stablecoins corresponding to the amount of assets included. Best of all, there is no need to pay interest on the amount of the borrowed stablecoins, making access to liquid capital quick, secure, easy and inexpensive in the near future.
In order to enable the function of the just mentioned protocols at all, and/or to guarantee their security, there are technical components which are to be described in the following:
Fundamental Component (APEC = Assets Protected Elastic Contracts)
APEC is the core of the on-chain structure as it ensures both the decentralization of the platform and the security of the assets. At the same time, it makes adjustments and changes to contract processing.
Extended Component (BEAMS = Blockchain Enquiring, Adulting & Messaging System)
Smart Contracts must be constantly monitored, as these and the blockchain itself are completely isolated from the real world. This means that problems and attacks in Smart Contracts do not directly affect the real world, which can lead to them being noticed too late or not at all. For this reason, BEAMS are used to connect the on-chain world with the off-chain world, facilitating interaction and communication between the two worlds.
The following financial components serve to secure finances in an emergency situation. They are designed to protect the platform from attacks and invasions and to minimize a possible loss of assets.
GEL (Global Emergency Lockdown)
GEL ensures that if a problem arises with a smart contract, all incoming and outgoing transaction interfaces are blocked to protect the assets in the contracts.
CALM (Cooperative Automatic Lockdown Mechanism)
The monitoring function of the Smart Contracts is performed by CALM. Both, the Smart Contracts and the assets in them are constantly monitored by CALM; more precisely every five seconds. If a potential risk arises, GEL is triggered immediately and automatically.
MAK (Multisig Admin Keys)
If the user's keys are stolen, they can recover their Admin Key through the other remaining Admin Keys. By this way, attackers do not have the possibility to lock high level permissions when obtaining a key.
The Force Protocol has big expansion plans. In the future, these tokenized protocols will be transferred to other blockchain systems, such as ETH 2.0, Polkadot and Binance.
With ETH 2.0 the protocol would interact with the probably most elementary blockchain, with Binance one of the most famous and with Polkadot one of the most promising blockchains. The interaction across different blockchains is mandatory for the whole crypto sector.
The FOR token is to be understood as a governance token, because the token holders receive co-determination rights on ForTube and QIAN. Furthermore, it is important to know that the supply of FOR tokens is limited to one billion tokens; thus, no further tokens are issued artificially. The amount of FOR tokens will be divided as follows: 30% will go to donations for strategic investors and for the community, 30% will be spent on the expansion of the community ecosystem, 25% will go to the Force Protocol Foundation and the remaining 15% will go to the Force Protocol development team.
The distribution is summarized in the graph below:
As of August 27, 2020, the Force Protocol has a trading volume of $3.3 million and a market capitalization of $18.4 million. The price per token at that time was $0.074, with an all-time high of $0.086 and an all-time low of $0.01. The trading with this token is possible on Uniswap.
ForTube is a very solid and promising DeFi protocol that could fundamentally change the central financial system, if not make it completely obsolete. The technical components fight against everyday technical problems in the crypto space, making the entire protocol growable and secure. QIAN is a very interesting protocol because it allows people with very few assets to access liquid capital quickly and easily. This would be unthinkable at a bank today! It should also be said that the Force Protocol can offer not just a single use case, but three. It is also noteworthy that the Force Protocol does not try to compete with other blockchains, but tries to link them with itself, which also speaks for an enormous growth potential. The transparent way of acting of the team and the problem the Force Protocol wants to tackle makes it a promising project, which DeFi investors should definitely keep an eye on!