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Last updated: Nov 23, 2022
ForTube, formerly known as the Force Protocol, is a decentralized financial services platform that provides lending services and customizable financial products, with various interest models and flexible earnings methods, it brings maximum aggregation earnings to users and ensures maximum liquidity while improving capital utilization.
The ForTube platform’s primary services are ForTube Bond and ForTube Bank.
ForTube bank is the lending protocol, allowing users to earn interest by simply depositing assets into liquidity pools and borrowing assets upon providing collateral.
After depositing the crypto assets into liquidity pools, users will be granted with interest-bearing tokens, which will accumulate deposits plus the generated interest over a certain period. The deposited asset will first repay the loan (if any) of that asset, and the net assets will begin accruing interest.
ForTube applies Asset Pools Segregation, which divides the asset markets into two sections: the Main Market and the Innovation Market. The Main Market is for mainstream collateral assets, such as ETH, BTC, and stablecoins, meanwhile the Innovation Market includes new assets, potentially bearing some risks. The reason for such segregation is to make sure that the risk is divided into two pools rather than one.
ForTube Bank’s interest rate model is driven by an automated algorithm, where the interest rate is adjusted according to changes occurring between supply and demand, in order to adjust such factors as the total size of loans and the amount of fund supply. If the lending amount in the loan pool is low, the loan interest rate gradually increases to encourage borrowers to borrow from the loan pool. When the lending amount is high or even close to saturation, the loan interest rate increases quickly in order to raise the deposit interest rate and encourage lenders to deposit more funds to the loan pool.
ForTube accepts various assets as collateral to borrow other assets. ForTube does not apply the simple pledge rate and liquidation line of a single asset, instead, it uses a concept called the health index. The health index is a function of total collateral assets and total borrowing funds, which is used to evaluate whether the account status is undercollateralized. The higher the index value, the lower the probability of liquidation, and the higher the security status of funds. When the borrower's outstanding loan exceeds the limited ratio of its collateral, the system will seize the user's assets and start the liquidation process. The liquidation of the collateral starts in case if the underlying collateral is subject to a significant depreciation or the issuer fails to pay on time. The ForTube platform currently uses a discounted liquidation model meaning the collateral can be traded at discounted prices.
ForTube Bond provides financing services with fixed rates for users holding crypto assets; it provides a complete set of solutions for crypto digital bonds, including credit rating, bond issuance, bond liquidation, bond trading, etc. ForTube Bond is available on Ethereum and Binance Smart Chain.
The issuance of crypto digital bonds adopts a registration mechanism and does not require any centralized agency to review or approve. The ForTube platform performs a formalized and automatic verification of the information submitted by the bond issuer. ForTube has adopted a flexible bond credit rating where assets are evaluated by three dimensions and risks are divided into five levels from low to high, that is E (very high risk), D (high risk), C (medium risk), B (low risk), and A (very low risk). An asset with a risk rating of E will not be connected to the protocol.
ForTube’s bond credit rating consists of community rating and professional rating. The community rating is performed by the holders of the protocol native token FOR, while the professional ratings are performed by professional credit rating agencies. To do so, a potential rater has to submit an application to the ForTube team and provide documents proving their professional expertise. The final rating results are identified by the community rating and the professional rating jointly, with 60% and 40% of weights respectively. After the bond credit rating is completed, the digital bonds can be issued.
After the bond credit rating is completed, digital bonds which represent investment proof are issued in ERC-20 token format referred to as BondTokens. They represent debt obligation (the holder is the creditor) and are not divisible. Each BondToken has a value of $100.
Bond liquidation can happen in two cases: if the pledged amount loses value or if the issuer fails to repay within the agreed timeline. The debtor is reminded when the collateral’s value falls to 80% and when it falls under 70% the liquidation is triggered.
The liquidated amount will be used to cover the debts and pay for rating fees, to be paid to participants in bond credit ratings.
As the first step to use the Fortube app, it is required to connect the wallet first. Fortube wallet system is currently compatible with such wallets as Metamask, Trezor, Trust, Ledger, Atomic, which can be connected to the Fortube app through Wallet Connect.
For lending, users need to click ’Earn’ on the left navigation bar and select ’Deposit’. Clients of the platform must choose the asset, the amount to be deposited, and then confirm the transaction in the pop-up window, where the deposit amount, value, and health index will be displayed. After successfully depositing assets, the deposit details can be viewed by clicking ’Dashboard-Deposit Account’ on the left navigation bar.
For borrowing, the user has to click ’Borrow’ in the left navigation bar and select ’Variable rate’. In the search bar on the right, the asset which is to be borrowed has to be chosen. On the Variable rate page, the estimated maximum borrowable amount can be viewed. The user has to enter the number of assets to be borrowed and confirm the transaction in the pop-up window with the amount, the value of the borrowed asset, debt status, and health index. After successfully borrowing assets, the detailed debt information can be viewed by clicking on the left navigation bar Dashboard-Borrowing account.
For debt repayment, click ’Dashboard’ on the left navigation bar, select the ‘Borrowing account’, find the appropriate asset in ’Debt’ history, and click ’Repay’. On the Debt history page, you can view the specific debt amount and accumulated interest information. After clicking the ‘Repay’ button, it is necessary to fill in the amount of assets to be repaid. Once done, users can view the change in the health index after repayment. After that, it is necessary to confirm the operation. After repaying the assets, users can check the debt status and accumulated interest after repayment in Debt history.
For withdrawing, it is required to click ‘Dashboard’ in the left navigation bar, select deposit account, find the asset of choice in Deposit details and click ‘Withdraw’. Then users need to enter the number of assets to be withdrawn and confirm in the pop-up window. After withdrawing the assets, users can view the current assets and accumulated income information in the ‘Dashboard-Deposit Account’.
The FOR token is the ForTube governance token. The maximum supply of FOR is 1,000,000,000 and the total supply is 1,000,000,000. Users who hold FOR can participate in the ForTube platform governance voting system, allowing the community to propose and vote for changes to the ForTube Bank and Bond services. 85% of the tokens are used for community programs which will further be divided into three parts: 30% for community ecosystem construction, 25% for The Force Protocol Foundation, and the remaining 30% for the investors and community donations. The remaining 15% will be reserved for rewarding founders and the development team and incentivizing new members.
ForTube has recently launched a new governance structure, where the new FDAO token (only available on Ethereum) serves as the value certificate and proof of privileges for the ForTube platform.
The governance system of ForTube was created to mitigate and balance profit distribution, risk-taking, and governance decision-making issues on the protocol.
As mentioned above, ForTube assets are divided into two categories: the Main Market and the Innovation Market. Each lending pool will be operated and managed by the corresponding fDAO, and these fDAOs will be managed by some FOR holders and cover part of the risks.
FOR holders can stake their tokens to a certain fDAO according to their own risk preferences and obtain the corresponding fDAO tokens. fDAO governs its lending pool and covers part of the risks.
fDAO tokens will be issued on the bonding curve, with FOR as a reserve asset. The bonding curve contract is a special type of smart contract that issues fDAO tokens through a buy and sell function. To purchase fDAO tokens, the buyer sends FOR to the Buy function, which calculates the average price of FOR for fDAO tokens. The Sell function works in the opposite way. The contract will calculate the current average selling price.
60% of all lending pool income will be distributed to each fDAO token holder to incentivize them to participate in governance and cover risks. 20% of income will be distributed to the system reserve, which is the ultimate measure for the platform to cover risks. 10% will go to the Research & Development team. 10% - to the marketing team to incentivize platform users to use and promote ForTube products.
The ForTube platform envisages three types of risk control management strategies – financial security, smart contract security, and oracle security.
The Fortube financial security consists of individual-level and system-level security, which ensures that users are protected from financial risks which could occur at the contract and backend levels. Protection from unauthorized use of contract management accounts, abnormal user openings, sudden and significant decline in the health of positions, are some of the examples of the financial security provided by the ForTube protocol.
The smart contract security of the ForTube platform consists of experienced developers, an audit, and monitoring system, and multiple audit mechanisms. To make sure that smart contracts are protected, the ForTube has employed developers who make sure that security vulnerability in the smart contract is resolved. The audit and monitoring system makes sure that the smart contract is properly accounted for, always highly available, and operates throughout the day without any delays.
The ForTube platform utilizes an oracle system since the presence of numerous currencies makes it important to secure the platform at all times. ForTube platform frequently upgrades and optimizes the oracle system to ensure the accuracy of price feeds, improving the decentralization, security, and scalability of the entire platform.
Jeffrey is the CEO of ForTube, who claims to have previous experience in China UnionPay as a senior manager, where he focused on R&D of inter-bank transfer clearing system and investment. After that, Jeffrey was focusing on investment consulting blockchain and the digital economy. Jeffrey claims to have a deep experience in investment and operation in the blockchain and fintech industry.
Xu Chao is the co-founder of ForTube. Xu Chao claims that he started his crypto journey in 2017 as an individual investor, and in 2018 decided to devote himself to the cryptocurrency industry.
Fortube has recently achieved a strategic partnership with IoTeX with the aim of close cooperation in various fields such as DeFi ecosystem construction, cross-chain transactions, market expansion, etc.
According to the protocol’s roadmap, in Q2 2022, it is planned to launch ForTube version 4, optimize the interest rate model and pledge rate, and integrate more fixed-rate products. In Q3, it is planned to release ForTube version 5, improve the usability in combination with Web 3.0, and connect NFT and social attributes to DeFi. In Q4, the team plans to improve the cross-chain function of the governance token, optimize the value integration and circulation of products in different versions, optimize Layer-2 services and gas fees, and further enhance the DAO governance model.
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