$FORM - The Governance Token

Risk Parity Protocol | The Lite Paper V1.0

One of the most revolutionary features of DeFi is its open and democratized nature. This isn’t just limited to access: many DeFi projects are actively involving their users in governance decisions, recognizing the value of the wisdom of the crowd in solving complex problems in a decentralized space. Formation Fi is no different, which is why the Risk Parity protocol is overseen by $FORM, a token issued by the Risk Parity Protocol to liquidity providers and depositors. $FORM is a triple-utility token with the following functions:

  • Governance Voting. $FORM holders vote on proposals for the FORM operational treasury.

  • Staking + Liquidity Mining. $FORM will be awarded to a user who deposits or stakes underlying digital assets to generate Alpha, Beta, Gamma and Parity or swap among the index coins.

  • Dark Pools: $FORM will confer access to investment liquidity pools which harness the wisdom of the crowd to incubate and fund the most promising new DeFi projects.

Risk Parity Protocol will implement governance on key protocol parameters of specific Risk Parity products as well as how the portfolio of Risk Parity Protocol products interoperate. Formation Fi is built on the concept of progressive decentralization, a stepwise approach towards building a DAO where decision making powers are gradually transferred to $FORM token holders over time. We’ll seek community feedback before making major decisions, and share the rationale behind decisions through our official channels, but there won’t be formal governance until later in 2021.