Batasm Protocol is a fork of the well-known DeFi platform Fantasm.finance. Its goal is to create and broaden the use of synthetic tokens across several L1 ecosystems. BSM serves as the protocol’s utility token (on Fantom Opera) and distributes 100% of the protocol’s generated fee revenue to its holders. When a user mints BFTM, the protocol takes in FTM as collateral; the BSM token used during that minting process is then burned. Upon redemption of BFTM, the protocol returns FTM to the user and issues the amount of BSM needed for the redemption.

The way FTM and BSM are applied in the minting and redeeming processes is set by the Collateral Ratio. The details, including examples, are covered in the following sections of our documentation. Each time synthetic assets such as BFTM are minted and redeemed on Batasm, the protocol charges a 0.50% fee for minting and a 0.50% fee for redemption. These fees are paid out to users as FTM and BSM dividends, provided they lock their BSM within the platform.