Arbitrum-based asset management protocol FactorDAO released its much-awaited staking service on Monday, days after ending a token sale on the decentralized exchange Camelot and facing controversy in the crypto community.
Last week, some on Crypto Twitter found that a part of Factor’s code was copied from other crypto projects.
“This project called FactorDAO $FCTR launching on CamelotDEX Is a blatant copy of SpoolFi,” popular Crypto Twitter trader Romano tweeted. “Imitation is flattery.”
A Factor developer acknowledged the disputed code in tweets on Monday, stating “5 bullet points on one page” led to widespread claims of the entire “docs being copied.”
Factor has since focused on releasing its staking and vaults services for users. However, the distrust among Crypto Twitter remains, as several tweets show.
Factor did not immediately respond to requests for comments.
Staking refers to locking up one’s tokens to participate and help maintain the security of that network’s blockchain, in turn for rewards.
Factor will take a percentage of the deposit, withdrawal, transaction, vault management, and performance fees and redistributes 50% to FCTR stakers, and 50% to its decentralized autonomous organization (DAO).
FCTR stakers will, therefore, earn yields on staking their tokens as liquidity to the platform, while the platform will use the increased liquidity to offer even more products to potential users.
Users who lock tokens for up to four years will receive the highest yields, the highest percentage of governance rights, and a higher amount of vested factor (veFCTR) – a token issued to users who lock their FCTR on the staking platform.
FCTR Sees Volatile Trading
Last week, Factor’s FCTR token launch on Camelot saw several Arbitrum users criticize the initial high market capitalization and overall issuance mechanism.
Factor ended up raising $7.5 million from 4,000 unique wallets. However, every participant got FCTR tokens at the same final price of 75 cents apiece due to the issuance mechanism on Camelot.
Even though the raise initially fixed a 10 cents price floor for each FCTR token, the final pool of money raised was equally distributed with the total number of issued tokens to determine the initial price of FCTR in the open market.
But these tokens were almost immediately dumped on the open market on Sunday, falling to as low as 44 cents, DEXTools data shows.
Buying pressure after the initial dump saw tokens regain the pre-sale price of 75 cents on Monday morning, but have since seen a gradual sell-off to just over 58 cents at writing time on Tuesday.
