Tokyo Finance is a new generation DeFi platform leveraging multiple interconnected protocols to bootstrap new synthetic asset markets and liquidity incentives on Binance Smart Chain. TOKYO is designed to have an emission curve and reward programs that ensures superior incentivization for TOKYO governance/holders, liquidity providers and users. TOKYO liquidity providers can use their pooled liquidity in TokyoSwap to mint new synthetic assets and enter leveraged positions.
Tokyoswap and Tokyo Synthetics are integrated, 0.1% of the collected fees on the exchange and synthetic assets are used to buy the TOKYO token and deposit it to the TOKYO Treasury, so as the exchange's volume increases, buy pressure on TOKYO increases as well as the responsibility of TOKYO holders to allocate tokens in a productive manner through the DAO's governance.
Synthetic assets are an important part of a decentralized ecosystem. They allow decentralized infrastructure to offer assets that track the price of any system. Right now existing protocols for synthetics (like Synthetix and UMA) require you to put your assets into a base token in order to collateralise the creation of your synthetic asset, taking on risk and losing your exposure to the underlying assets of your choice. Instead of this, we are allowing users to use their LP tokens to create synthetic assets, so they will still have their exposure to the underlying assets and the LP fees from that trade pair. TOKYO will increase that dramatically by making it practical to partake in synthetic asset creation.
TOKYO holders have the power to shape the future of the protocol. A dedicated Snapshot will be live shortly after the protocol launch to enable community control. As previously stated, the governance treasury receives the TOKYO tokens paid back by depositors when they withdraw their deposits. These TOKYO will be used by whatever the TOKYO holders decide on. The governance process works by having users vote with their TOKYO tokens on various proposals ranging from protocol parameters to smart ways of using the capital assets stored in the treasury for creating new incentives, capitalization, and at the end growth.