Fulcrom Finance is a decentralized perpetual exchange built on Cronos for pro traders. In September 2023, Fulcrom Finance announced its expansion multichain to ZKSync Era. ^{[1] [2] [5]}

Overview

Fulcrom's goal is to revolutionize the way traders access leverage trading, allowing users to trade leveraged positions for up to 25X with minimal fees while ensuring all trades and collateral are transparently stored on the blockchain. ^[3]

"What sets Fulcrom apart is our commitment to decentralisation and transparency. Unlike many centralised exchanges that offer perpetual contracts, our platform brings these innovative derivatives on-chain, offering a secure and reliable way for traders to access them on Cronos." - the team said ^[3]

On September 22, 2023, Fulcrom Finance went multichain and moved from Cronos to ZKSync Era.

"Our choice to collaborate with zkSync Era is grounded in a shared vision of leveraging zero-knowledge technology to enhance scalability and speed, thereby reshaping the derivatives landscape to offer unprecedented opportunities" - The Fulcrom team on why they migrated ^[5]

Perpetual Contracts

Perpetual contracts are derivative products similar to futures contracts but have no expiry or settlement. These contracts offer several benefits to traders:

• Capital efficiency through leverage: With a perpetual contract, traders can put down only part of the notional margin, rather than having to fund the full cost of the trade. This opens up capital to be allocated elsewhere or perform more trades.
• No requirement to hold underlying assets: Perpetual contracts are derivatives, meaning that traders do not need to own the underlying assets (such as ETH) to trade them. As long as there is sufficient collateral and a price feed, a perpetual contract can be traded for almost any token.- No physical settlement: Trades can be held with leverage in perpetuity as long as the trader has sufficient collateral to pay for ongoing fees. There is no physical settlement of the underlying, as there is no expiry. This makes trading perpetual easier. ^[3]

Utility Tokens

Fulcrom is powered by two primary utility tokens: $FUL and $FLP.

$FUL

is the native governance token of Fulcrom that can be staked within the ecosystem to earn rewards and revenue. It also has future utility on the trading platform. ^[3]

By locking FUL, users can earn a range of rewards, including:

• Escrowed FUL (esFUL): This is a time-locked version of FUL that can be converted to actual FUL over one year. esFUL rewards users with an equal amount of esFUL and revenue as locking FUL. esFUL rewards generated by staking $FLP at launch will be given at a fixed rate per second. ^[4]
• Boost Points: This rewards system incentivizes long-term token holding. Every second, users receive Boost Points at a fixed rate of 100% APR. Boost Points can be locked up and earn the same amount of protocol revenue as FUL. ^[4]

$FLP

This is the native liquidity token of Fulcrom. It is an index token made up of blue chip assets like $BTC, $ETH, and stables. Its value is partially derived from the price of its underlying assets and acts as the counterparty for all trades on Fulcrom. It also earns a larger share of protocol revenue compared to $FUL. ^[3]

FLP holders are also entitled to 60% of the trading fees paid by traders on the platform, making them the largest beneficiaries of Fulcrom’s transaction volume. This yield will be given back in CRO.