Protocol-Owned Liquidity

FartStrategy owns the FSTR/SOL liquidity pool on Meteora, which is locked and earns fees in FSTR and SOL. The SOL is used to buy more Fartcoin, but until management decides to conduct at-the-money offerings to buy more Fartcoin, the protocol can earn additional fees through deploying more Protocol-Owned Liquidity.

The new liquidity exists in multiple pools on Raydium and Orca, in the FSTR/Fartcoin pair. This takes some of FartStrategy's Fartcoin and pairs it with the FSTR that is earned from the locked FSTR/SOL liquidity pool, in order to connect the price of Fartcoin and FSTR more tightly.

Additionally, this liquidity encourages traders who use Jupiter Aggregator (or arbitrage bots!) to route their buys and sells of Fartcoin through two FartStrategy-owned pools: The FSTR/SOL pool, and the FSTR/Fartcoin pool. Because of Fartcoin's high volatility and volume, the protocol captures relatively high fees that can go to buy more Fartcoin.

This sustainable yield allows the protocol to continue to accrue value for token-holders during periods where the Fartcoin price is range-bound and choppy. It also means that when Fartcoin does rise in price, the DAO will benefit even more.

During periods where it seems like the primary FartStrategy plan is not an exciting mechanism because the treasury asset is not explosively rising, it is important to realize that the value of the Vault can be put to work. FartStrategy earns real, sustainable yield on Fartcoin during periods of chop, and gains reflexive upside during breakouts.

That is just one of the many reasons why FartStrategy is such a compelling protocol.