PTF is a DAO token which governs the treasury that covers PowerTrade traders in the unlikely event of a black swan, where margin collateral is not sufficient to cover open margin positions.
This DAO is an alternative to exchange insurance funds but is funded similarly: fees from liquidation and trading on PowerTrade are deposited into the DAO treasury. Traders on PowerTrade who do not manage their positions properly will face a liquidation, which comes with an extra fee for putting the system at risk.
PowerTrade will deposit all liquidation fees and 25% of trading fees to the DAO treasury.
On a technical level the PTF DAO is a fork of the Compound DAO, which gives token holders a lot of flexibility when it comes to voting on different pieces of the smart contract infrastructure it manages.
Benefits for token holders
- Governance rights of the DAO
- Staking the token to receive reduced trading fees and staking rewards