Question 1

What is CRF?

Accepted Answer

CRF is the utility and governance token of Crafting Finance. According to the project's whitepaper, Crafting Finance proposes to generate synthetic assets pegged to the prices of external assets through overcollateralization, allowing users to trade or exchange those synthetic assets within the protocol; CRF is one of the tokens used for governance and that may serve as collateral in this mechanism. Synthetic assets provide on-chain exposure to a reference price. They are not equivalent to directly holding the referenced asset and do not automatically include shareholder, redemption, or delivery rights in that asset. The project's whitepaper describes a protocol design; it does not itself prove that a particular product module is currently still operating.

Question 2

What is CRF used for?

Accepted Answer

In the design described in the whitepaper, CRF has two connected roles: participation in governance and potential use as collateral when generating synthetic assets. Governance voting may determine which assets are acceptable as collateral, their corresponding collateral ratios, and which synthetic assets the system supports; these parameters determine the size of positions users can generate and their risk boundaries. Holding CRF does not mean holding shares in a company, and does not inherently grant rights to dividends, profit distributions, or redemption at face value. Whether governance rights can be exercised and the specific governance process should be determined by the protocol rules available at the relevant time.

Question 3

How is a position affected when CRF is used as collateral?

Accepted Answer

Under this design, a user first deposits collateral accepted by the protocol and then generates synthetic assets within applicable collateral-ratio limits; the ratio between collateral value and generated debt must remain above the level required by the rules. CRF is listed as one eligible collateral asset, so price changes in CRF directly affect whether positions established with it continue to meet collateral requirements. If the price of CRF or other collateral falls, the collateral ratio declines. Users may need to add collateral, repay part of the generated synthetic assets to reduce debt, or face liquidation once the rules are triggered; therefore, “eligible as collateral” does not mean users can borrow unconditionally or without price risk.

Question 4

What is the relationship between CRF and the protocol's fee and interest pools?

Accepted Answer

The whitepaper places fees generated by trading and interest generated by synthetic-asset debt into corresponding pools, and links reward eligibility to collateral status. In other words, participants do not automatically receive fees or interest merely by holding CRF; their collateralized positions must satisfy the collateral conditions specified by the protocol. Fee income, interest income, and reward eligibility are distinct components: the first two are revenue sources in the system design, while conditions such as the collateral ratio determine whether a participant may take part in distributions under the rules. The whitepaper does not establish, in the materials verified in this round, the current actual distribution scale or yield rate, so token-holder returns cannot be inferred from it.

Question 5

Why are oracles important to the Crafting Finance mechanism?

Accepted Answer

Synthetic assets and collateralized positions need external prices to calculate reference-asset prices, collateral values, and collateral ratios, so this design relies on oracles to provide price data to on-chain contracts. Price inputs affect the amount of synthetic assets users can generate and whether a position needs additional collateral or may be liquidated. If oracle prices are delayed, abnormal, or manipulated, the debt and collateral conditions calculated by the system may also diverge from market conditions; sharp collateral volatility and contract risk can also affect positions. The oracle's role is to provide pricing inputs, not to eliminate these risks.

Question 6

What is the difference between CRF's supply, initial allocation, and circulating supply?

Accepted Answer

Project materials set CRF's maximum supply at 2 billion tokens. Under the initial arrangement disclosed in a 2021 announcement, liquidity incentives accounted for 40%, issuance and sales for 19%, with the remainder allocated to categories including ecosystem partners, the team, and advisors; different release schedules applied to each category. Maximum supply describes the total cap allowed by the rules, initial allocation describes how categories are assigned, and the release schedule determines when allocated tokens may become available for circulation. These three concepts cannot substitute for one another: a 2021 announcement alone cannot accurately establish today's circulating supply or the balances in each category that remain locked.

Crafting Finance (CRF) Price