> For the complete documentation index, see [llms.txt](https://thanasdefitools.gitbook.io/thanasdefitools-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://thanasdefitools.gitbook.io/thanasdefitools-docs/fact/what-is-fact.md).

# What Is the FAsset Collateral LST?

The **FAsset Collateral LST** is a share-based liquid staking token that aggregates WFLR across the collateral pools of approved FAsset agents on Flare. You deposit WFLR (or wrap-and-deposit native FLR in one transaction); you receive **FACT** (FAsset Collateral Token), an ERC-4626 share that represents your slice of the underlying pool.

It lives at [thanasdefitools.xyz/fasset-lst](https://thanasdefitools.xyz/fasset-lst) and runs on Flare mainnet only. FAsset infrastructure isn't deployed on Songbird or Coston2 in any usable form, so the LST is single-chain by design.

## Why it exists

FAsset agents on Flare back FXRP minting by posting WFLR collateral. That collateral earns two flavors of yield:

* **FAsset minting/redemption fees** paid to each agent's collateral pool, denominated in the FAsset itself (FXRP fees in FXRP, etc.).
* **FTSO delegation rewards** accruing on the WFLR held in pool — claimed by the agent and shared with the pool per pool-fee parameters.

To capture this yield as an individual WFLR holder, you'd need to:

1. Pick an agent.
2. Manually deposit into that agent's pool by calling `pool.enter()`.
3. Periodically claim FAsset fees, swap them to WFLR yourself.
4. Monitor the agent's collateral ratio — if it drops below the system minimum, your position becomes illiquid.
5. Repeat across multiple agents to diversify, and keep rebalancing as agent metrics change.

The LST does this automatically across **multiple eligible agents at once**, harvests fees on a permissionless cadence, swaps them through Enosys V3 with FTSO-anchored slippage protection, and returns yield to FACT holders proportionally as share-price growth — no token transfers, no claim transactions, no manual rebalancing.

## What FACT is

* **A standard ERC-4626 vault share token.** 18 decimals, full ERC-20 compatibility, indexable by every block explorer and wallet.
* **A claim on the LST's `totalAssets`.** Your FACT can be redeemed at any time for a proportional slice of the pool — capped only by the redemption queue mechanics described in [Staking and Redeeming](/thanasdefitools-docs/fact/staking-and-redeeming.md).
* **NOT yield-bearing in raw token terms.** FACT supply doesn't grow over time. Yield flows into the share price — the same FACT redeems for more WFLR each harvest cycle.

## Who it's for

The LST is designed for WFLR holders who want exposure to FAsset-collateral yield without the operational overhead of running an agent position themselves. Practical fits:

* **Long-term WFLR holders** who'd otherwise leave the position idle. The LST puts the WFLR to work without changing the underlying exposure (you can still redeem to WFLR at any time).
* **Treasury / DAO allocations** that want a single share token instead of a portfolio of per-agent positions — easier accounting, single redeem path.
* **Yield aggregators** building product on top — FACT is a vanilla 18-decimal ERC-4626 token, so it slots into any 4626-compatible aggregator without wrapping.

## What FACT is NOT

* **Not insured.** There is no insurance fund, no liquidation backstop, no guarantee of redemption price. If an agent enters full liquidation and the pool's collateral ratio falls below the recovery threshold, FACT holders absorb the markdown proportionally.
* **Not a stable asset.** FACT tracks the underlying WFLR position 1:1 at first deposit, then diverges upward as yield accrues. Share price can also temporarily mark down during agent-status events (markdown lifts back when the agent recovers, but there's no guarantee of that recovery).
* **Not currently audited.** The contract is live but has not been independently audited by a security firm. Read [Risks and FAQs](/thanasdefitools-docs/fact/risks-and-faqs.md) before staking. **Start with small amounts.**

## Contracts and status

* **Live contract (FACT v2):** [`0xe9a5C4d7e9A9579F1352961f922f2F97C8DA42Bb`](https://flare-explorer.flare.network/address/0xe9a5C4d7e9A9579F1352961f922f2F97C8DA42Bb). It is owned by the [`LSTAdmin`](https://flare-explorer.flare.network/address/0x5C1E56445152155ff690f519B9cbD76bf477f9F2) contract at `0x5C1E5644…`, which a Ledger hardware wallet owns.
* **The first FACT contract (v1)** at `0x54eC497A…ec0b` is paused for good. Its holders received v2 FACT one for one at the same share price. See the [migration FAQ](/thanasdefitools-docs/fact/risks-and-faqs.md#fact-v1-to-v2-migration).
* **Backed agents:** 6 FXRP agents, registered with equal weights.
* **Inflation defense:** 100 FACT permanently locked at `0x...dEaD`.
* **Bootstrap LP:** a 2 FACT + 2 WFLR full-range position on Enosys V3 (0.05% fee tier) at [`0x91aE57477Be40c468C6d0b0810cCA8008F67C925`](https://flare-explorer.flare.network/address/0x91aE57477Be40c468C6d0b0810cCA8008F67C925), NFT tokenId 45521, held by the protocol treasury.
* **Verified:** the v2 contracts are verified on [flare-explorer](https://flare-explorer.flare.network/address/0xe9a5C4d7e9A9579F1352961f922f2F97C8DA42Bb), with the library link.
* **Audit:** none yet, and there is no bug bounty.