Wonderful Protocol is a DeFi project aimed at developing and popularizing synthetic tokens for multiple L1 & L2 Ecosystems. Wonderful Protocol introduces a decentralized solution by adopting a partial collateralized design, where Wonderly's synthetic tokens are backed primarily by ETH and partially by the native token AFX (approx 99.8% ETH backing).

AFX is the protocol utility token (on Arbitrum One) that also rewards its holders with 100% of generated protocol fee revenue. The ETH token is deposited into the protocol when a user mints xETH token, while the AFX token which is used for minting is burned. When the user redeems xETH tokens, the protocol pays back ETH tokens and mints the required amount of AFX tokens. Each minting and redeeming of synthetic assets like xETH on Arbitastic Protocol incurs a 0.50% and 0.50% fee, respectively. These fees are distributed as ETH and AFX dividends to users who lock their AFX on the platform.