Generate Yield On FXS with Fyde Treasury Protocol

Governance Proposals Liquidity Providing
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Generate Yield On FXS with Fyde Treasury Protocol

Summary:

Proposal to deploy idle FXS from the Frax Treasury into the Fyde escrow contract. This will accrue 36~60% APY for the next 6 months in the form of FYDE, and kick off a long-term partnership between Frax and Fyde.

Note: This solely involves depositing FXS into a non-custodial smart contract. No FXS is sold at any point and 100% of deployed FXS is returned to the treasury at the end of the proposed engagement. There are also no lock-ups on withdrawals, so Frax can withdraw the FXS at any time during this engagement.

Motivation:

The Frax Treasury currently holds a large portion of FXS.

No yield is currently being generated on the treasury’s FXS.

Fyde presents a yield opportunity that ensures the protection of 100% coin principal.
This yield is paid in FYDE tokens as part of our Treasury Incentive Program.

Why Fyde is providing an allocation of tokens to Frax
Fyde is a treasury management protocol focused on providing a novel route for treasury diversification, native token liquidity, and yield.

By engaging with the Frax Treasury, Fyde can distribute its governance token FYDE to strengthen the Frax Treasury. This also introduces Fyde’s Liquid Vault to the Frax community and opens a relationship between the two protocols for potential future collaborations.

Specification - Liquidity Terms:

Provide a % of FXS Treasury holdings to earn a % of the total FYDE token supply equivalent to 36~60% APY.

Return Breakdown:

100% of coin principal returned after 6 months.

+FYDE token allocation which can be used to further support Frax’s treasury.

All funds can be withdrawn at any point before the end of the 6 months.

If Frax chooses, Fyde’s Liquid Vault is available to obtain diversified market exposure.

Fyde Token Allocation:

Receive a % of total FYDE token supply.

3.5% unlock at the end of the deposit period.

Vesting: 6 months linear.

Next steps:

  1. Deposit into consensus amount of FXS into https://escrow.fyde.fi/
  2. Earn FYDE tokens over the next 6 months.
  3. Return 100% of the principal FXS deposit.
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Can you elaborate on what Fyde’s current market cap is and what audits the smart contract you want Frax Finance to deposit FXS into have undergone?

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Hi Michael, Fyde is currently pre-TGE
Contracts have been audited by Halborn and Pashov: Security Audit | Fyde Documentation

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Have you fundraised at a certain valuation? Or have a public target FDV at TGE? Trying to figure out how how to value the tokens we’d be receiving. Your linked smart contract audits has numerous severe and high risk warnings, have those been patched on the deployed smart contracts? And if so, when can we expect another set of audits to be conducted?

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  1. Who are Fyde’s backers?
  2. What valuation did your have for your seed round?
  3. What is the breakdown of tokens that go to investors vs team vs community etc.
  4. What insurance exists if there is a hack?
  5. What other protocols have committed and how much have they commited to your vault?
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