Hey everyone, trust all is well! We’ve just launched and have whitelisted $TRU as another avenue for the community to use the tokens across the DeFi space.
TL;DR on what we do:
Fyde allows users to receive diversified yield and broad crypto market exposure by depositing native tokens into our Liquid Vault. $TRU has been whitelisted on Fyde Treasury Protocol and the $TRU token is eligible for deposit. We are currently in Phase 1 of our launch and are sharing what we have built with the communities we support (e.g. Merit Circle, Alchemix, and more). We would like to invite you as a TrueFi member to test our protocol and be eligible for our early airdrop before the general public.
Fyde is a DeFi protocol designed to upgrade and simplify the crypto treasury and asset management process for DeFi users, enabling long-term and sustainable growth.
Fyde Treasury Protocol has created a diversified liquid vault that can be accessed via a depositor’s native token, thereby allowing instant exposure to the broad crypto market. Tokens have to pass a series of strict checks before they’re allowed into the liquid vault, including market cap and liquidity filters, security audit and founder checks, oracle validations (to prevent price manipulation), and more.
The protocol enables proxy governance (not yet available but coming soon for TrueFi) by providing founders, investors and treasuries the ability to preserve governance rights on deposited assets. These features allow users an easy way to diversify concentrated token positions and optimise operating runway without exposing themselves to governance attacks and related risks.
Traders and portfolio managers from JP Morgan CIO and Equities, Deutsche Bank, PhDs and Research professors from NASA; Stanford, UCLA, Cambridge, Core devs from Synthetix, Ocean Protocol, Bloomberg, Wintermute.
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Benefits to TrueFi Community:
Asset and Yield Diversification of Individual Holdings
Fyde provides diversification, liquidity, and yield to individual depositors. $TRU whales may want to diversify a small portion of their holdings during positive market conditions to lower concentration risk.
The TrueFi community has the opportunity to deposit $TRU directly and receive $TRSY which represents broad crypto market exposure and which delivers diversified yield.
Reduce $TRU sell pressure
TrueFi’s community / recipients can deposit $TRU into Fyde instead of selling $TRU to fund expenditures/ take profits. This way, the community can still receive diversified crypto exposure and yield without having to sell $TRU, which should drastically mitigate sell pressure.
Increase $TRU liquidity and trading volume across DEXs/ CEXs through new pairs within the Fyde liquid vault
Depositing $TRU into the Fyde’s liquid vault acts like providing single sided liquidity, increasing the trading volume and liquidity of $TRU.
Fyde’s liquid vault will contain 50+ assets, opening new trading paths for $TRU. Lower volume trading pairs no longer need to be routed via ETH.
For example, if users wanted to trade $TRU <> $AAVE today, traders need to route from $TRU → $ETH, $ETH → $AAVE. Each step of this routing process costs gas to execute. However, because we have all these tokens in the same liquid vault, users can trade these tokens in our directly (eg. $TRU <>$AAVE).
This creates a new and cheaper way for the DeFi space to access $TRU, thereby increasing trading volume and liquidity across DEXs and CEXs.
No lock ups, non-custodial
TrueFi members can withdraw from the vault at any time (after the escrow period is complete) at the prevailing exchange rate. There are no lockups, and the protocol is non-custodial. However, it’s important to note that there’s a chance that depositors of $TRU may not be able to withdraw the same amount of $TRU that was deposited. The vault will target a risk / return optimization, and if $TRU is underweight in the vault, there will be a tax for withdrawing $TRU. Instead, users can opt to receive an “optimal allocation” to withdraw from the vault, in which case the vault will send back currently overweight tokens (i.e. the tokens that are outperforming).
Against Collaboration/ Negatives
Limited day 1 liquidity
Fyde intends to implement a programmatic buyback of LP tokens to facilitate deep liquidity for depositors. Until these bonding curves are implemented, there won’t be a large market for the liquid vault token $TRSY.
Can’t execute in large size on day 1
Fyde is a recently launched product. As a result, we won’t be able to accept large deposits such as $5m in $TRU. However, as Fyde continues to scale, we will be able to provide diversification, yield, and liquidity to a larger portion of the TrueFi asset base. Should community deposit requests exceed our desired weightings, the funds will not be accepted and will be refunded at the end of the escrow period (Jan 6th) at no cost to the depositor (besides gas).
Might not receive all $TRU back
The liquid vault is bound by risk concentration targets. As a result, if $TRU outperforms the entire crypto space by more than 2.5x, the vault will allow the crypto ecosystem to swap some $TRU within the sub-vault into $ETH. Our analysis has shown this to be an edge case risk that is unlikely to occur for most tokens.
$TRU may outperform $TRSY in the short term
The purpose of Fyde is not to outperform $TRU all the time, but rather to diversify and capture broad market performance. This is particularly helpful as well in market crashes, where diversification results in lower volatility for portfolios over time.
We recommend starting small and increasing $TRU deposits while the market moves to ensure the average entry into $TRSY benefits from positive market conditions expected over coming months.
We are charging 1% per year for this service, taken continuously over time. That means, for example, if TrueFi members decides to withdraw from the liquid vault in 3 months, then the total fee will be 0.25%.
We invite core TrueFi members and whales to reach out to us in a personal capacity should they wish to deposit large amounts or have direct communication with our team via telegram.
Our goal is to optimise design for our public launch (in 4-6 months) and integrate feedback received from this pilot. In other words, we want to build our protocol in a way that can best help TrueFi and its community. Having direct communication with TrueFi core team will ensure Fyde continues to align with community interests.
In order to test out Fyde.fi users can visit https://app.fyde.fi/ and deposit $TRU tokens into our escrow contract. Once the escrow period is complete, users will receive a fully collateralised and liquid token $TRSY which provides exposure to all whitelisted assets. All deposits before Jan 6th will be eligible for 2x points for our Airdrop.
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Gitbook: Introduction to Fyde protocol · Introduction to Fyde
Airdrop: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
Co-founder - Investment Strategy
- Yes, TrueFi should test Fyde with a small deposit
- I am interested to test in a personal capacity
- Interested, would like to know more
- Not interested