Introducing Fyde to TrueFi community

General
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## Summary:

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.

About Fyde:

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.

Team:

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.

One Pager: DocSend

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.

Fees

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%.

Feedback

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.

Abstract:

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.

TrueFi Deposit
TrueFi Deposit1437×281 20.7 KB

Resources

Website: https://www.fyde.fi/
dApp: https://app.fyde.fi/
Twitter: https://twitter.com/FydeTreasury
Audit: DocSend
Deck: DocSend
One Pager: DocSend
Gitbook: Introduction to Fyde protocol · Introduction to Fyde
Airdrop: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.

Contact

Bo Zhang
Co-founder - Investment Strategy
Telegram: @bo_z112

Eneo Hollenbach
Growth Lead
Telegram: @eneohollenbach

  • 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
0 voters
3 Likes
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Thank you for the Proposal, Bo and Eneo.

This works similarly to an index token with a continual rebalancing feature which is fairly interesting.

I guess I can see the value for idle DAO treasury allocations to balance its average dollar value of. its assets, especially moving into the bull market where there will be a total relative increase in the market.

But the re-balancing feature could be at the detriment of overperforming tokens compared to underperforming tokens.

Additionally, if there is no-cool down period, someone could remove a large chunk of the pool and completely unbalance the pricing for all involved.

The fact that the weighting and rebalancing formula is not transparent can also add as an additional risk, as it’s a black box.

But overall, I think it’s an idea worth exploring.

One question, what will that be 1% fee be based on? The profits made or the deposits?

1 Like
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Great video for more understanding of Fyde

1 Like
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Thank you for the questions sir!

Yes, so the goal of the vault is to help solve the conundrum of how to put gov tokens in the treasury / contributors gov tokens to work without selling it on the open market and diluting the market with them. In this case it makes it possible to earn on the tokens and gain diversification without impacting the rest of the market. Or at the very least to a much smaller extent than selling or depositing into a standard incentivized dex liquidity pool would.

The re-balancing feature isn’t a market sell from our side, but we use a similar swapping mechanism as a Balancer vault for example. A main difference however is that instead of constantly rebalancing back to target immediately, we allow market drift to take place before rebalancing. By allowing market drift to occur, you can reduce impermanent loss quite a bit and get a much better performance outcome than just an LP position (the difference between a portfolio with full drift and a portfolio with 0 drift = impermanent loss).

Also unlike a Balancer vault, we don’t get our pricing based on relative weights on tokens in the vault, but from third party oracles (Uniswap V3 TWAP and Chainlink). Because of this, people can withdraw whatever they’d like from the vault and it won’t impact the pricing of the tokens in the vault or the pricing of the $TRSY token. In addition, if people withdraw tokens that will unbalance the vault, there’s an incentive driven tax system that will make it more and more expensive the more they withdraw (details below). What you brought up was a serious concern of ours as well, so we implemented this system to prevent that from happening.

I’ve attached more information on the current tokens in our escrow contracts (the first one was a day 0 test one for our immediate clients, and this current one is open to the general public). I’ve also included more details on different formulae regarding taxes, fees, below so you can have a closer look.

Escrow 1: Fyde | Address 0x87Cc45fFF5c0933bb6aF6bAe7Fc013b7eC7df2Ee | Etherscan
Current escrow: PooledDepositEscrow | Address 0xddc55e390841021b0e99179322f66d3a17e070e1 | Etherscan

As you can see, most of the allocation is $ETH at the moment, and the goal is to maintain a high allocation to $ETH over time while rounding out the rest of the allocation with altcoins that rebalance into the majors like $ETH. This way, you’re able to lock in gains throughout a market cycle (especially relevant in the case of a bull market) and hopefully outperform the broad market over time.

Regarding the fees, we charge 1% on deposits and do not take a performance fee. We wanted to be cheaper to use than the rest of the market, which charges about 2-5% on average + performance fee.

Hope this is helpful! Our goal with the post is just a friendly introduction to say hi, and to let you guys know that we’re around as another avenue to use $TRU in DeFi. :slight_smile:

And also to just give everyone in this community a heads up that we’re in our boosted airdrop period, for which deposits using $TRU are eligible for!

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Adding a separate post with the link to our github since I could only post 2 links in the last comment: Gitbook / Formulas: Fyde Contract - Fyde Documentation

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In support, on mobile I tried to deposit 100,000 TRU as a test via Trust Wallet 》Wallet Connect, but unfortunately the deposit failed. Load time was extremely long and never ended up getting any deposit confirmation on Fyde end.

I did however recieve “Smart Contract Call Executed”.But nothing left my wallet and no deposit showed up in Fyde. For some reason It also tried to execute 2 further separate wallet confirmations when opening back to existing Wallet Connect connection to Trust Wallet after first confirmation was confirmed.

When trying to enter a deposit amount mobile numerical keypad keeps dropping out.

Have you run live $TRU test deposits on mobile?

Can you show a live successful recorded transaction on mobile ?

On PC i was successful in my deposit

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Ah saw your deposit come through - thank you so much and glad to have you onboard! :fire::tada:

That’s very strange you experienced that. I just did a screen record of the process on my end and everything looked okay:

That being said, you’re not the first person who said they experienced some issues with mobile so we’re making it a top priority to investigate further on our side. Some had trouble with ETH as well (hence I just did an ETH trial), so seems to be hit and miss. Either way we’re going to take steps to deep dive and optimize this better.

Thanks again for flagging that!

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