# Introduction to Fyde ### About Fyde Treasury Protocol Fyde brings to the crypto space auto-rebalanced and liquidity optimised "Liquid Vaults" that are risk managed by AI. Fyde's mission is to help crypto users consistently lock in gains, earn yield, and stay liquid. In doing so, this allows users to grow their crypto holdings faster and with less volatility. Fyde accomplishes this via a new archetype called the Liquid Vault. The goal of the first vault, which is accessible via a variety of tokens including native governance tokens, is to deliver broad crypto performance with lower downside volatility. The vault wrapper token ($TRSY) is given to depositors as their share of the vault, and represents the performance of all of the assets within the vault. The vault itself is auto-rebalanced and risk managed by AI, helping depositors capture returns with lower volatility. Since harnessing liquidity for a basket is easier than harnessing liquidity for a single token (e.g. ETFs vs individual stocks), our goal is to ensure consistent $TRSY liquidity across market dynamics for depositors to transact using this tokenised vault. Our roadmap includes vaults that will target restaking as well as consumer narrative tokens, with additional vaults being deployed on L2s and other chains. Underlying all vaults are on-chain network simulation models and AI risk management agents to combat downside market volatility and to optimise the liquidity of the wrapper token ($TRSY). The governance token, $FYDE, acts as a yield enhancer that also enables a series of incentives to facilitate deep and efficient on-chain liquidity for $TRSY. ### What Does This Mean For Users? Fyde aides users across the different dimensions of faster growth and increased liquidity. Users deposit into a vault consisting of many different tokens, and as tokens outperform, Fyde locks in those gains and rotates them into either a safer asset like $ETH and stables, or an underperforming asset depending on the market cycle. This, combined with AI risk management tools, lowers overall volatility for users. In doing so, Fyde unlocks the ability for users to compound (and thereby grow) faster. ### Why Does This Work? No one knows for sure if one token will outperform another in the future. But what we do know is that diversified portfolios are less risky than non-diversified portfolios. This is true for stocks, and this is true for crypto as well.

Source: Risk Reduction and Portfolio Size: An Analytical Solution, Edwin J Elton & Martin J Gruber, updated by Fyde Treasury. Data since Jan 1, 2021. Deep dive here.

By lowering downside volatility, Fyde gives users a chance for their assets to compound faster and earn more in a shorter period of time. This can be seen in an illustrative example below, where both return streams have an average return of 5% but the less volatile one outperforms. Fyde taps into this simple dynamic to help users grow faster while remaining liquid.

Simple average returns of 5% for both portfolios.

# Use Case ### Example 1 Crypto users across the space struggle to keep track of token allocations across wallets. As a result, holders can often forget to sell winning positions and cut losing ones in real time - sometimes users forget to claim an airdrop or are rugged without even realising. Often, the question is: “Which rising category or token narrative should I be buying or selling in the first place?” Fyde’s Liquid Vaults solves this for users. The Liquid Vault accepts a variety of tokens which are automatically distributed across a diverse range of tokens and narratives. Gains from winners are locked in and losses from losers are minimised. AI and machine learning identifies risks before they’re going to happen, thus protecting users’ funds against rugpulls or isolated and violent price actions. This provides a layer of protection for users’ assets that most individuals wouldn’t be able to access by themselves. The Liquid Vault itself returns a yield-bearing wrapper token pegged to the portfolio that can be traded in the open market, unlocking new liquidity pathways for depositors which are further optimised by machine learning agents. Through employing artificial intelligence and agent-based simulation strategies, vault solutions can efficiently mitigate risk and increase liquidity for depositors. This makes users' returns on investments more predictable and less volatile, allowing for faster compounding over time. ### Example 2 There are a lot of things preventing large holders from diversifying and accessing DeFi. One of the most common reasons is that there is a mismatch between the liquidity of the token and the amount that needs to be sold to diversify. For instance, a survey of the top 100 DAOs found that the average slippage of a 3% native token treasury sale was -80%. And of course, a market sell would tank both the token price and the treasury value as well. Market makers aren't a great option either, as fees can amount to 30% per transaction. Not to mention, there are all sorts of other issues that founders and protocols / DAOs face by diversifying: opening yourself up to governance attacks, angering the community, etc. Fyde solve this by allowing deposits of native governance tokens into a diversified vault of assets while enabling users to retain governance rights and preserving direct user control over their allocations. Using the revenue we accrue to the protocol, we then facilitate the creation of liquidity for this vault, and leverage machine learning to deepen its liquidity over the appropriate price ranges. Within Fyde's liquid vault, depositors' tokens over a range of sub-sectors come together to compose a portfolio management strategy—rebalancing to lock in consistent gains and implementing a dynamic weight mechanism that targets a range of volatility metrics for the vault. Through Fyde, depositors can achieve institutional quality diversification, liquidity, and yield...without having to sacrifice native governance rights. # Utility of $FYDE ## What is the Purpose of $FYDE The main purposes of the $FYDE tokens are to incentivize community members who participate in the protocol and give them a seat at the table when it comes to making decisions about how to put their assets to work. $FYDE is a governance token with time-weighted voting and value accrual mechanisms. By staking $FYDE, users receive veFYDE. Holding veFYDE givers users direct control over the composition of assets within the Liquid Vault, and allows users to receive another stream of revenue from the protocol. ## What is veFYDE? Fyde’s governance relies on vote-escrowed $FYDE, known as veFYDE, which enables a higher degree of decentralization. By utilizing veFYDE, $FYDE holders gain access to an array of features that increase the token’s utility. In this way, veFYDE serves as an important tool for maintaining the long-term health and success of the protocol. Holding veFYDE entitles you to: 1. Direct which assets are being deposited into the vault 2. Participate in prediction markets to make additional revenue in $FYDE $FYDE holders can lock their tokens to receive veFYDE. The longer $FYDE is locked, the more veFYDE users receive. Users can lock 1000 $FYDE for a year to have a 500 veFYDE weight. Each $FYDE locked for 2 years is equal to 1 veFyde. The number of veFYDE you will receive depends on how long you lock your $FYDE. The minimum locking time is one week and the maximum locking time is 2 years. Your veFYDE weight gradually decreases as your escrowed tokens approach their lock expiry. It is important to note that veFYDE is non-transferable. ## Fyde Emissions 2.5% of the $FYDE supply will be distributed as weekly emissions for rewarding participants of $FYDE. 95% of this 2.5% supply will be distributed over the course of 2 years, with the remaining issued over the next 10 years. A constant number of $FYDE tokens will be issued to the staking contract every epoch (approximately 7 days). The initial reward would be 44,888 $FYDE tokens every epoch, this number would be reduced by halving it every 196 days. The emissions will follow a two-stream $FYDE emission process: 1. **Voting-Based Emissions:**\ $FYDE token holders who have locked their tokens (veFYDE holders) can use their voting power to determine which asset depositors should receive emissions. For example, if all veFYDE holders vote for $ETH during an active voting period, all users who have deposited $ETH during that time will receive $FYDE token rewards proportional to their deposit value. 2. **Prediction Market Structure:**\ Users can vote for any asset currently in the vault in a prediction-market style system. Rewards will be allocated to users who vote for tokens that achieve the best price performance over the subsequent voting period (more details can be found in [Prediction Market](/protocol-overview/prediction-market)). # $FYDE Season 2 Airdrop ## Season 1 Airdrop For Season 1, Fyde airdropped 7% of its total token supply to participants! We believe in putting our community first, and wanted to make sure that the early participants are appropriately rewarded for their faith and confidence in us. Airdrop participants were rewarded based on how active they were in using Fyde's products (Liquid Vault and restaking aggregator), how much they actively participated in Fyde's community via Discord and Zealy, and whether they farmed using Fyde's Telegram mini-app. The cut off period for Season 1 was June 21, 2024, with the airdrop undergoing a 30 day vesting period to mitigate sell pressure. ## Season 2: Now that Season 1 is complete, we are focusing our attention on Season 2. Season 2 will revolve around much of the similar focus points of deposit sizes, community participation, and more. But now, there are a few new twists. First, Fyde's Bullrun Simulator Game will play a larger role in Season 2, with users being able to play the game . You can find more details about the game in the link below: Second, Fyde is releasing a series of new products this year in the form of a predictions market on top of the Liquid Vault, as well as a high APY yield vault. Participants in these projects will be eligible for the Season 2 airdrop as well. Finally, community participation carried over from last year will continue to be a factor as well. We anticipate Season 2 to be in Q2 of this year, although this will be contingent on market performance and $FYDE token dynamics. # FAQ You've got questions? We've got answers. What are the benefits of using Fyde Treasury Protocol? Token prices are volatile often leading to heavy downside losses. Fyde Treasury Protocol utilises autonomous models that help depositors get diversification, enhanced token liquidity, and yield all in one place - without having to sacrifice your native governance rights. Fyde aims to deliver lower volatility as well, allowing users to compound and grow their crypto assets faster. ### What ecosystem are you building on? We're currently on Ethereum mainnet and are actively exploring different EVMs and Layer 2s. These will be live in the near future. ### How are the assets in Fyde custodied? All assets deposited into Fyde will remain on-chain, and we are 100% non-custodial. You retain all rights to your tokens. ### Are there any lockups on my deposit? Nope! No lockups for deposits in the vault. ### What measures does Fyde Treasury Protocol take to ensure the security of my assets? There are a lot of different approaches we take to reduce the risk to assets in the vault. From the onset, security has been top of mind for us. The team that built Fyde consists of security leads from places like Synthetix, as well as independent auditors. We underwent an audit as well with Halborn and Pashov Audit Group, the details of which can be found [here](https://app.gitbook.com/o/q4qm5mU2YTFLajkFoxjC/s/bQllaeunfO4BPaZU1ABc/~/changes/98/references/security-audit). We also work to protect depositors against things such as scam projects or price manipulation, and leverage tools such as AI and machine learning to do so. As part of our whitelist, we use several layers of filtering to ensure the quality of projects accepted into the vault. For instance, we start with a series of market cap and liquidity filters, followed by founder backgrounds and audit history, and even look at oracle pricing availability (Uniswap V3 and Chainlink) to help ensure projects cannot manipulate their prices while in the vault. Additionally, we are building network analysis structures to run machine learning algorithms as preventative threat detection. Once assets are in the vault, we continue to run technical analysis and AI risk tools, as well as leverage Hypernative to provide an added layer of security against blackswan risk in our vault by actively monitoring all the tokens in the vault for suspicious on-chain activity. ### What fees are associated with using Fyde Treasury Protocol? We charge 1% per annum taken linearly over time, by minting $TRSY to the Fyde vault. ### Retaining governance rights - does this mean I can still vote on my proposals? How does that work? Yes, that’s right! You can still vote on your proposals. Simply choose to “Retain governance” when you deposit (seen below), and you will receive $gTRSY which is mapped to the specific token that you deposited. You can then redelegate your voting rights to another wallet address of your choice and use that wallet to vote as you normally would have. We currently do not offer support for vote escrowed tokens, but will work to support this as part of our public beta launch if there’s enough demand. Please note, the "Retain governance" module will open appear after you've selected a token whose governance rights we support.
### When I withdraw, do I get my deposited tokens back? Only if you choose to keep governance rights. Otherwise, you can either select which token you get back (which will incur a penalty if it results in unbalancing the vault). ### Where can I go for support if I have issues or questions about Fyde Treasury Protocol? Feel free to stop by our Discord: # Liquid Vault Mechanics Fyde pioneers a secure, non-custodial 'liquid vault' representing the cutting edge of DeFi. Owners deposit a variety of tokens into the liquid vault, retain ownership over their tokens and gain enhanced performance, yield and liquidity. This gives users a systematic approach to access the crypto space in a simple, painless solution. ## What is $TRSY? $TRSY (or the Treasury Token) is the liquid vault token that represents the value of the overall vault and that performs in line with the weighted average of the tokens within the vault. Effectively, $TRSY is the tokenised form of the vault. $TRSY token is backed 1-to-1 with the underlying assets at the time of deposit, and you can either hold onto it for long-term diversification or redeem it for a liquid portion of the underlying assets of the vault. What this means is that while your deposit may fluctuate in value to $TRSY, each dollar of $TRSY is backed by a dollar of assets within the vault. You can also sell $TRSY on the open market or send it to a third party. The asset allocation within the vault is driven by the goal of generating strong risk-adjusted performance over the long term, reflecting broad market diversification. It does so by setting concentration targets for tokens and providing incentives for traders to rebalance the outperforming token to underweight tokens or $ETH once certain outperformance thresholds of the individual tokens are met. These tokens are then rebalanced back to their target weights using community driven incentives, effectively "locking in gains" over time. As a result, holding $TRSY delivers to the owner a risk-adjusted performance experience that can be viewed as similar to that of broad crypto market diversification. This process will be abstracted for most users however, and all users will see is a simple concentration limit after which deposits will incur tax. And of course, liquidity will be optimised for $TRSY to allow holders to transact with it or buy / sell it on the open market. ## Depositing Into the Vault / Minting $TRSY You can access the liquid vault by depositing one of many whitelisted tokens. Once the token is accepted into the vault, you will receive $TRSY. When depositing, it's essential to keep in mind that one of the goals of the protocol is to generate strong risk-adjusted returns for the user. Therefore, if a deposit unbalances the protocol (i.e. pushes a token too far overweight), an imbalance penalty will be incurred. This is to ensure the performance of the vault for the existing depositors and will be touched on in greater detail in the [Fyde Contract](/technical-overview/high-level-architecture/fyde-contract) section. ## Keeping Governance Rights / Minting $govTRSY You can also choose to retain the governance rights of your deposited tokens simply by switching the "Retain governance" toggle (below). The proportional value of $TRSY is still minted, however, it is automatically deposited into a separate custodial contract —issuing “governance TRSY” ($govTRSY) instead. This enables you to retain the governance power of the deposited tokens by giving you the ability to choose a wallet address or a Snapshot space to delegate to.
Keep in mind the amount of governance rights you have is dictated by the exchange rate of your deposited token with $TRSY. While additional governance rights might not always be available to give if your token underperforms $TRSY, the vault will allocate as many as are available. You can always withdraw the deposited governance token directly by burning your $gTRSY. Alternatively, you can also unstake $gTRSY and receive $TRSY. This action will permanently give up governance rights but will give you access to greater market liquidity for trades. ## Withdrawing From the Vault / Burning $TRSY and $govTRSY Since we don't think lockups are in line with the ethos of DeFi, you can withdraw from the vault at any time simply by burning your $TRSY or $gTRSY tokens. Similar to depositing, it's essential to consider potential withdrawal penalty on already underweight tokens. **It's important to note that withdrawing from $TRSY does not ensure you will receive your deposited token back.** The token that withdrawers will be encouraged to remove from the vault is a token that when withdrawn will further optimises the risk parameters of the vault. Typically, this is a token that is currently overweight in the vault (i.e. a token that has been showing strong performance relative to the other tokens), which for front end users, translates to the tokens that are "Slippage Free".
If you had decided to keep your governance rights upon deposit, then you would have received $gTRSY instead. Burning $gTRSY results in you receiving your originally deposited token ± the prevailing exchange rate at the time of withdrawal. Alternatively, if you just want $ETH and are worried about unbalancing the vault and incurring imbalance slippage, you're always able to sell $TRSY on the open market for those tokens. ## Diagram of the Deposit & Withdrawal Process:
# AI Portfolio Optimiser Fyde employs a myriad of filters as well as AI and machine learning to make sure that the right assets enter the vault and to protect the assets within the vault. In doing so, users benefit from a pre-selected and pre-vetted whitelist of assets. ## Whitelist Process Fyde uses several layers of screens for the whitelist process. First, comes a liquidity and market cap filter to ensure that only tokens that can be swapped by our community without difficulty are added to the vault. Next comes several fundamental checks, such as founder backgrounds, audits, and more. Before a token is permitted into the vault, we also run a series of technical filters (e.g. price volatility within a recent time period) to ensure that there's no token price manipulation right before depositing. Finally, we use machine learning on network analysis to identify any additional risks associated with the token. ## Insights into Our Usage of Network Analysis On-chain transaction analytics are used to create an in-depth look at the blockchain network. This serves as an additional layer of security and a real-time monitoring technique. The example below highlights one such use case. This strategy uses on-chain analytics to characterise the state of transaction networks of a token or protocol. The image below shows an unfiltered version of data from a real ERC-20 token. This image captures over 1 million transactions. With wallets (i.e. nodes) connected by transactions (i.e. edges).

This image captures over 1 million transactions. With wallets (ie nodes) connected by transactions (ie edges)

AI and ML models are then applied to filter data used within the Fyde AI platform. Wash trading measurement amongst traders and tokens identify the amount of bot driven volume segmented amongst groups - this then feeds directly into Fyde's AI agent framework. In this instance it powers the whitelist decision process.

Fyde filters wash trading and adjusts risk profiles accordingly

Pattern recognition and threat detection derived from bot driven trade interactions associated with behaviors meant to bolster trading volume (e.g., wash trading) are used in many different ways. This on-chain screening methodology enables the Fyde team to gauge the health of a decentralised network, estimating sets of unique users, organic growth trends, degrees of centralisation, amongst other patterns. These metrics are tabulated for protocols/DAOs, serving as inputs for a proprietary risk-scoring model that determines the eligibility of tokens. ## Protection Within the Vault Once a token is in the vault, we employ a combination of quantitative indicators, as well as AI and machine learning techniques alongside [Hypernative](https://www.hypernative.io/) to identify risks before they occur. By leveraging these types of additional AI and ML tools, we can catch potential risks early and quarantine the impacted tokens. Some of the risks that are analysed include governance attacks, liquidity pool risks, transaction risks from certain wallets, and more. Once tokens are quarantined, users will be unable to interact with them, thereby protecting the rest of the assets in the vault. Because we use oracles for pricing, price impact on a single token does not impact the performance of the other assets in the vault. # Increasing Liquidity with ML While one of the immediate benefits of using Fyde is capturing diversification, another key benefit of the Fyde Protocol is the increased liquidity that's provided to the user. This comes in several forms. First, $TRSY itself acts as a pathway to liquidity, for which we use machine learning to deepen the trading depths of. Second, depositing a token into Fyde can increase the liquidity and trading volume of that deposited token as well. ## Facilitating Liquidity for $TRSY A core goal of Fyde is to make the $TRSY token as liquid as possible for users to trade across markets. To facilitate this, Fyde uses revenue accrued to the protocol to incentivise users to create $TRSY/$ETH LP pools on Uniswap V3. We buy these LP tokens from users, ensuring a steady increase in liquidity over time as well as constant liquidity across market conditions. Liquidity can often dry up in bear markets due to LP providers removing their positions. By virtue of Fyde owning these LP positions, we can ensure that liquidity for $TRSY remains steadfast even in bear markets. To identify how to deploy the liquidity, we built an agent based simulation environment to identify optimal arbitrage pathways and to stress test liquidity across market conditions. An illustrative example of our dashboard output can be seen below:
By combining machine learning with the agent based simulations, we can then deploy liquidity much more efficiently across Uni V3 in real time. Many projects simply deploy full range liquidity. However, by narrowing the deployment surface by 75%, you can increase the trading depth by 4x. To give an example, more precise deployment of liquidity can result in $100,000 converting into $400,000 of liquidity, with the machine learning engine adjusting the liquidity provisioning in real time. ## Increasing Token Liquidity via Arb Trading Within the Vault Fyde helps unlock liquidity for your tokens within the Fyde vault. Similar to an AMM, Fyde encourages arbitrageurs and market traders to rebalance tokens to their target allocations. However, a key difference in behavior is that Fyde allows market drift to occur before letting the rebalancing take place, which typically results in stronger long-term performance as this significantly reduces the amount of impermanent loss. That said, because of these types of similarities to a traditional AMM, the tokens that are deposited can also experience a similar type of liquidity phenomenon. As there is no technical constraint in terms of how many tokens can be deposited into the vault, tokens that are deposited into the vault will have now unlocked new trading pathways and liquidity with every other token in the vault. **For example, if there are 50 tokens in the vault, depositing a new token will unlock trading pathways and liquidity with all 50 tokens in the vault.**
## Increasing Token Liquidity via $TRSY/Vault Arbitrage Like with any backed token, there exists an arbitrage process to keep $TRSY trading in-line with the net asset value (or fair underlying value) of the vault. In our case, assuming $TRSY trades above the net asset value of the vault, users can deposit tokens directly into Fyde Protocol, mint $TRSY, sell $TRSY for the prevailing market value, buy more assets, and continue this loop until $TRSY is trading in-line with the net asset value. Conversely, if $TRSY is trading below the net asset value of the vault, buyers and holders can burn their $TRSY directly with the protocol to withdraw a liquid portion of the underlying. They can then sell those assets, buy more $TRSY, and arbitrage the gap until $TRSY trades in-line with the net asset value of the vault. A visual representation is shown below.
This type of arbitrage process is the same arbitrage process used by ETFs to trade in-line with the underlying component stocks or bonds, and has been [shown](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3142081) to be instrumental in increasing the liquidity of the underlying assets held by the ETF. The same is true for crypto as well. These features make Fyde a powerful way for DAOs, protocols, and founders to both gain a new pathway to liquidity, as well as to increase the liquidity and trading volume of their native tokens. # Retaining Governance As mentioned in the [Protocol Mechanics](/protocol-overview/liquid-vault-mechanics) section, you can keep the governance rights of your token when depositing into Fyde. Too often, protocols and DAOs end up sacrificing governance rights in an attempt to diversify, access yield, or to interact with DeFi in general. Unfortunately, this can open oneself up to governance attacks, resulting in things like dissolution, draining of wallets, etc. Through Fyde, you can interact with and experience the benefits of DeFi without having to lose all of your governance rights in the process. If you wish to keep governance rights on your deposited tokens, you simply need to select the "Retain governance" toggle when depositing (shown below).
The proportional value of $TRSY is still minted, however, it is automatically deposited into a custodial contract— issuing “governance TRSY” ($gTRSY) instead. This enables you to retain the governance power of the deposited tokens by giving you the ability to choose a wallet address or a Snapshot space to delegate to. To do so, you simply go to the Governance tab and choose which token to redelegate. You then choose whether you'd like to redelegate to an ERC-20 wallet or a Snapshot space, input the wallet address, and click "Delegate" (shown below).
It's important to keep in mind that **the amount of governance rights you have will fluctuate based on the relative exchange rate of your deposited token and $TRSY**. For example, if your token underperforms $TRSY by 20% then your governance rights increase by 20% given the new exchange rate. And conversely, if your token has outperformed by 20% then your governance rights decrease by 20%. While this may seem counterintuitive at first, you can think of this as a "trade". If you were to sell your token for $ETH, $ETH outperformed by 20%, and you bought back your original token, then your governance rights would have increased. On the other hand, if your token outperformed $ETH, then your governance rights would have decreased once you bought back your tokens. The key difference is that through Fyde, you still get to keep your governance rights during the course of this trade. Because of this fluctuation, you will need to rebalance your governance rights whenever you vote to ensure that you have the latest counter.
If you forget to rebalance while your governance allocation is overweight, the protocol may rebalance for you if it needs the tokens to perform pool operations. # Liquid Restaking Aggregator By creating an aggregation strategy, Fyde aims to maximize the accumulation of[ airdrop points](https://docs.fyde.fi/getting-started/fyde-points) and yields for its users. All in an easy to use way. Big thanks to participating LRT protocols building out these amazing products:[ Ether.fi](https://www.ether.fi/),[ Ion Protocol](https://ionprotocol.io/),[ Pendle](https://app.pendle.finance/points),[ Swell](https://www.swellnetwork.io/),[ Puffer](https://www.puffer.fi/),[ Renzo](https://www.renzoprotocol.com/),[ KelpDAO](https://kelpdao.xyz/),[ Zircuit](https://www.zircuit.com/) and[ Eigenlayer](https://www.eigenlayer.xyz/). ### What Differentiates Fyde? This approach allows for the accumulation of airdrop points, positioning Fyde users to benefit significantly from potential airdrops and yield opportunities. Users can make a single deposit and be immediately exposed to 9 different confirmed airdrops (and possibly more if projects cross drop 👀) in the restaking space. This means paying gas just once instead of 9 different times. Fyde handles everything everything else for the user, including boosting the points and yield you receive through Pendle and Zircuit to give you more rewards for your deposit. ### How Fyde Works: A Step-by-Step Guide Engaging with Fyde is straightforward. Here's how you can get started and potentially benefit from our unique aggregation model: **Step 1: Connect Your Wallet to Fyde** * Visit the [Fyde LRT platform](https://restaking.fyde.fi/) and connect your Ethereum wallet. **Step 2: Participate in Fyde's LRT Aggregation** * Input how much ETH you'd like to deposit, and click "Stake".

Hitting Stake Opens the Deposit Dialogue

Following the Steps Wraps Your ETH and Stakes it Into Fyde's Aggregator

### And that's it. Usually, in other DeFi protocols, leveraging up and creating additional alpha from deposits require sophisticated knowledge of investment strategies. To properly monitor and gauge risk requires technical infrastructure and a lot of time. However Fyde cuts out all of the hard work for the end user. Below are details of how the initial set of strategies are implemented. **Step 1: Allocation of ETH** * Fyde deploys an equal amount into Swell, Ether.fi, Renzo, Kelp, and Puffer. These strategies deploy into Eigenlayer as well. * Fyde deploys a smaller amount into Lido for wstETH to deploy into Ion and Puffer. * Fyde deploys the restaked tokens into Pendle and Zircuit to generate boosted points and boosted yield. **Step 2: Accumulate Airdrop Points** * By depositing into Fyde, you'll start accumulating[ airdrop points](https://docs.fyde.fi/getting-started/fyde-points). * These points increase your eligibility for potential airdrops and rewards. * Fyde’s simulation frameworks seek out the most promising strategies to allocate ETH toward. **Step 3: Optimize Your Yield** * Fyde's platform automatically optimizes your staked assets for enhanced yield, allowing users to receive more yield than just restaking alone. **Step 4: Monitor Your Progress** * Fyde's dashboard provides real-time insights into your accumulated airdrop points and yield. **Contract Address:** Contract Address: eth:[0x3f69F62e25441Cf72E362508f4d6711d53B05341](https://etherscan.io/address/0x3f69f62e25441cf72e362508f4d6711d53b05341) # Prediction Market ## Overview Fyde's prediction markets will enable users to guess which token in the Liquid Vault outperforms. In doing so, users will be able to constantly interact with the gamified Liquid Vault, and obtain a source of revenue in $FYDE for accurate predictions. In order for users to access the prediction markets, users first need to stake $FYDE for veFYDE. This can be done on the Earn tab:
## How to Use Begin by selecting Add Asset in the Asset Gauge Module:
Next, choose the assets you think will outperform.
You can change the voting split by adding more votes to certain tokens. This will impact the payout.
## Prediction Markets Emissions ### Description Fyde will follow a two-stream $FYDE emission process to reward token holders: 1. **Voting-Based Emissions:**\ $FYDE token holders who have locked their tokens (veFYDE holders) can use their voting power to determine which asset depositors should receive emissions. For example, if all veFYDE holders vote for $ETH during an active voting period, all users who have deposited $ETH during that time will receive $FYDE token rewards proportional to their deposit value. 2. **Prediction Market Structure:**\ Users can vote for any asset currently in the vault in a prediction-market style system. Rewards will be allocated to users who vote for tokens that achieve the best price performance over the subsequent voting period. Below is an overview on the emissions process for Fyde's prediction markets. ### Technical Overview Users vote using their **veFYDE balance** on a set of tokens within the vault $$T\_i$$. They participate in a prediction market that rewards them for selecting winning assets. **40% of epoch $FYDE emissions** are allocated to users who voted for assets that outperformed during that epoch. Performance is measured based on the percentage price change of the asset within the epoch: $$ \Delta P\_i = P\_i^n - P\_i^{n-1} $$ The price change of the overall vault is calculated as: $$ \Delta P\_T = P\_T^n - P\_T^{n-1} $$ The share of epoch emissions that each asset is entitled to is determined by: $$ S\_i = \dfrac{\text{max}(\Delta P\_i - \Delta P\_T,0)}{\sum\_i \text{max}(\Delta P\_i - \Delta P\_T,0)} $$ The total $FYDE reward allocated to each asset $$R\_i$$ is then calculated as: $$ R\_i = S\_iR\_T $$ where $$R\_T$$ = total $FYDE reward for the epoch. The asset reward ratio $$S\_i$$ is computed by evaluating the relative price performance of each asset compared to the total vault: $$ S\_i = \dfrac{\text{max}(%\Delta P\_i - %\Delta P\_T,0)V\_i}{\sum\_i \text{max}(%\Delta P\_i - %\Delta P\_T,0)V\_i} $$ Finally, individual user rewards are determined by multiplying the asset reward share by the proportion of the user’s veFYDE balance used to vote on the asset relative to the total veFYDE balance cast for that asset. *** # Roadmap Fyde's main vault opened for the public in January of this year. Since then, we've gained traction with many founders, protocols, and DAOs looking for liquidity, diversification, and a better way to manage their portfolios. Below is our expectation of where the future will take us.
# Tokenomics Fyde follows a dual token model - **$TRSY** and **$FYDE** **$TRSY**: the liquid vault wrapper token that is pegged to the performance of the Liquid Vault. This token is received by all depositors of the Liquid Vault. **$FYDE:** the protocol's native governance and value accrual token. The two token model allows for multiple avenues of participation in the Fyde Treasury liquid vaults. While $TRSY empowers users to build wealth by accessing the gains of a managed portfolio, the $FYDE token unlocks the benefits of the protocol as a whole. This is done using a buy-back mechanism funded from 80% of all fees generated on the platform. Fees are offered from a diverse source of revenue streams, such as imbalance penalties on deposits and withdrawals—this ensures that if a user makes a trade with the protocol that deviates from the optimal portfolio distribution, $FYDE token holders can capture additional revenue to help offset this risk. Fees are also generated from the various sources of yield offered by the protocol, as well as on swaps made on the $TRSY/WETH Uniswap V3 Liquidity pool. As the protocol continues to grow, $FYDE token holders are able to capitalize on the activity on the platform. As the platform continues to expand with the launch of new vaults, $FYDE token holders will unlock new responsibilities, benefits, and opportunities. $FYDE token governance will allow users to create vaults with their own strategies and asset classes. Users will be allowed to vote on which vaults to incentivize and receive rewards if their strategies outperform. This update will pair the $FYDE token with the vote-escrow model, aligning incentives for choosing strategies that are in line with the long-term health of the platform as a whole. ### $FYDE Token: The $FYDE token is a path towards decentralization for the Fyde protocol. The Fyde Protocol has four major revenue sources that flow to the $FYDE token holders. After one year's of runway is secured, 80% of the revenue will be used for token buybacks, while the other 20% will be used to fund protocol development and operational goals. ### Tokenomics Structure: **Ticker:** $FYDE **Total Supply:** 100,000,000 **Initial Circulating Supply:** 8,783,333 **Distribution:**
**Vesting Schedule:**
The founding team, developers, early VCs, and pre-seed investors are locked for 12 months post TGE. Tokens vest linearly for 24 months post the 12 month lock up. # High Level Architecture ## How It Works Fyde is comprised of a single vault of whitelisted assets. In order for the vault to maintain its asset allocation strategy, corresponding concentration limits and target concentrations are specified. Users (depositors, bots, etc.) will be incentivized to bring tokens to their proper weights in the vault, and be disincentivized from pushing token allocations too far from their respective target concentrations. As a result, withdrawing and depositing underweight and overweight tokens, respectively, will result in slippage for the user. Conversely, there won’t be slippage for withdrawals/deposits of overweight/underweight tokens. When the vault needs to rebalance assets to meet its concentration targets, token swaps in desirable directions will offer a reward for arbitrageurs by pricing the assets at a discount to the market. For the user, most of this is abstracted to a single "slippage" parameter. Users can simply select the "Slippage Free" toggle on their token selection window to quickly identify which tokens they can optimally deposit or withdraw.
## Deposit / Withdraw The deposited tokens are priced using oracles, which consists of a combination of a Chainlink price feed along with a UniswapV3 TWAP. These prices are used to price the USD value of the deposit/withdraw to mint/burn an equivalent of $TRSY tokens representing the user’s overall share of the combined holdings of the vault. Users can also withdraw from the vault by burning their $TRSY tokens. Users should keep in mind the potential withdrawal taxes when doing this (e.g. if the user is withdrawing underweight tokens). ## Retaining Governance Rights Users can also choose to retain their governance rights over a particular token. This option is similar to a standard deposit, however, instead of the assets being deposited into the combined holdings of the vault, a separate custodial contract is generated for the user and the tokens are transferred there directly. The proportional value of $TRSY is still minted, but will be automatically staked on the custodial contract as well—issuing the user “staked $TRSY” ($gTRSY) instead. This custodial contract allows the user to retain the governance power of these tokens by giving them the ability to choose a wallet address or a Snapshot space to delegate to. Users should keep in mind that the value of this custodial contract is determined by the amount of $TRSY tokens staked on it, which means that if the corresponding governance token outperforms/underperforms the value of the overall vault, a proportional number of tokens will be moved from/to the contract to be made available for the deposit/withdrawal/swap actions taken by other users. A user can, at any time, withdraw the contents of the their custodial contract directly by burning their $gTRSY. Alternatively, they can unstake their $gTRSY and receive $TRSY. Although this action will permanently give up their governance rights, they will likely be able to access greater market liquidity if they want to trade the $TRSY token. ### Architecture Protocol architecture is composed of four main smart contracts: * [Relayer](/technical-overview/high-level-architecture/relayer): contains the entry points into the protocol for users, as well as the protocol automation logic performed by keepers. * [Fyde](/technical-overview/high-level-architecture/fyde-contract): contains the main logic of the protocol, allowing for depositing, withdrawing, and swapping of assets. * [OracleModule](/technical-overview/high-level-architecture/oracle-module): allows for obtaining on-chain pricing of assets. * [GovernanceModule](/technical-overview/high-level-architecture/governance-module): contains the logic allowing a user to retain governance rights over their assets. # Relayer The role of the relayer is twofold : * It acts as the entry point for users to interact with the protocol through functions such as deposit and withdraw. * It is used for settlement automation in Fyde by monitoring and updating the protocol TVL (denominated in USD). Automation is overseen by external keepers such as the Chainlink automation, Gelato Network, and custom keepers. ## Relayer Functionalities ### Interacting with liquid vault Users call the relayer functions to convey their actions, including parameters such as assets, amounts, governance rights retention, and slippage parameters. ### TVL Monitoring and Protection From Keeper Manipulation Fyde denominate assets value and TVL (Total Value Locked) in USD with on-chain pricing. However, calculating TVL requires iterating through *N* assets, rendering on-chain pricing excessively expensive and unscalable. The keeper’s objective is to ascertain the value of `protocolAUM` through on-chain functions, but as this computation occurs off-chain, the process remains cost-effective. Since the keeper plays a pivotal role by providing essential input for the protocol’s operation (`protocolAUM`), it creates an attack vector. For this reason, we also secure the `protocolAUM` value within the Fyde contract. When the keeper calls the processRequest function, we ensure the input value aligns within a reasonable threshold to thwart manipulation attacks. The protocolAUM value is also monitored by off-chain keepers. Should the off-chain value diverge beyond a specific percentage, the keeper is prompted to update the internal value, ensuring a consistent on-chain protocolAUM. However, the keepers’ actions are limited, and they can only update the protocolAUM within a coherent range to prevent atomic manipulation and draining of the protocol in a single tx. Consequently, even in scenarios where the Gelato Network is compromised or the Fyde keeper’s private key is stolen, the protocol remains safeguarded against immediate, single-transaction manipulation attacks, giving us a window to respond and suspend the protocol. ### Access Control and Roles Relayer inherit access control logic, with the following roles : * User : Currenlty there is no user whitelist basis. However user can be on whitelist basis. * Owner : Can add/remove the roles below (functions are triggered manually, this will be a Gnosis Safe multisig) Following roles can have multiple addresses assigned : * Keeper : Gelato network, Chainlink Automation and Fyde keeper for updatingAUM and processRequest * Guard : Can pause/unpause the protocol and add asset to quarantine list * IncentiveManager : Can set swap incentiveFactor on Fyde {% hint style="info" %} For more informations, see [Roles](/technical-overview/roles) {% endhint %} ![](/files/eC0aEDSHDbCplwG3j6x4) ## Quarantine List To safeguard against potential damages to the vault from tokens that might be subjected to drastic declines in value—often referred to as “falling knife” scenarios (e.g., Terra Luna)—Fyde possesses the capability to quarantine assets, guided by a strategic risk management overlay. When an asset is placed under quarantine, all activities associated with this specific asset, such as deposits, withdrawals, and swaps, are disabled. The management of the quarantine list is managed by the guard role. # Fyde Contract The Fyde contract serves as the core contract of the Fyde protocol. It handles the logic for depositing, withdrawing, and swapping assets within the protocol. Fyde operates as a diversified vault, accepting certain assets, each with a specific target concentration representing the asset’s desired weight in the protocol relative to the Total Value Locked (TVL) in USD. Target concentrations represent the ideal weight of a given asset in the protocol as part of an overarching portfolio management strategy. Users can deposit, withdraw, and swaps these assets in the Fyde protocol. ## Deposit Approved assets can be deposited by users, and upon deposit, $TRSY is minted to the user. Minted $TRSY represents a share of the vault that is proportional to the deposited amount denominated in USD. For instance, if a user deposits 100 TokenA, equivalent to 100k USD, and the TVL is 1 million USD with 500k $TRSY in circulation, the user will receive 50k $TRSY. ## Withdraw Users can withdraw assets by burning their $TRSY tokens. The withdrawal value is computed using mechanisms akin to those used in depositing. For example, if a user holds 50k $TRSY and the TVL is 1 million USD with 500k $TRSY in circulation, the user can withdraw 10% of the index vault, equivalent to 100k USD. ## Slippage Every token in the vault is associated with an ideal concentration, or weight, which is set in order to target specific risk metrics corresponding with each token. Vault actions such as deposits, withdrawals, and swaps can begin to deviate asset concentrations from their target, and as a result, fundamentally change the risk profile of the overall vault. In order to minimize the impact of actions that can negatively impact the health of the vault, slippage will occur on the trade. For instance, deposits altering the concentration towards an overweight position will incur slippage, as will withdrawals from an underweight asset. On the other hand, withdrawals of overweight tokens and deposit of underweight ones will be completely slippage-free. ### Slippage on Deposits An overweight asset can be thought of as a token that has drifted outside of its slippage-free zone. This range is usually centred around the target concentration $$(C\_{i}^0)$$ that is set for each token $$i$$. The upper bound of this range (or the deposit limit) is set by a factor $$(x^{U}*{i})$$ of the target concentration. When an asset passes the limit, slippage will incur on subsequent deposits, proportional to how far above this limit the concentration has moved. The slippage is computed only on the proportion of the deposit made above the limit , where $$D*{i}$$ is the USD value of each individual deposit and $$T\_{D}$$ is the total deposit value.

Breakdown of an overweight token

$$ \begin{equation\*} D^a\_i = \min\left(\max\left(D\_i + T\_{VL}C\_i - x^{U}*iC^0\_i(T*{VL} + T\_D),0\right),D\_i\right)\ . \end{equation\*} $$ Since multiple tokens can be deposited simultaneously, the total slippage amount is computed as a sum of the percent of each deposit made above the upper concentration limit $$D^{a}*{i}$$. This percentage is proportional to how far above the upper limit the deposit is made, up to a maximum percentage $$c^U*{max}$$. $$ \begin{equation\*} T\_{\tau} = \sum\_{i=1}^N D^a\_i \min\left(\dfrac{T\_{VL}C\_i+D\_i}{x^{U}*iC^0\_i(T*{VL} + T\_D)} - 1,c^{U}\_{max}\right)\ . \end{equation\*} $$ ### Slippage on Withdrawals Slippage will similarly occur on withdrawals of underweight tokens. As with deposits, only the proportion of the withdrawal made below the lower limit ($$W\_{i}^b$$) will be impacted by slippage.
$$ \begin{equation\*} W^b\_i = \min\left(\max\left(W\_i - T\_{VL}C\_i + x^{L}*iC^0\_i(T*{VL} - T\_W),0\right),W\_i\right)\ . \end{equation\*} $$ The slippage incurred on each token for multi-token withdrawals is again proportional to far below the concentration limit the withdrawal occurs, up to a maximum percentage $$c^L\_{max}$$. $$ \begin{equation\*} \tau\_i = W^b\_i \min\left(1-\dfrac{T\_{VL}C\_i-W\_i}{x^{L}*iC^0\_i(T*{VL} - T\_W)},c^{L}\_{max}\right) \ . \end{equation\*} $$ # Oracle Module Fyde Protocol operates by allowing users to deposit/withdraw assets by minting/burning $TRSY, and swapping the USD value of one asset for another. To facilitate these functionalities, accurate and current price information for all supported assets is crucial. This is where oracles come into play - providing reliable and real-time price feeds to ensure that the protocol functions accurately and securely. ## Fyde’s Oracle Design Fyde’s design incorporates a blend of Chainlink and Uniswap V3 TWAP (Time-Weighted Average Price) oracles, utilizing a 30-minute time window to fetch price data. This hybrid approach aims to harness the benefits of both Chainlink’s decentralized oracle network and Uniswap V3’s on-chain TWAP oracles to achieve more robust and reliable price feeds. ## Aggregation and Circuit Breakers When the protocol needs to ascertain the value of an asset, it doesn’t rely on a single source (however some assets may have a single source). Instead, it aggregates prices from Chainlink and Uniswap V3 TWAP, enhancing reliability and accuracy. Alongside aggregation, the implementation of circuit breakers adds an extra layer of security. Circuit breakers can halt operations based on predefined conditions, adding robustness against abnormal price movements or possible oracle failures. ## Managing Risks and Asset Whitelisting Recognizing the potential risks associated with on-chain TWAPs, such as susceptibility to attacks and price manipulations, Fyde implements several in-depth risk management strategies. One such strategy is the application of a stringent whitelist criterion, ensuring that only assets meeting specific standards, such as substantial liquidity in Uniswap V3 pools, notable trading volumes and market caps, doxxed founders, etc. are integrated into the protocol. Another strategy involves assessing the historical price performance of a token in comparison to a broad spectrum of crypto tokens over the same timeframe (drilling down to the minute level), ensuring that the token exhibits “normal” price behavior in the moments leading up to it’s deposit into the vault. These precautions aim to mitigate the risks of price manipulations, thereby maintaining the integrity and stability of the Fyde Protocol’s operations. # Governance Module The role of the governance module is to allow depositors to exercise voting rights associated with their deposited governance tokens. This feature is aimed at users with concentrated token holdings who want to benefit from Fyde’s diversification and liquidity while still actively participating in decision making (e.g. founders, delegates, whales, VCs, etc.). Each user of Fyde’s governance module has their own proxy contract which holds the governance token and can vote on their behalf. The amount of governance token a user is entitled to is equivalent to the USD value of their $gTRSY holdings. ## **Governance Functionalities Overview** * **Unstake**: Converts $gTRSY to $TRSY on a 1:1 basis. This action is irreversible and relinquishes voting rights permanently. * **Rebalance**: Adjusts token distribution between proxies and the standard vault to align with the user's vote entitlement. Essential for active governance participants. * **Delegate**: For ERC20Votes tokens, users are allowed to delegate their voting rights to an EOA or multi-sig, bypassing direct Fyde interaction. * **setDelegate/clearDelegate**: Applicable for Snapshot Spaces with SnapshotDelegation. Facilitates off-chain Snapshot voting rights delegation. * **SnapshotVoting**: Enables voting on Snapshot proposals through Fyde, verified off-chain by ERC-1271 standards. ## **Upgradability** * The governance contract is upgradable via a modified beacon proxy pattern, ensuring adaptability with evolving DAO governance. Proxies, which are minimal, retrieve implementation addresses from the governance module. * User proxies handles on-chain voting and Snapshot integration. * Fyde's developers can update the implementation address for future governance enhancements. {% hint style="info" %} User approval is needed for activation on individual proxy {% endhint %} ## **Rebalancing** Holders of $gTRSY-govToken can use voting rights of the underlying governance token, equivalent to the USD value of the $gTRSY. Since the price of $TRSY and a specific governance token fluctuate, the amount of tokens/votes a user is entitled to changes over time. This means tokens need to be redistributed between proxies and the diversified (non-governance) vault. It is the responsibility of the user to trigger the rebalancing of their proxy if they don’t have their full voting rights assigned. Example: User deposits 100 tokenA at a price of 1USD into Fyde and wants to keep governance rights. At the time of deposit the price of $TRSY is 1 USD, so they receive 100 $gTRSY-tokenA. At this time they can use 100 votes for tokenA governance. Over time the price of tokenA stays constant while $TRSY increases to 1.20 USD. Since the USD equivalent of 100 $gTRSY-tokenA is now 120 tokenA, user should call rebalanceProxy in order to get 120 tokenA assigned. If $TRSY then drops to 0.5 USD user would be entitled to 50 tokenA votes, but has 120 assigned. As long as no one else is claiming these tokens, user may keep additional voting rights. If another is underweight and calls rebalanceProxy, tokens will be transferred to them. When rebalancing the tokens are taken from other users that have too many votes or from Fyde’s diversified (non-governance) vault. If due to strong price fluctuations there are temporarily not enough token in the protocol, the amount of token will be distributed to $gTRSY-tokenA holders according to their fair share. # Yield Module The Yield Module allows idle assets in the Liquid Vault to be deployed to third-party protocols to generate yield for $TRSY stakers. The yield module consists of multiple contracts to generate and distribute yield: * **YieldManager**: Main contract for yield functionalities. Deploys assets from Liquid Vault to yield strategies, harvests and distributes yield to $TRSY stakers. * **YieldStrategy**: Implements strategies for yield that assets are deployed to. Upgradable to include new strategies on the market. * **YieldToken**: Token to replace assets deployed to yield in the Liquid Vault in order to keep correct accounting. * **$sTRSY**: tokenised Vault (ERC-4626) for $TRSY that distributes generated yield to stakers via increasing exchange rate of $sTRSY/$TRSY * **RewardsDistributor**: Distributes additional yield in $FYDE token post-TGE to $TRSY stakers depending on market conditions ## **YieldManager functions** The YieldManager is managed by Fyde; therefore all functions can only be called by the owner of the contract. * **createYieldToken**: Deploys a yieldToken for a given underlying asset and registers it in the taxModule and oracleModule which will consider the yieldToken as the underlying asset. * **moveAssetToYieldManager**: Swaps assets that is deployed to yield strategy from the Liquid Vault for the yieldToken. * **moveAssetToLiquidVault**: Swaps assets for yieldToken in the Liquid Vault and burns the received yieldToken. * **depositYieldIntoLiquidVault:** Since yield is generated in several tokens but is distributed in $TRSY this functions deposits yield in the vault to receive $TRSY. * **distributeYieldToStrsy**: Sends $TRSY to the $sTRSY contract where it can be claimed by $sTRSY holders. * **deployToYieldStrategy**: Fallback function that delegates to the YieldStrategy contract which implements specific DeFi integrations to generate yield. ## **YieldStrategy functions** The Yield Module generates yield by integrating with other DeFi protocols. These strategies are implemented in the YieldStrategy contract which is upgradeable to dynamically follow the evolving market. Currently supported strategies: * **Pendle**: Assets can be deposited into Pendle to receive fix yield and/or to provide liquidity for the Pendle AMM and receive swap fees and Pendle rewards.\ *Associated functions*: depositToPendle, withdrawFromPendle, addPendleLPPosition, removePendleLPPposition, approvePendle, redeemPendleLPRewards * **DAI Savings Rate**: Stake DAI stablecoin to receive a fixed percentage yield set by the MakerDAO.\ *Associated functions*: stakeDai, unstakeDai, currentDaiBalance * **EtherFi**: deposit ETH to EtherFi to receive yield-bearing eETH\ *Associated functions*: depositWETHInEtherfi * **1INCH:** DEX aggregator to enter/exit positions at market rate\ *Associated functions*: swapOn1INCH Functions in the YieldStrategy contract are combined to create higher yield. One example is to deposit ETH to receive eETH whose fixed yield component is sold on Pendle. ## **YieldToken functions** The YieldToken takes the place of the underlying asset in the Liquid Vault for as long as it is deployed into a yield strategy. For the Liquid Vault, yieldToken and underlying token are seen as identical so that concentrations and fees are unaffected by assets being deployed for yield. For the Liquid Vault a balance of 100 yieldDAI simply means that 100 DAI are currently active in the yield module. The yieldToken is a purely internal token for accounting purpose, it is created/burned by the yieldManager and can not be transferred outside the protocol. ## **$sTRSY functions** Tokenised yield bearing vault contract (ERC-4626) used to distribute $TRSY yield to $TRSY stakers. Starting at a rate of 1:1 $sTRSY/$TRSY, the generated yield in $TRSY is sent to this contract to increase the exchange rate. Users that stake $TRSY and hold $sTRSY for a duration will receive more $TRSY than they originally staked once they unstake. * **deposit(withPermit)**: deposit given amount of $TRSY to receive corresponding amount of $sTRSY * **mint(withPermit):** receive given amount of $sTRSY by depositing corresponding amount of $TRSY * **withdraw**: receive given amount of $TRSY by burning corresponding amount of $sTRSY * **redeem**: burn given amount of $sTRSY to receive corresponding amount of $TRSY * **updateVestingSchedule**: set time over which yield is paid out to stakers, only callable by Fyde team ## **RewardsDistributor functions** Additional to the yield received in $TRSY, $sTRSY holders receive boosted yield in $FYDE tokens (post-TGE) depending on their share of the total amount of $TRSY staked and a predetermined emission rate. The accrued $FYDE token must be claimed by the user. * **activateFydeEmissions**: must be called by user if they receive $sTRSY via transfer (is automatically activated when user stakes $TRSY themselves) * **claimFydeEmissions**: Transfers accrued $FYDE token to the user and resets their internal balance # Roles ## TL;DR * As with any protocol, it may be necessary to rapidly pause some functionalities, to change some parameters or references in the protocol in order to react rapidly to unforeseen events. * The protocol has a multisig on each of the chains on which it is deployed which has the rights to perform such changes. ## Admin The Fyde Admin is a multisig composed of 6 team members and requires a minimum of 3 signatures to execute a transaction. The Fyde Admin is responsible for parameters tuning, whitelisting new assets, update assets target concentrations, collecting fees and for protocol upgrades and integrations. ## Other roles Addresses with specific roles exist within the Fyde protocol for various reasons. One critical aspect is to address potential issues within the protocol that may have time-sensitive implications or require immediate parameter adjustments. In situations where a flaw is detected in one of the contracts, allowing an attacker to profit, it is imperative that we have the capability to promptly pause the relevant portions of the contract without having to wait for multi-signature execution. * **Guard :** Able to pause/unpause the protocol and quarantine assets. * **Incentive Manager :** Able to change the swapping incentive for rebalancing purposes. * **Keeper :** Update the protocol AUM and process the request (currently we use Gelato). * **User :** Access to deposit and withdraw actions. * **Swapper :** Access to swap functions. * **Exclusive User :** If active, then deactivate the user role. Exclusive User is now the only address with access to deposit and withdraw actions. {% hint style="info" %} Note however that the governance multi-sig can revoke the following roles at any time. {% endhint %} ### # Deployment Address The contracts are deployed on ethereum, you can find the contracts at the following addresses :
ContractAddressAddress
Relayer
0x6830C61dF103946B63C786e63222c59677F32078
Fyde
0x87Cc45fFF5c0933bb6aF6bAe7Fc013b7eC7df2Ee
GovernanceModule
0xc6F50903a058f3807111619bD4B24cA64b8239E1
OracleModule
0x05198327206123E89c24ABd9A482316449bD2aEe
TaxModule
0xf6bcF96f5BaCE0241303eE0819E2E009a7f1Eb40
YieldManager
0xB615A7E4D1Ed426470Ac2Df14F3153fA2DcCC3ba
YieldStrategy
0xa11D02C5Ac034786dEB0A7ad1DfcfACC0E6dE055
YieldToken
0xb3C25A305885681e1105d563B22188121b39f7f8
sTRSY
0xE11DF8c0E9B5697bd31515D0Fc5f4C9BD71566B9
RewardsDistributor
0x19d9d821F6a2ed80A0a9AE06e5b12EDbDd5adf6a
Fyde Multi-Sig
0x24B3B50c1b87B549374876d31f919e5E6eebA999
# Security Audit Fyde have been audited by [Halborn](https://www.halborn.com/) and [Pashov Audit Group](https://www.pashov.net/) you can find the audit reports below. {% file src="/files/tNxOaWyiT0Bu0poVDpCG" %} {% file src="/files/tv1Rm1Zj6kFPED8s3dAV" %} # How To Play ### Objective Beat the market by strategically trading cryptocurrency assets within a limited time frame.
### Game Setup 1. The game starts with a fixed amount of **10,000 USD** assigned to your portfolio and to the market. 2. You'll be presented with a selection of cards representing tokens 3. The market portfolio will randomly assigned a % allocation to each assets while you need to create your portfolio to beat it. ### Gameplay #### 1. Start the Game * Click the "Start Game" button when you're ready to begin.\ ![](/files/4Z4TAfUxAqEWzHHOmf93) * The timer will start counting down from 30 seconds.\ ![](/files/7c5p6PoV99nip39v2bdN) #### 2. Allocate Your Portfolio * You'll see a list of asset cards, each representing a different cryptocurrency.\ ![](/files/4KFoTCN6o03TfkjSYuR8) * Allocate your virtual currency across these assets: * Click the "+" button to increase allocation to an asset. * Click the "-" button to decrease allocation. * Use the "Max" button to allocate all available funds to a single asset. * Click the "x2" to apply a multiplier to the position. #### 3. Monitor the Market * Watch the real-time chart showing your portfolio performance (green line) against the market (purple line).\ ![](/files/Fxks7ufBKVVX3Wd66fZH) * Keep an eye on individual asset performances and their price changes. #### 4. Trade and Adjust * Reallocate your funds between assets as the market changes. * Use the "Shuffle" button to get a new set of asset cards if you're not satisfied with the current selection. This will also reallocate the portfolio #### 5. Use Leverage (Advanced) * Some assets may have a "Leverage" option. * Activating leverage can multiply your gains, but also your losses. * Use leverage cautiously as it increases risk. #### 6. Manage Your Time * Keep an eye on the timer at the top of the screen. * Make quick decisions as the market can change rapidly. #### 7. Game End * The game ends when the timer reaches zero. * Your final portfolio value will be compared to the market's performance. ### Winning the Game * You win if your portfolio value exceeds the market value at the end of the game. * The bigger the difference between your portfolio and the market, the better your performance. ### Tips for Success 1. Pay attention to trends in the price chart. 2. Don't put all your funds into a single asset unless you're confident in its performance. 3. Use the shuffle feature if you're not happy with the available assets. 4. Be cautious with leverage - it can lead to big gains but also significant losses. ### Controls * **+/-**: Increase/decrease allocation to an asset * **Max**: Allocate maximum available funds to an asset * **Dump**: Remove all allocation from an asset * **Shuffle**: Get a new set of asset cards * **Leverage**: Activate leverage on an asset (if available) * **Pause/Play**: Pause or resume the game Remember, the key to success is making quick, informed decisions based on market trends. Good luck, and may the market be in your favor! # Game Market Simulation ## Abstract This document describes the mathematical foundation behind the price generation and market dynamics of the game. The model is inspired by financial markets, using random processes and market factors to simulate the fluctuation of asset prices. The primary mathematical concepts employed include **geometric Brownian motion**, random drift, and volatility, which together form a stochastic process for price generation. We present the formulas and their explanations, followed by a discussion of how these components are combined into a functioning market model. ## 1. Random Data Point Generation The asset prices in the game follow the principles of [**geometric Brownian motion (GBM)**](https://unofficed.com/courses/markov-model-application-of-markov-chain-in-stock-market/lessons/geometric-brownian-motion-gbm-in-stock-market/), which models stock price behavior using the following formula: $$ dS\_t = \mu S\_t dt + \sigma S\_t dW\_t $$ Where: * ( $$dS\_t$$) is the price of the asset at time ( t ), * ( $$\mu$$ ) is the drift as average rate of return over time, * ( $$\sigma$$ ) is the volatility as the randomness or risk in the market, * ( $$dW\_t$$ ) is random component as a Wiener process In discrete time, this becomes: $$ S\_{t+1} = S\_t \cdot e^{(\mu - \frac{1}{2} \sigma^2) \Delta t + \sigma \sqrt{\Delta t} Z} $$ Where: * ( $$Z \sim N(0, 1)$$ ) is a standard normal random variable, * ( $$\Delta t$$ ) is the time step. ## 2. Initial Setup At the beginning of the game, each asset is initialized with random drift and volatility: * **Drift**: A random drift is assigned to each asset, with a 60% probability of a positive trend. * **Volatility**: A random level of volatility is assigned to simulate market risk. Formula for initial drift: $$ \mu = \begin{cases} DRIFT \times (0.5 + \text{rand()}) & \text{if } \text{rand()} < 0.6 \ -DRIFT \times \text{rand()} & \text{otherwise} \end{cases} $$ ## 3. Updating Prices Over Time As the game progresses, prices update based on pre-generated data points, which simulate time evolution. The absolute gain and percentage gain are calculated as: $$ \text{percentageGain}\_t = \frac{\text{New Price} - \text{Previous Price}}{\text{Previous Price}} $$ $$ \text{absoluteGain}\_t = \frac{\text{New Price} - \text{initialPrice}}{\text{initialPrice}} $$ ## 4. Market Influence and Weighted Average The performance of individual assets influences the overall market performance. The market's value is a weighted sum of individual assets' performance, based on their allocation. Let ( $$A\_i$$ ) be the allocation of asset ( $$i$$ ) in the market, and ( $$P\_i(t)$$ ) be the price of asset ( $$i$$ ) at time ( $$t$$ ). Then the market value ( $$M(t)$$ ) is calculated as: $$ M(t) = \sum\_{i} A\_i P\_i(t) $$ The percentage gain for the market is calculated as: $$ \text{Market Percentage Gain} = \frac{M(t) - M(t-1)}{M(t-1)} $$ Where ( $$M(t-1)$$ ) is the market value from the previous period. ## 5. Summary The game uses a simplified **geometric Brownian motion** model to simulate asset prices, where random drift and volatility generate price movements over time. The combined performance of all assets influences the overall market, weighted by asset allocations. The result is a dynamic simulation where prices can rise and fall unpredictably, while still adhering to the underlying mathematical principles of financial markets.