🤦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.