⭐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).