💡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.
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.
Last updated
