Flash Talk : Points are dead: Long live organic stable yield

Thank you very much. Good morning everyone. So yeah, I'm Siril for F ofX Protocol and I'm very happy today to announce that points are dead. Long live organic stable yield. So he who lives by the crystal ball will eat shadowed glass.

Uh why am I quoting uh Red Alio today with that uh crystal ball quote is that because betting on points mechanism is just like reading a crystal ball. you basically trust the project to deliver the points and to ex exchange them with the token and you you're betting on the token TG as well while you could get uh very competitive organic yields instead. But why are there so many points program? The reason is very simple. If you look at the stable coin market which makes ATH after we've seen earlier today, most of them are centralized.

Actually 99.7% are centralized and 80% of all stable coins are real world asset backed. So that means there is more and more newcomers to the market. The market is growing and everyone is pretty much doing the same thing which is tokenizing T bills basically and hoping for people to choose their solution. So basically they offer higher risks by putting TBS on chain with the same rewards.

So they probably won't all make it. And at the same time in a blue ocean there's FX save which is the main stable strategy of FX protocol. If you look at that beautiful orange line on the screen uh you can see the evolution of FX over time. Uh that's uh the dashboard from stable yield.info comparing all the different yield bearing stable strategies in DeFi.

And you can see that FXA not not only stayed above most of the other yield bearing strategies, but it's been very steady over time. And the beauty in FXA is that the yield is 100% organic and sustainable. Let me dive a little deeper. So, as I said, FXA is the main yield strategy of FX protocol. It's powered by USDC and FXUSD.

And FXUSD is FX decentralized stable coin. It's 100% onchain. It's collateralized by wrap stake e and wrap bitcoin only and it's uh over collateralized while being very efficient and having a perfect peg by design. There's already 12 audits made on FX only and a 13th one is being made by open zipline currently. And as I said the beauty in FX save is that all the yield is purely organic and sustainable generated by the protocol's economics activity.

That means we offer not only fewer risks, your lower risk, but also better rewards. So you can just do the math to compare with all the other guys doing exactly the same thing and printing a token out of thin hair. So I told you uh the yield is generated organically. Uh to understand how we generate that yield, I have to explain the offer the other offering of of FOX which is the expositions. X positions are a new way to take leverage on ETH and BTC.

Uh and you can get up to 7x leverage uh on ETH directional leverage on ETH and BTC while getting a very uh small liquidation risk or at least uh very small liquidation impact and paying just a onetime fee. There's no boring cost, no funding cost. Uh you just pay a one-time opening and closing fee and that's it. That brings predictability to your position. So there's no stress or fewer stress than other leverage solutions and no surprises because you know exactly what you're going to pay.

And again just like FXUSD, it's 100% onchain and trustless. So expositions have been running for the past uh six months now. So we released the current version of the protocol early January 25 and very happy today to announce the S positions which will be released in the uh following weeks. So we'll offer the same features as the expositions which means just a onetime fee and no hard liquidation but shorting if and BTC. So let me explain quickly how exposition works.

You can see exposition adds some kind of a new generation CDP model that abstracts the looping by uh doing a flash loan. So let's say you want to get 5x leverage on if you only have $200. The protocol will flash borrow the 800 missing ski, put them in the reserve as collateral and be able to open your exposition worth $200, repay the flash loan by minting $800 of FXUSD and now you have your your $200 expositions getting the exposure of the whole collateral. So that's pretty regular CDP looping model except that we uh offer that what one-time fee feature and liquidation protection mechanism. For the S positions, it's uh slightly different.

Um let's say you want to short ETH with 5x. Again, you only have $200. This time you will put $200 of FXUSD into the reserve and the protocol will need to flash borrow $1,000 of Steve. We'll borrow this the thousand dollars of Steiff and instantly sell them for FXUSD, thus creating the short position. We add the FXUSD to the reserve and the protocol is able to open your $200 worth short position and to repay the flash loan by taking $1,000 of Steve backing FXUSD from the X position reserve.

And this is how we create your short position. So now let's imagine that if price decreases by 10% at that moment the value of your debt decreased by 10% as well which is just $900 of Steve to repay and you can use the reserve to repay your position there's creating a $100 profit 50% profit with a 10% decrease in price that's a 5x leverage so a quick word on the road map because I just have a minute left so we will release short positions um in a matter of days now. So, we just released the white paper. Make sure you read it. It's it's on uh X uh the X account on F of F ofX.

I'll share uh a a flash code in a couple of seconds. We will release limit order and stop losses. Both of these feature will bring even more fees uh to the protocol and thus to the stable strategy because that's what we're talking about here decentralized stable and sustainable yields because with shorts we will not only collect yields when people leverage long but also when people will short the market. So we collect yield in all market conditions and we'll also u deliver the FX mint feature which is a more uh CDP interface that will people uh will let people get capital efficiency on their ETH and BTC or even get killed on their BTCs by simply borrowing FX safe with just a onetime fee and liquidation protection mechanism. If you want to learn more, feel free to scan this QR code or just uh come say hi because we'll stick around for the rest of the day.

Thank you very much for listening. FX protocol, trademark, earn more, sleep well. Thank you very much. [Applause]