Fidu

FIDU

FIDU is the liquidity provider (LP) token for depositors into the Senior Pool on Goldfinch. The value of FIDU increases over time as interest payments are accrued.

Risk Rating
Watch Out
$0.84
Summary
What we like
FIDU is an interest-bearing asset that provides yield on USD by lending deposits to institutions with off-chain collateral.
What we like less
FIDU can only be redeemed back for USDC when there is sufficient liquidity within the Senior Pool. Otherwise, users will have to wait until new capital enters via borrower repayments or new liquidity providers.
What it means for you
Offers you a simple way to earn a high yield on USD stablecoin, albeit with the risk of your deposits being potentially undercollateralized.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $43.2M
  • Fully Diluted Valluation: $43.2M
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #79
  • Circulating Supply: 51,214,116
  • Total Supply: 51,214,116
  • Volume (24H): $855.7
  • ATH: $1.11 (11/08/2022)
  • ATL: $0.56 (08/08/2023)
Risk Assessment
Watch Out
Asset Strength

FIDU is a low-cap undercollateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of Goldfinch, a protocol rated as Watch out.

FIDU is a stablecoin that often trades more than 100bps off its peg to USD, making it a highly volatile store of value.

Asset Tokenomics

FIDU has an uncapped supply but has inflation control or burn mechanisms in place. FIDU is exposed to death spiral risk as its price depends on another asset, thus creating negative feedback loops.

Asset Volatility

FIDU is a stablecoin that often trades more than 100bps off its peg to , making it a highly volatile store of value.

Dependencies

Goldfinch

Things to know about FIDU

What is FIDU used for?

Users or liquidity providers (LPs) who deposit USDC to the Senior Pool receive an equivalent amount of FIDU in return. FIDU is an ERC-20 token that accrues interest over time (rising exchange rate) as borrowers make interest payments to the Senior Pool. Besides representing a receipt of the LPs deposit into the Senior Pool, it can also be used to earn an additional yield.

How to earn yield with FIDU?

Senior Pool LPs can earn GFI tokens by staking their FIDU on Goldfinch. Further, the staked FIDU can also be deposited in the Curve FIDU-USDC pool to earn additional rewards without needing to unstake from Goldfinch.

How to redeem back for USDC?

LPs can withdraw their position from the Senior Pool at any time by redeeming their FIDU for USDC. The exchange rate is based on the net asset value of the Senior Pool (accrues interest payments over time) minus a 0.5% withdrawal fee. However, more likely than not the Senior Pool may not have sufficient liquidity when LPs try to withdraw as it has already been borrowed (deployed to junior pools). The only way for LPs to redeem their USDC at this point is to wait until new capital enters the Senior Pool either through borrower repayments or new LPs. Alternatively, LPs can go to the Curve FIDU-USDC pool to exchange their FIDU at the prevailing market rate.

FIDU Pools
Curve FIDU-USD Market Making
0.1%
Yield
$586K
TVL
Risk
D
Protocol
Curve
Chain
Ethereum