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.
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- Asset Type: ERC-20
- Market Cap: $17.4M
- Fully Diluted Valluation: $17.4M
- FDV / MC: 1
- Ranking inside Exponential (excluding stables): #88
- Circulating Supply: 47,408,309
- Total Supply: 47,408,309
- Volume (24H): $77.2
- ATH: $1.83 (05/09/2024)
- ATL: $0.23 (04/15/2024)
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.
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.
FIDU is a stablecoin that often trades more than 100bps off its peg to , making it a highly volatile store of value.
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.
