Podcast Summary
This podcast episode features a discussion with the FX protocol team, Lenow, KT, Krueger, and Ox2, about Convex’s support for the upcoming token for FX protocol, FXN. The team expresses excitement and gratitude for Convex’s support, highlighting the validation it brings to their work. The podcast also covers the ve Locking System, the role of Aladdin Dow in FXN’s governance, and the revenue share aspect for token holders. The team also discusses the future of FX protocol, including the potential for F ofx to become an exchange for various derivatives.
Key Takeaways
Convex’s Support for FXN
- Significance of Convex’s Support: Convex’s decision to support FXN is significant as they are selective in supporting protocols with a ve Locking System. This support validates the work of the FX protocol team and instills confidence in their efforts.
- Role of the ve Locking System: The ve Locking System is primarily used for governance functions, but it can also be utilized for voting on new tokens to integrate into the protocol or boosting features.
- Aladdin Dow’s Stake in FXN: Aladdin Dow has a significant stake in FXN tokens, receiving 30% of the tokens upfront and locking them immediately. This distribution helps ensure Aladdin Dow has a major role in FXN’s governance.
Revenue Share and Tokenomics
- Revenue Share for Token Holders: 75% of the revenue stream generated by FX protocol will be distributed to ve FXN token holders, making the revenue share aspect crucial for token holders.
- ve Tokenomics: The ve tokenomics align governance with the long-term success of the protocol, preventing quick pump and dump scenarios and encouraging long-term decision-making.
Future of FX Protocol
- FX Protocol as an Exchange: The FX protocol team envisions a future where F ofx becomes an exchange for various derivatives, allowing users to mint and redeem tokens without relying solely on decentralized exchanges.
- Liquidity and Governance: Liquidity is an important aspect of governance, and the team has already started supporting secondary liquidity on Curve for both XE and Fe. Liquidity can be adjusted depending on market conditions and can be used as a stability mechanism.
Fe and XE Tokens
- Concept of Fe and XE Tokens: Fe is a stablecoin-like token that moves at 10% of the price movements of ETH, and XE is a leveraged ETH token. The protocol uses staked ETH in a reserve to control the price movements of Fe and assign value to XE.
- Redeemability of Fe and XE Tokens: Both Fe and XE tokens are redeemable for staked ETH from the reserve, with the amount determined by the net asset value.
Expansion of the Reserve
- Expansion to Multiple LSDs: The team is planning to expand the reserve to include more than just stake DE, but they will approach it carefully and evaluate all options.
Sentiment Analysis
- Bullish: The podcast expresses a bullish sentiment towards the future of FX protocol, with the team’s excitement about Convex’s support and the potential for F ofx to become an exchange for various derivatives. The revenue share aspect for token holders and the role of Aladdin Dow in FXN’s governance also contribute to this bullish sentiment.
- Neutral: The podcast maintains a neutral sentiment when discussing the challenges and considerations of expanding the reserve to include more than just stake DE. The team emphasizes the need for careful evaluation and planning.
