fxUSD Seeding Event: The Race to 500 ETH!

The day we have all been waiting for is finally here…it is time to wave the green flag to start the race to mint fxUSD! In order to have a smooth and successful launch, we first have to make sure our fxUSD racers have enough fuel to make it to the pole position, which is why we are kicking off with a seeding event!

The seeding event is designed to ensure that the LSD vaults have enough reserves to be able to mint and redeem fxUSD and the associated x-tokens with ease at the moment the protocol goes live. Here are the basics on the seeding event:

• For the Lido stable-leverage pair, users can deposit stETH or zap in with ETH, USDT, or USDC
• For the Frax stable-leverage pair, users can deposit frxETH or zap in with ETH, USDT, or USDC
• Any deposits to either vault will go towards minting a 50:50 ratio of stable & leverage tokens for that vault…and no mint fees apply! 🙂
• Once the first seed vault hits our launching threshold of 500 ETH, fxUSD will go fully live, and anyone will then be able to mint/redeem whichever tokens they want!
• The seed event will continue for a week after fxUSD is initialized.

The best part? The seed vaults have each been incentivized with $10,000 worth of tokens by both of our launch partners Lido and Frax…along with $10,000 in FXN tokens for each vault! By depositing into each of the vaults, users will respectively earn wstETH, FXS, and FXN tokens. The rewards will be distributed at the end of the seeding event, and user’s rewards are calculated with the following criteria:

• 50% of the seeding rewards will be determined from: (Users TVL) * (Total time in the seed vault during the event)
• 50% of the seeding rewards will be allocated proportionally to users who keep their deposits in the seeding event until the very end.

TL;DR on the rewards — The longer you keep your deposit in the seed vault, and keep it there until the end of the seeding event, the more rewards you can earn!

A few additional details that you will want to be mindful of before the event starts:

• Users can withdraw their funds from the event at any time in the form of the vault base token: wstETH or sfrxETH. The standard f(x) redeem fees will apply (0.25% for stable tokens and 1.0% for leverage tokens). After the seeding event has ended, users can withdraw from the seed vault to either the base token, wstETH or sfrxETH, or the 50/50 f & x token combination.
• The deposits will be kept in the seed vault until the end of the event, which will overlap with the initialization of fxUSD for approximately a week to ensure system stability. Once the seed event ends, rebalance pools and their yields will become accessible to seed participants.
• ADVISORY NOTICE: Please be aware that while your funds are deposited in the seed vaults, the collateral ratio (CR) may change after the system has been initialized. This will affect the value of your deposited ETH position, which means your deposit may gain or lose value during the course of the seed event. Please exercise caution should you wish to withdraw your tokens from the seed vault after the system has been initialized!

If you have any further questions regarding the seeding event, please feel free to visit the AladdinDAO discord or follow us on twitter. Time to get your tires warmed up and your tokens ready as we make the final pace lap to start the race for fxUSD!