Cashflow metrics for Fixed Forex
Stablecoins are oxygen in the DeFi ecosystem.
Currently, the largest market cap for a non-USD stable coin is Euro Tether $EURT which only $233MM in USD. At this point, I’d guess there’s only a few billion in non-USD stable coins. It’s still so early.
I’ve closely watched Fixed Forex development since before Andre Cronje launched the project in July 2020. The protocol creates non-USD stable coins, and currently supports EUR, AUD, CHF, GBP, KRW, and JPY. Fixed Forex currently has total value locked (TVL) of $274MM in USD.
If I want to take profits or wait for an investment typically I want to hold my local currency USD. Certainly there are billions of people that would rather hold their own local currencies or at least prefer something other than USD.
If you are new to Fixed Forex, I suggest starting with 0xSato https://linktr.ee/0xSato as understanding how all this works will take time. This is not a project for beginners.
Unlike many other crypto projects, Fixed Forex isn’t calculating APR for locked $KP3R better know as vKP3R holders. The lack of information is one of the initial aspects that delayed my locking of KP3R.
I focus on cashflow and compounding. Cash is generated from swaps and Options Liquidity Mining. Fixed Forex makes bi-weekly payments to vKP3R holders in the form of ibEUR.
How am I calculating this data? The vKP3R amount captured from the contract on the last block of the month. Block number is included. The $KP3R price is that closing price for the month from Coingecko. All other data is from fixedforex.live
The APRs are very rough approximations.
The APR is a function: cashflows and vKP3R, relative to the price the KP3R token. We can see that the APR seems to be settling into about 35% range.
OLM program is generating the vast majority of the fees, but still see a very healthy APR without OLM. This OLM program is limited to 4 years and the emissions of the options rKP3R token will continue to decline linearly.
Are OLM fees scammy? Only capital providers are given these options. The options are not transferrable. The options only provide a 10% discount on the current price of the token. These constraints encourage increased capital inflows in the form of vKP3R and liquidity providing.
OLM is community capital instead of venture capital.
Here’s the spreadsheet.
https://docs.google.com/spreadsheets/d/1-cX_ZowqnhgVrizUNX47PMrbEsYlmwy94sbc5lsUDMg/edit?usp=sharing
In March, I’ll put together projections on platform fees, OLM fees, and APR. They will be massively speculative.
Disclaimer: This is for educational purposes only. This is not investment advice. Past performance is not indicative of future results. Do your own research.
