At The Fedz, we're committed to revolutionizing DeFi by ensuring our stablecoin, $FUSD, remains resilient and stable. Central to this goal is our unique sequential access mechanism, known as Turns and Rounds, which mitigates bank runs by organizing liquidity access in an orderly, ordered manner.Understanding Turns and Rounds: Our Sequential Access MechanismIn our ecosystem, liquidity is accessed sequentially by participants who hold exclusive Fedz NFTs. Each round consists of multiple turns, ...

At The Fedz, we're committed to revolutionizing DeFi by ensuring our stablecoin, $FUSD, remains resilient and stable. Central to this goal is our unique sequential access mechanism, known as Turns and Rounds, which mitigates bank runs by organizing liquidity access in an orderly, ordered manner.Understanding Turns and Rounds: Our Sequential Access MechanismIn our ecosystem, liquidity is accessed sequentially by participants who hold exclusive Fedz NFTs. Each round consists of multiple turns, ...

MakerDAO’s Vault Model – A DeFi Revolution BeginsIn 2017, MakerDAO launched Dai, the first decentralized, crypto-collateralized stablecoin, and with it, the concept of the vault (formerly CDP, or Collateralized Debt Position) was born. This model was nothing short of revolutionary. For the first time, anyone could lock crypto assets (like ETH) in a smart contract “vault” and mint a stablecoin (Dai) against it without any central authority. MakerDAO proved that a trustless, overcollateralized ...

MakerDAO’s Vault Model – A DeFi Revolution BeginsIn 2017, MakerDAO launched Dai, the first decentralized, crypto-collateralized stablecoin, and with it, the concept of the vault (formerly CDP, or Collateralized Debt Position) was born. This model was nothing short of revolutionary. For the first time, anyone could lock crypto assets (like ETH) in a smart contract “vault” and mint a stablecoin (Dai) against it without any central authority. MakerDAO proved that a trustless, overcollateralized ...

Introduction: A New Era of Decentralized Monetary PolicyTraditional central banks, like the U.S. Federal Reserve, have long been the guardians of monetary stability. Their tools involved setting interest rates, controlling the money supply, and acting as lenders of last resort. In decentralized finance (DeFi), projects are beginning to mirror these roles in innovative ways. MakerDAO’s CDPs¹ (Collateralized Debt Positions) were an early example, allowing users to generate a stablecoin (DAI) by...

Introduction: A New Era of Decentralized Monetary PolicyTraditional central banks, like the U.S. Federal Reserve, have long been the guardians of monetary stability. Their tools involved setting interest rates, controlling the money supply, and acting as lenders of last resort. In decentralized finance (DeFi), projects are beginning to mirror these roles in innovative ways. MakerDAO’s CDPs¹ (Collateralized Debt Positions) were an early example, allowing users to generate a stablecoin (DAI) by...

IntroductionAutomated Market Makers (AMMs) have revolutionized decentralized finance (DeFi), yet Liquidity Providers (LPs) often face concerns regarding Loss-Versus-Rebalancing (LVR). Research, including studies by Ciamac Moallemi and others, frames LVR as a problem, suggesting that passive LPs consistently underperform compared to active trading strategies. However, in The Fedz ecosystem, LP passivity is not a bug but a feature.The Traditional View: LVR as an LP InefficiencyLVR research high...

IntroductionAutomated Market Makers (AMMs) have revolutionized decentralized finance (DeFi), yet Liquidity Providers (LPs) often face concerns regarding Loss-Versus-Rebalancing (LVR). Research, including studies by Ciamac Moallemi and others, frames LVR as a problem, suggesting that passive LPs consistently underperform compared to active trading strategies. However, in The Fedz ecosystem, LP passivity is not a bug but a feature.The Traditional View: LVR as an LP InefficiencyLVR research high...

The doors were shut. The air was thick with tension. The room? A high-stakes gathering of the most powerful bankers in America was called into an emergency meeting by then-Fed Chair Ben Bernanke and Treasury Secretary Hank Paulson. The message was clear: The global financial system was on the brink of collapse. Banks were failing left and right. Lehman Brothers had just gone under. Credit markets had frozen. No one knew who would be next. The word "liquidity" was suddenly on everyone’s lips—b...

The doors were shut. The air was thick with tension. The room? A high-stakes gathering of the most powerful bankers in America was called into an emergency meeting by then-Fed Chair Ben Bernanke and Treasury Secretary Hank Paulson. The message was clear: The global financial system was on the brink of collapse. Banks were failing left and right. Lehman Brothers had just gone under. Credit markets had frozen. No one knew who would be next. The word "liquidity" was suddenly on everyone’s lips—b...

1. Introduction: The Paradox of PanicIn September 2008, customers lined up outside Washington Mutual branches, desperate to withdraw their savings. Rumors of the bank’s insolvency spread rapidly, fueled by news headlines and nervous chatter. By the end of the month, the bank collapsed—the most significant failure in U.S. banking history. Yet, paradoxically, much of the panic was driven not by actual insolvency at first but by the expectation of it. This phenomenon isn’t new. During the Great ...

1. Introduction: The Paradox of PanicIn September 2008, customers lined up outside Washington Mutual branches, desperate to withdraw their savings. Rumors of the bank’s insolvency spread rapidly, fueled by news headlines and nervous chatter. By the end of the month, the bank collapsed—the most significant failure in U.S. banking history. Yet, paradoxically, much of the panic was driven not by actual insolvency at first but by the expectation of it. This phenomenon isn’t new. During the Great ...

In the rapidly evolving world of decentralized finance, innovation often pushes the boundaries of what's possible. However, there is one area where we have yet to see meaningful diversification: leveraged liquidity. Today, most DeFi protocols operate with a single mechanism: liquidation. The Fedz, however, introduces an alternative that draws inspiration from traditional finance: the decentralized bailout. This shift can redefine how we think about risk, resilience, and growth in DeFi.The One...

In the rapidly evolving world of decentralized finance, innovation often pushes the boundaries of what's possible. However, there is one area where we have yet to see meaningful diversification: leveraged liquidity. Today, most DeFi protocols operate with a single mechanism: liquidation. The Fedz, however, introduces an alternative that draws inspiration from traditional finance: the decentralized bailout. This shift can redefine how we think about risk, resilience, and growth in DeFi.The One...

Reflecting on Our Message As the founder of The Fedz, I've always been passionate about innovating within the decentralized finance space. Our protocol's core technology, Bank-Run Mitigation, offers a groundbreaking solution for enhancing financial stability. However, I recently realized that communicating this complex concept effectively was more challenging than anticipated. When I spoke with fellow DeFi enthusiasts and "degenerates" (degens), my explanations often veered into technical det...

Reflecting on Our Message As the founder of The Fedz, I've always been passionate about innovating within the decentralized finance space. Our protocol's core technology, Bank-Run Mitigation, offers a groundbreaking solution for enhancing financial stability. However, I recently realized that communicating this complex concept effectively was more challenging than anticipated. When I spoke with fellow DeFi enthusiasts and "degenerates" (degens), my explanations often veered into technical det...

At The Fedz, we take small, careful steps forward, guided by research and a clear understanding of the problems others have faced in this space. We are charting a new course by building upon foundational theories such as bank run theory, game theory, macroeconomic research, and insights from various scientific disciplines. Yet, our implementation is innovative and untested, requiring humility, caution, and a clear-eyed recognition of the risks inherent in financial systems.The Nature of Finan...

At The Fedz, we take small, careful steps forward, guided by research and a clear understanding of the problems others have faced in this space. We are charting a new course by building upon foundational theories such as bank run theory, game theory, macroeconomic research, and insights from various scientific disciplines. Yet, our implementation is innovative and untested, requiring humility, caution, and a clear-eyed recognition of the risks inherent in financial systems.The Nature of Finan...

The Fedz is inspired by the principles of the traditional banking system and adapts its essence to the Web3 metaverse. As traditional banks facilitated economic growth through fractional banking and monetary policy, the Fedz brings this foundational concept into crypto. However, the difference is not merely in the service or product we provide - it's in who we provide it for.A Brief Dive into Traditional Banking System Traditional banking systems, spearheaded by central banks like the Federal...

The Fedz is inspired by the principles of the traditional banking system and adapts its essence to the Web3 metaverse. As traditional banks facilitated economic growth through fractional banking and monetary policy, the Fedz brings this foundational concept into crypto. However, the difference is not merely in the service or product we provide - it's in who we provide it for.A Brief Dive into Traditional Banking System Traditional banking systems, spearheaded by central banks like the Federal...