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Crypto was born with a simple promise: users should own their money, their assets, and their financial ownership.
But somewhere along the way, we lost part of that promise.
Today, trading crypto feels modern, fast, and polished. But, also strangely centralized.
Most trading now happens inside closed platforms with a great UI but very little transparency. And in the process, we drifted away from the openness that originally made DeFi powerful.
This article is not about the mechanics of TheFedz.XYZ or how FStocks and FRWA work.
This is about why we need them and why the entire ecosystem needs a new model for trading, owning, and issuing digital assets on-chain.
Let’s start at the beginning.
If you were here in 2017 or even 2020, trading crypto felt like a frontier.
Everything was open: anyone could mint a token, anyone could provide liquidity, and anyone could build the next financial primitive.
Today, the experience feels very different.
Most users trade on platforms that look like DeFi but operate more like centralized exchanges (CEXs):
They decide how prices move.
They run the risk engine.
They handle liquidations.
They allow or block trading pairs.
Share Dialog
Crypto was born with a simple promise: users should own their money, their assets, and their financial ownership.
But somewhere along the way, we lost part of that promise.
Today, trading crypto feels modern, fast, and polished. But, also strangely centralized.
Most trading now happens inside closed platforms with a great UI but very little transparency. And in the process, we drifted away from the openness that originally made DeFi powerful.
This article is not about the mechanics of TheFedz.XYZ or how FStocks and FRWA work.
This is about why we need them and why the entire ecosystem needs a new model for trading, owning, and issuing digital assets on-chain.
Let’s start at the beginning.
If you were here in 2017 or even 2020, trading crypto felt like a frontier.
Everything was open: anyone could mint a token, anyone could provide liquidity, and anyone could build the next financial primitive.
Today, the experience feels very different.
Most users trade on platforms that look like DeFi but operate more like centralized exchanges (CEXs):
They decide how prices move.
They run the risk engine.
They handle liquidations.
They allow or block trading pairs.
And often, no one outside the protocol can see what’s happening behind the scenes.
The interfaces are beautiful, but the systems underneath are not open.
They’re closed loops designed for speed and efficiency, but not transparency and most important without user ownership.
Crypto became easier to use, but less “crypto” in spirit.
And the biggest example of this shift is the rise of perpetual futures.
Perpetual futures (or “perps”) have become the default trading product in crypto—both on CEXs and DEXs.
Why?
Because they’re fast, familiar, and capital-efficient. They let traders bet long or short on any asset, 24/7, with leverage.
But here’s the truth that most beginners don’t fully realize:
And when you build a system around perps, you inherit everything they come with:
ADLs (Auto-Deleveraging), where your winning position can suddenly be reduced
opaque mark prices and funding rates
internal matching engines
privileged and sometime vague roles managing risk
Even "decentralized" perp platforms copy this logic.
Most of them run internal orderbooks and risk models that users can't audit in real time.
They work terribly for long-term ownership.**
Perps are incredible tools—but they represent only a very small part of the market.
Most people don’t want 20x leverage.
Most people just want asset exposure, the ability to hold value, and the ability to buy or sell without losing 5% to slippage.
The crypto industry optimized for the wrong group.
It optimized for speed traders, not the everyday user.
So what about the alternatives?
Automated Market Makers (AMMs) changed everything when they appeared.
Uniswap allowed anyone, not just institutions, to participate.
Anyone could create a token, start a market, or trade without asking for permission.
There was no orderbook, no matching engine, no gatekeeping.
It was a revolution.
For the first time, markets belonged to the users.
But revolutions don’t stay perfect forever.
Over time, we discovered that the AMM model has two deep structural problems:
LPs systematically lose value just by doing their job, rebalancing as prices move.
Even in a healthy market, even without hacks or bad trades, LPs slowly bleed compared to simply holding the assets.
That is already a serious limitation.
While AMMs were built to be open markets, the blockchain environment introduced something they were never designed to withstand:
MEV (Maximal Extractable Value).
MEV bots sit between every user and the pool.
They reorder transactions, front-run trades, sandwich users, and extract value from LPs every time prices shift.
It works like this:
You try to trade → a bot sees you first
It jumps ahead of you, buys before you, sells after you
You get worse execution
LPs get worse returns
The bot pockets the difference
This is not a bug.
This is a structural property of how public blockchains and AMMs interact.
As a result:
AMMs became predictable targets for MEV extraction.
Every rebalance becomes an opportunity for arbitrage bots.
Every price move becomes a transfer of wealth—from LPs to sophisticated actors.
The outcome is simple:
LPs earn less
Liquidity thins out
Spreads widen
Operating deep markets becomes expensive
And because the problem is structural, not technical, upgrades and new versions haven’t solved it.
AMMs are still the most open, permissionless trading model in crypto.
They represent the spirit of DeFi better than anything else.
But mathematically and economically, they’re stuck.
They cannot provide the depth, stability, and efficiency needed for high-volume assets like tokenized stocks, at least not in the Arbitragers VS LPs zero sum game.
Without solving MEV and LVR, AMMs cannot become the foundation for the next generation of tokenized markets.
So where else can we look?
One of the biggest ideas in crypto is tokenization:
taking real-world assets and turning them into on-chain tokens.
Stablecoins proved that this works.
USDC and USDT created a new world of digital dollars and became the backbone of everything we do in DeFi.
But the model has limits.
To issue $1B of stablecoins or tokenized stocks, you need $1B sitting in a bank or custodian.
That works for dollars because the issuer earns interest on the collateral.
But for stocks?
For commodities?
For anything else?
It's impractical.
No issuer will lock billions of dollars to issue tokenized versions of hundreds of different assets.
That’s why on-chain stocks today are tiny markets:
extremely low supply
massive slippage
no liquidity
no real trading experience
Tokenization is a massive idea stuck behind an economic wall.
1:1-backed assets are centralized.
They can be frozen, paused, censored, or confiscated.
So while tokenization shows us the future, the current model cannot bring that future to life.
To unlock global tokenized markets, we need a structure that is:
more decentralized
more affordable
more scalable
more open
We need a model designed for tokens—not copied from traditional finance.
Perpetuals copy centralized trading.
Stablecoins copy traditional banking.
AMMs copy automated exchange engines.
But where is the system actually designed around tokens themselves?
Where is the model that says:
tokens should be cheap to issue
tokens should be easy to trade
tokens should be held directly by users
tokens should have predictable liquidity
tokens should not require billions of dollars to exist
tokens should not rely on centralized custodians
The answer is:
We haven’t built that model yet.
Crypto still operates with financial structures imported from the old world.
That’s why fragmentation, poor liquidity, and limited asset supply keep holding the industry back.
If we truly “love the token,” then the entire market structure must be built for the token—not around legacy financial logic.
And that leads us to the next step.
To build an open and scalable token economy, we need a model that:
allows users to self-custody assets
supports minting without full 1:1 collateral
creates liquidity that grows with usage
aligns long-term stability with affordability
works for traders and holders
remains fully on-chain and transparent
In other words:
This is the design philosophy behind The Fedz.
The Fedz does not try to replicate traditional finance.
It tries to rethink it.
It asks a simple question:
What if tokens didn’t need full collateral to exist, only well-designed, transparent, on-chain rules?
That’s not science fiction.
It’s the foundation of fractional-reserve systems, bank-run research, and modern monetary design.
And when you apply this thinking to tokenized markets—you unlock something powerful.
FStocks are not just “tokenized stocks.”
They are a new class of digital assets designed for:
real liquidity
on-chain transparency
affordability
long-term user ownership
They don’t require 1:1 collateral.
They don’t rely on a centralized issuer.
They don’t depend on high-frequency traders to keep markets alive.
They’re built around a completely different idea:
This is why The Fedz focuses so much on:
fractional-reserve minting
private liquidity pools
sequential access
FUSD as the base money
transparent on-chain balance sheets
These pieces work together to create a system where:
tokens can be issued sustainably
liquidity is predictable
users stay in control
prices remain stable in the long term
and access is open to everyone
It is a token-native framework for token-native markets.
Crypto's next evolution isn't another perp exchange.
It’s not a shinier UI.
It’s not another centralized “DEX.”
And it’s not another overly expensive 1:1 tokenization initiative.
Users should own their assets.
Markets should be open.
Tokens should be affordable and accessible.
To get there, the industry needs a new architecture, one designed for tokens as they truly exist on-chain.
The Fedz is building exactly that.
We’re not just building a new product.
We’re building a new model.
A structure where users can hold, mint, and trade real assets in a way that is:
decentralized
economically efficient
and scalable to millions of users
Because at the end of the day…
We love the token.
We want the token.
And it’s time the market is redesigned around that simple truth.
And often, no one outside the protocol can see what’s happening behind the scenes.
The interfaces are beautiful, but the systems underneath are not open.
They’re closed loops designed for speed and efficiency, but not transparency and most important without user ownership.
Crypto became easier to use, but less “crypto” in spirit.
And the biggest example of this shift is the rise of perpetual futures.
Perpetual futures (or “perps”) have become the default trading product in crypto—both on CEXs and DEXs.
Why?
Because they’re fast, familiar, and capital-efficient. They let traders bet long or short on any asset, 24/7, with leverage.
But here’s the truth that most beginners don’t fully realize:
And when you build a system around perps, you inherit everything they come with:
ADLs (Auto-Deleveraging), where your winning position can suddenly be reduced
opaque mark prices and funding rates
internal matching engines
privileged and sometime vague roles managing risk
Even "decentralized" perp platforms copy this logic.
Most of them run internal orderbooks and risk models that users can't audit in real time.
They work terribly for long-term ownership.**
Perps are incredible tools—but they represent only a very small part of the market.
Most people don’t want 20x leverage.
Most people just want asset exposure, the ability to hold value, and the ability to buy or sell without losing 5% to slippage.
The crypto industry optimized for the wrong group.
It optimized for speed traders, not the everyday user.
So what about the alternatives?
Automated Market Makers (AMMs) changed everything when they appeared.
Uniswap allowed anyone, not just institutions, to participate.
Anyone could create a token, start a market, or trade without asking for permission.
There was no orderbook, no matching engine, no gatekeeping.
It was a revolution.
For the first time, markets belonged to the users.
But revolutions don’t stay perfect forever.
Over time, we discovered that the AMM model has two deep structural problems:
LPs systematically lose value just by doing their job, rebalancing as prices move.
Even in a healthy market, even without hacks or bad trades, LPs slowly bleed compared to simply holding the assets.
That is already a serious limitation.
While AMMs were built to be open markets, the blockchain environment introduced something they were never designed to withstand:
MEV (Maximal Extractable Value).
MEV bots sit between every user and the pool.
They reorder transactions, front-run trades, sandwich users, and extract value from LPs every time prices shift.
It works like this:
You try to trade → a bot sees you first
It jumps ahead of you, buys before you, sells after you
You get worse execution
LPs get worse returns
The bot pockets the difference
This is not a bug.
This is a structural property of how public blockchains and AMMs interact.
As a result:
AMMs became predictable targets for MEV extraction.
Every rebalance becomes an opportunity for arbitrage bots.
Every price move becomes a transfer of wealth—from LPs to sophisticated actors.
The outcome is simple:
LPs earn less
Liquidity thins out
Spreads widen
Operating deep markets becomes expensive
And because the problem is structural, not technical, upgrades and new versions haven’t solved it.
AMMs are still the most open, permissionless trading model in crypto.
They represent the spirit of DeFi better than anything else.
But mathematically and economically, they’re stuck.
They cannot provide the depth, stability, and efficiency needed for high-volume assets like tokenized stocks, at least not in the Arbitragers VS LPs zero sum game.
Without solving MEV and LVR, AMMs cannot become the foundation for the next generation of tokenized markets.
So where else can we look?
One of the biggest ideas in crypto is tokenization:
taking real-world assets and turning them into on-chain tokens.
Stablecoins proved that this works.
USDC and USDT created a new world of digital dollars and became the backbone of everything we do in DeFi.
But the model has limits.
To issue $1B of stablecoins or tokenized stocks, you need $1B sitting in a bank or custodian.
That works for dollars because the issuer earns interest on the collateral.
But for stocks?
For commodities?
For anything else?
It's impractical.
No issuer will lock billions of dollars to issue tokenized versions of hundreds of different assets.
That’s why on-chain stocks today are tiny markets:
extremely low supply
massive slippage
no liquidity
no real trading experience
Tokenization is a massive idea stuck behind an economic wall.
1:1-backed assets are centralized.
They can be frozen, paused, censored, or confiscated.
So while tokenization shows us the future, the current model cannot bring that future to life.
To unlock global tokenized markets, we need a structure that is:
more decentralized
more affordable
more scalable
more open
We need a model designed for tokens—not copied from traditional finance.
Perpetuals copy centralized trading.
Stablecoins copy traditional banking.
AMMs copy automated exchange engines.
But where is the system actually designed around tokens themselves?
Where is the model that says:
tokens should be cheap to issue
tokens should be easy to trade
tokens should be held directly by users
tokens should have predictable liquidity
tokens should not require billions of dollars to exist
tokens should not rely on centralized custodians
The answer is:
We haven’t built that model yet.
Crypto still operates with financial structures imported from the old world.
That’s why fragmentation, poor liquidity, and limited asset supply keep holding the industry back.
If we truly “love the token,” then the entire market structure must be built for the token—not around legacy financial logic.
And that leads us to the next step.
To build an open and scalable token economy, we need a model that:
allows users to self-custody assets
supports minting without full 1:1 collateral
creates liquidity that grows with usage
aligns long-term stability with affordability
works for traders and holders
remains fully on-chain and transparent
In other words:
This is the design philosophy behind The Fedz.
The Fedz does not try to replicate traditional finance.
It tries to rethink it.
It asks a simple question:
What if tokens didn’t need full collateral to exist, only well-designed, transparent, on-chain rules?
That’s not science fiction.
It’s the foundation of fractional-reserve systems, bank-run research, and modern monetary design.
And when you apply this thinking to tokenized markets—you unlock something powerful.
FStocks are not just “tokenized stocks.”
They are a new class of digital assets designed for:
real liquidity
on-chain transparency
affordability
long-term user ownership
They don’t require 1:1 collateral.
They don’t rely on a centralized issuer.
They don’t depend on high-frequency traders to keep markets alive.
They’re built around a completely different idea:
This is why The Fedz focuses so much on:
fractional-reserve minting
private liquidity pools
sequential access
FUSD as the base money
transparent on-chain balance sheets
These pieces work together to create a system where:
tokens can be issued sustainably
liquidity is predictable
users stay in control
prices remain stable in the long term
and access is open to everyone
It is a token-native framework for token-native markets.
Crypto's next evolution isn't another perp exchange.
It’s not a shinier UI.
It’s not another centralized “DEX.”
And it’s not another overly expensive 1:1 tokenization initiative.
Users should own their assets.
Markets should be open.
Tokens should be affordable and accessible.
To get there, the industry needs a new architecture, one designed for tokens as they truly exist on-chain.
The Fedz is building exactly that.
We’re not just building a new product.
We’re building a new model.
A structure where users can hold, mint, and trade real assets in a way that is:
decentralized
economically efficient
and scalable to millions of users
Because at the end of the day…
We love the token.
We want the token.
And it’s time the market is redesigned around that simple truth.
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