Alchemix Finance

Proposal

Deposit 1.5k ALCX tokens from the treasury to Fyde protocol.

Context

Fyde is a DeFi protocol designed to upgrade and simplify the crypto treasury and asset management process for DeFi users, enabling long-term and sustainable growth (from their docs). Their app is accessible at https://app.fyde.fi/ and their docs at https://fyde.gitbook.io/ The Fyde team has done a presentation during the Alchemix fireside on the 8th of December.

Essentially, Fyde maintains a basket of bluechip DeFi assets with pre-defined weights. ALCX is part of this basket. Anyone can deposit any of the basket assets and they receive a share of the basket, in the form of the $TRSY token. Fyde also makes it possible for protocols to retain their voting rights of a token that they deposited, if they choose to do so.

The fact that ALCX is part of this basket means that ALCX can be deposited into this pool up to the maximum acceptable share in the basket (5-10% of the total pool), without any price impact to the token.

Fyde is currently running their pre-launch campaign during which 30% of the initial airdrop will be allocated and then in phase 2 they will be allocating another 30% of the initial airdrop as liquidity mining incentives.

This proposal suggests depositing a smaller amount of idle ALCX (1.5k ALCX - $30k) from the treasury to take advantage of the initial airdrop allocation phases, as well as continue using the protocol to earn on the ALCX tokens as long as it remains beneficial.

Fyde succeeding is beneficial for Alchemix, as it supports the ALCX token, and so it would be useful for us to have a smaller ownership stake in the protocol.

The protocol has been audited by Halborn and is run by a public team.

Voting

Voting is single-choice.

1. A yes vote approves the deployment of 1.5k ALCX into Fyde protocol
2. A no vote signals that no funds should be deployed into Fyde protocol
3. Abstain