Native FNX Yield

For the first time in ve(3,3), Fenix will offer non-inflationary yield for liquidity providers. Powered by 50% of the rebasing yield that Fenix accumulates, Fenix will stream direct WETH and USDB yield to liquidity providers within FNX/WETH and FNX/USDB pools. Our data shows that direct yield incentives can deliver significantly higher multiples of liquidity growth when comapred to comparable increases in emissions. To provide an idea for how this looks, $100M of platform TVL would generate around ~$60,000 of native yield for FNX LPs every epoch. This will result in more consistent and higher demand for FNX, which will allow Fenix to support more liquidity at a lower cost. Increased demand will feed into protocols, whose pool emissions value becomes more stable allowing them to build liquidity more easily, and will drive deeper liquidity for exchange assets, better price execution for traders and more volume for the exchange and partner tokens. Through this novel mechanism, Fenix will deliver signficantly higher multiples of growth for the Blast network.

Last updated