Explaining FixedForex.fi project of Keep3r.network by Andre Cronje
Andre Cronje, founder of Yearn.finance (Yearn is a blue chip DeFi project), has been working on four projects in the past year.
The four projects are keep3r ($KP3R), option liquidity mining, v3 liquidity incentives and FixedForex.fi ($IBFF). Refer to Andre’s article for details, or refer to vKP3R 101 for a quick understanding.
Two of the projects had tokens ($KP3R, $IBFF).
But on Aug 27th, Andre announced all four projects will share the same token $KP3R. (And this is why you should not use TA to analyze price of $KP3R anymore)
This artical tries to explain how FixedForex.fi works.
What does FixedForex do?
FixedForex (FF) is a project to enable people hold their favorite stable coins (currently EUR,AUD,GBP,KRW,JPY,CHF & ZAR).
How does it work?
Roles
ther minter : FixedForex.fi
the issuer: Iron Bank (Iron Bank has several UIs: 1, 2, 3)
the user
How it works?
1/The minter mints ib* assets and deposits all minted assets to the issuer.
2/The user deposits collateral to the issuer. The user borrows ib* assets from the issuer.
3/The user pays back principle and interest.
4/The issuer charges some fees from the interest paid.
5/ The remained interest paid to the minter.
Are ib* assets printed from thin air?
No. When the minter mints and deposits to the issuer, ib* assets are not in circulation, thus needs no collateralization.
When user borrows from the issuer, it is in circulation and collateralized with the user’s collateral. So all circulating ib* assets are collateralized.
Are there any differences from MakerDAO?
Yes.
1/Collateral earns interest on Iron Bank, while not on MakerDAO.
2/There are 7 stablecoins but no USD, while MakerDAO has only USD.
Summary
FixedForex.fi ( the minter) and Iron Bank(the issuer) are basically doing similar things that MakerDAO is doing. The difference is that MakerDAO is issuing USD, while this project issues EUR,JPY,CHF,KRW,GBP and AUD.
