Author(s): @artivilla, @danner.eth, @raphbaph
Project Name: True Freeze
Project Type: Protocol
Project Description:
An ecosystem for tokenizing patience. Users turn their blockchain native asset (e.g., ETH* on Ethereum) into a Certificate of Deposit “Freezer” NFT. They receive frETH (freezer-ETH*) as the yield token for doing this. The farther in the future they set the CD’s maturity date, the more frETH they earn. But withdrawing too soon may cost more frETH than originally minted.
The NFT is buyable/sellable/transferrable on any NFT marketplace. This offers a unique mechanism for large and/or standardized denominations of amounts of ETH to be traded at 0 price impact and 0 slippage (This “decentralized OTC” desk avoids AMM xy=k curves & maker/taker fees in an order book).
After the maturity date, Freezers can be redeemed for their par value in ETH at 0 cost.
Prior to the maturity date, it costs both X frETH and 0.25% of the ETH in early withdrawal fees to redeem the NFT. X is a function of the time left to maturity and the amount of frETH originally minted when the NFT was made.
Early withdrawal fees are paid to FRZ stakers.
FRZ is inflationary on a set inflation schedule.
This inflationary FRZ design dilutes value of existing holders and transfers it to those who burn frETH. By burning frETH, you earn a proportional amount of FRZ in perpetuity. This keeps the engine of the protocol functioning for decades, and opens up “Curve War” style strategies to continuously earn and burn to retain a consistent % of the revenue flow.
The result of all this is bringing the $120 Trillion global bond market on chain, allowing institutions, bots, whales, and others to buy Freezer NFTs at discounted rates using various zero coupon bond pricing models. At the same time, users holding ETH raw now have a mechanism to earn a small amount of yield for confirming their long-term savings as out of circulation, and they can easily transfer the NFT to a cold wallet for safe keeping, while knowing True Freeze explicitly does not expose their deposit to contract migration or smart contract risks (i.e., we don’t forward the ETH to Yearn or other protocol for yield).
The closest thing to cold storage we can get, but with yield.
- ETH on Ethereum, MATIC on Polygon, FTM on Fantom, AVAX on Avalanche, BNB on Binance. Each instance of True Freeze is entirely unique, as differences in chain architecture leads to different prices for assets and cost functions for withdrawals (accounting for gas).
Relevant Links:
Notes from Grants Fit Evaluation:
Charliemarketplace.eth came across as truly genuine and with a deep interest in maximizing mutual benefit. He would give these tokens with the intent that they would be distributed as widely as possible and to the maximum benefit of MetricsDAO, even if it doesn’t directly benefit TrueFreeze.
Charliemarketplace.eth is open to the analytics developed, but sees these tasks as the most urgent deliverables for the collaboration:
- Airdrop analytics
- Number of tokens claimed
- Whales
- Tokens immediately sold and by whom
- Holding time of tokens
Second in line are these analytics:
- Number of freezers made
- Freezers redeemed per day
- Penalty fees paid
It would be preferred if the results could be streamed to their website. Any data providers can be used.
This partnership would enrich MetricsDAO in multiple ways:
- Deep collaboration with CharlieDAO, including fluid movement of developers from CharlieDAO to MetricsDAO, and new opportunities for MetricsDAO members.
MetricsDAO has a better grasp of parceling out tasks and on education, while CharlieDAO focuses on building immutable primitives for the blockchain world. - FRZ and the Freeze cycle offer an interesting way to diversify the MetricsDAO treasury, a knowledge that could be a valuable asset in its own right. (see LamaDAO)
- MetricsDAO could position itself as a good partner for token launches and receive similar grants from other projects.
Importantly, Charlie noted that the FRZ could be used for any services of the DAO, to incentivize any behaviors or utility, not just execution for TrueFreeze. He sees this as a way to enable service DAO success and a contribution to the overall ecosystem.
MetricsDAO Deliverables Sought:
- Organized On-Demand Analytics Delivery
- Scavenger Hunts
Partner Objectives:
- Air Drop Analytics
- Co-Marketing
- Community
- Exchange of Developers and Analysts between MetricsDAO and CharlieDAO
Willing to Grant:
1,000,000 - 2,000,000 FRZ tokens (1-2% of initial supply prior to inflation schedule)
Suggested Timeline:
Determine fit: March 31, 2022
Agree to grant structure: April 3, 2022
Grant disbursed: tbd - directly at protocol launch (around end of April)
As a participant in MetricsDAO, is this prospective partner interesting? (this poll is non-binding)
Poll lasts until Sunday, 2022-03-27 (full UTC day)
- ACCEPT - Work with the prospective partner
- DECLINE - Decline to work with the prospective partner
0 voters
