Thread by @CrossChainAlex

🧵 Before I traded #crpyto I traded #forex (poorly).

Exploring deploying my algos on on-chain forex and discovered @handle_fi

The pitch: the global #DeFi forex protocol to trade/convert/borrow multi-currency #stablecoins backed by #ETH and more.

On #Arbitrum (💙,🧡 ) 1/18

💱 With Handle, users can leverage trade, swap, borrow, and earn from multi-currency stablecoins they call fxTokens.

fxTokens are collateral backed #stablecoins soft pegged to a range of currencies like the $AUD (fxAUD), $GBP (fxGBP), $CAD (fxCAD) and others. 2/18

💱 I like forex as it is highly liquid and offers untapped crossover opportunity for #DeFi.

On average $6.6T trades daily on the global forex market. $30B faily volume on #stablecoins

But DeFi has little issuance of other decentralized stablecoin currencies besides $USD. 3/18

💱 Handle proposes to solve this by allowing users to gain access to alternate currency exposure.

For example, offering options for local currency borrowing, hedging, speculation, and potentially payments. 4/18

💱 Some use cases include:

💰 Ability to settle trades in your local currency
💰 Borrowing against your crypto assets in your local currency
💰 Opportunity to utilize leverage in your local currency
💰 Converting between multi currency stablecoins efficiently 5/18

💱 Some of the key benefits include:

💰 Multi-collateral vaults
💰 Capital efficiency
💰 Decreased liquidation probabilities
💰 Optimal asset utilization 6/18

💱 Available functions include ability to trade #DeFi #forex perps and $ETH with up to 30x leverage.

Ability to convert stablecoins with optimized routing for spot swaps, and borrow a range of multi-currency stablecoins (fxTokens) using #ETH collateral. 7/18

💱 The #RealYield angle is covered by staking and depositing $FOREX and fxTokens, and redeeming fxTokens for protocol collateral at a 1:1 ratio*.

Holders of both $FOREX and fxTokens can earn additional rewards by providing liquidity to liquidity pools on the platform. 8/18

💱 What's backing these fxTokens? They're backed by user-deposited collateral in a vault.

Each vault can only issue one type of fxToken (e.g. fxAUD, fxJPY, fxCNY), but can contain one or many forms of collateral. 9/18

💱 Collateral is assigned metrics such as a minimum collateralization ratio (c-Ratio), interest rate, and liquidation fee to reflect risk attributes.

Vault and system collateral is maintained at levels to back any fxToken debt and ensure that each fxToken remains pegged 10/18

💱 If the or c-Ratio falls below its minimum threshold, it is subject to a 1:1 redemption call on collateral by fxToken holders.

Below its liquidation trigger, it will automatically liquidate to repay excessive debt and bring c-Ratio back to acceptable limits. 11/18

💱 $FOREX is the native token and is used as a reward for protocol accretive actions by participants.

It also allows holders to contribute to platform governance.

420,000,000 FOREX minted over initial 182 week period, followed by a 2.1% annual terminal inflation rate. 12/18

💱 FOREX holders can lock their tokens into the handleDAO to receive veFOREX, or 'vote escrowed FOREX'.

Used to participate in protocol governance and receive up to 2.5x boosted rewards and higher APYs.

Given for actions like providing liquidity, trading, converting etc. 13/18

💱 Also a range of rewards for ecosystem participants to drive fxToken creation, liquidity/exchange, and ongoing stability.

Distributed as $FOREX for actions like depositing collateral and minting fxTokens, trading or converting, providing liquidity on trading pools etc. 14/18

💱 Personally less interested in the token and more interested in the trading platform.

It's nice and works well. I am watching key metrics like volume, spreads, slippage, fees etc.

I'm monitoring those and would like to see TVL grow. 15/18

💱 I'm also interested in setting up @handle_fi #forex vaults on @FactorDAO once we've got that up and running.

If you'd like to learn more about $FCTR (on-chain asset management platform launching on #Arbitrum in Q1) check this thread 🔽

https://twitter.com/CrossChainAlex/status/1596205167958843394

16/18

💱 So whilst it needs time to develop and grow, I see @handle_fi as a unique player in the #DeFi space serving a crossover multi-trillion dollar market.

It's a product I personally want to use and could see it having a great future, especially with #Arbitrum hype. 17/18

The docs are well written so I'd encourage you all to do your own research 🔽

🌐 handle.fi
🐦 @handle_fi
👽 discord.gg/77WDThbZJ4
📩 t.me/handle_fi

And here is my ref link if you'd like to give the platform a try:

➡️ ref.handle.fi/crosschainalex 18/18