FODL is a fully decentralized (non-custodial) leverage trading platform using liquidity from collateral lending platforms like Compound and Aave instead of funding rate and margin markets.
FODL differentiates itself from other leverage trading platforms in the following ways:
- The protocol is currently the only fully-decentralized platform. This means that you do not have to send your funds to any centralized pool of any kind to trade on FODL (not your keys, not your coins).
- FODL is trustless.
- FODL is immutable.
- You pay 0% funding rates with FODL. These funding rates can be excessive during times of extreme volatility.
- The fee revenue collected by the platform will be distributed back to FODL token holders in a mechanism as voted on by the DAO FODL also provides incentives in various tokens when you open positions on the platform.
- There are NFT elements to FODL as well. Each position is actually an NFT which allows for a variety of possible use cases. For instance, one use case is using your position as collateral on an external platform like Drops Dao to earn token incentives and to get additional liquidity.
The team behind the FODL platform consists of a core team of 17 people associated with the well-known “0xb1” wallet address. This famous Ethereum wallet address attracted attention as a large and active yield farming fund with 9 figures in net worth. The 0xb1 wallet was at one point responsible for over 1% of all of the activity in the space and turning a profit of $75k-$100k per hour for a period of several days. 0xb1 is also a prominent NFT collector that has signed up with a renowned Hollywood talent agency CAA. Go here to read more about 0xb1.
$FODL is the governance token of the DAO that also functions as a utility token by providing incentives for platform users and liquidity providers. You can also stake your $FODL tokens either single-sided or dual-sided on Ethereum or on Polygon.
Currently, you can purchase $FODL on various dexes including SushiSwap, 1inch, Pancakeswap and QuickSwap. You can also purchase them on various centralized exchanges (CEXs) including Gate.io, MEXC, etc. Please check CoinMarketCap for the latest exchanges to find out where you can purchase the token.
The tax wallet is where the FODL platform collects the revenue from the various positions opened on the platform. The DAO can determine the distribution mechanism for the tax wallet (i.e., token buyback, etc.) back to $FODL token holders
See here: https://fodl-1.gitbook.io/fodl-1/faq/tokenomics
Yes, the protocol has been audited by Quantstamp: https://certificate.quantstamp.com/full/fodl
Go to fodl.finance to use the platform. The protocol was first built on Ethereum and is now in beta version on BNB Smart Chain and Polygon. There are plans to also expand the platform to Avalanche, Arbitrum, and Fantom.
Currently the platform is only built for desktop use. There may be plans to eventually develop a mobile version of the protocol.
Once you open the FODL app, you will have the option to select a preset trading strategy or you can use your own strategy by selecting “New Position.” You will then select the assets you want to long and short, the principal investment amount, and your desired leverage. Now, you’re ready to open your position!
When a user opens the position, FODL takes out a flash loan capable of opening the folded leveraged position in a single transaction, effectively allowing the user to leverage their principle beyond the limits of the underlying platform
Folded leverage is where a user deposits collateral on a lending platform, borrows against their collateral, re-deposits what they borrowed as additional collateral, borrows against the newly added collateral etc until the desired leverage is achieved
FODL has built bots to support stop loss or take profit. If market conditions reach the user’s configured price, FODL bots will unwrap a portion or entirety of the user’s position per configuration. FODL is currently in beta testing mode for bots on BNB and Polygon. See below in the guides section for more information on how to use bots on FODL.
By going long, a trader opens a position with the expectation that the underlying borrowed (short) asset will drop in value against the supplied (long) asset in the future. Read here to see how to open a long position.
By going short, a trader opens a position with the expectation that the underlying borrowed (Short) asset will drop in value against the supplied (Long) asset in the future. Read here to see how to open a short position.
FODL only charges a 0.1% from the principal when a user exits their position. FODL fees are generally lower than other forms and services of leverage.
Yes! In our discord, there are active traders in the “Trading Pit” and “Charts” sections. Also, check out the “Trading Education” for resources to learn more about trading. FODL also provides a weekly market update where one of our traders offers his perspective on the current market movements.
You can see them in the “Rewards” tab on the FODL platform.
The rewards are computed every month and distributed on the 1st of each month. All positions are considered.
Yes. The rewards are computed based on how much and how long your position contributed towards TVL. So even if you had a position opened for only 1 block you would still get some rewards. The rewards are computed every month but even positions open for short time intervals receive rewards.
FODL rewards are distributed using Merkle roots computed off-chain as the computation is made on the total value of a position which changes every block as prices of underlying assets change. The amount of FODL given each week for FODL rewards is determined by this formula:
fodlPerWeek = 3319.23184624 \* (1200 - weekNumber) \* (weekNumber + 1)^(-e/10))
The result is rounded down to an integer. This amount is then distributed 20% to stable/farming positions (same asset positions or stablecoins: USDC, USDT, DAI) and 80% to longs and shorts. Within each category, the fodl is distributed directly proportional to a user's contribution towards the TVL (sum of all supply + sum of all borrows).
FODL smart contract codebase addresses:
- FODLToken: 0x4C2e59D098DF7b6cBaE0848d66DE2f8A4889b9C3
- FODLNFT: 0xB410075E1E13c182475b2D0Ece9445f2710AB197
- FoldingRegistry: 0x92e782BaDab8D21dde8CC2aaE06e5cEB61d23139
- CompoundForksLendingAdapter: 0x7ff11D2c0364511AC5b0418e269d957188E0234c
- AaveLendingAdapter: 0x6BEf01Fa1Ee5f6346057fd6eE4c127789EBcF671
- UniswapExchangerAdapter: 0x77751FB0Ea54EDb5542481Ca8A1D53Df8Ab65aeE
- SushiswapExchangerAdapter: 0x450dB06e802eE13dc1711855E6AC3b351114903C
- ResetAccountConnector: 0xC6421C08F6e7eA5a4BBecEfaCd5602b2A0A2eA94
- SimplePositionBaseConnector: 0x0508363B69b22c4a23d864636B2135D6E87e9708
- SimplePositionLeveragedLendingConnector: 0x3a5BE45fB114c7c5eBfCe1462eaa140f53892f0A
- SimplePositionStopLossConnector: 0x741DC35685325c73b6f6c6CCf69363acf1F59517
- ClaimRewardsConnector: 0x61971936f7F6d6ab70d7eF0Ae4a5eBd4598a5b81
- LendingPlatformLens: 0x119320ec88fce9Bf3196430637C56368CcE48575
- SimplePositionLens: 0x080155C42b0854C3A718B610cC5183e963851Afb
- LeverageWithV3FlashswapConnector: 0xED16f524ddC0896368Dc99ace1B5D318a0834CF2 I
- ncreaseWithV3FlashswapMultihopConnector: 0x47cdcAe79b3A03EF1aC05DAAbf7820a25983435b
- DecreaseWithV3FlashswapMultihopConnector: 0x530231DA74F82290390B00b4C92768C7Fac482f5
Let's say you want to open a long WETH vs USDC with 10 WETH principal investment at 4x leverage on Aave. What the contract does is this:
- 1.Take 10 WETH from you.
- 2.Take 30 WETH flash loan from Uniswap V3.
- 3.Supply 40 WETH to Aave to achieve the 4x leverage.
- 4.Borrow enough USDC to cover the 30 WETH flash loan taken in step 2.
- 5.Repay the flash loan via a flash swap. Flash swap is just a flash loan that can be paid in a different asset.
So now you have 40 WETH supplied and 30 WETH worth of USDC borrowed without any loops.
FODL is not available in the United States nor other prohibited jurisdictions. If you are a resident of, or incorporated or headquartered in, the United States of America or another prohibited jurisdiction, then you are not permitted to receive a distribution of, or transact in, FODL.