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🍒Current Yield: 45% APR (Early Phase might change rapedly)

The Fedz has only just started operating.

At this stage, TVL and trading volumes are still small, so it is difficult to measure “organic” returns in a statistically meaningful way. Early numbers are inherently noisy, and short-term performance does not yet reflect the system's long-term economics.

Because of that, the current 45% APR should be understood as a bootstrapped yield.

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Why the Yield Is High Right Now

Early Fedz participants are taking on:

  • system risk,

  • liquidity risk,

  • and bank-run risk in an unproven environment.

At the same time, they are:

  • committing capital early,

  • helping markets form,

  • and validating the system under real conditions.

To make this effort and risk worthwhile, The Fedz is intentionally subsidizing early yields.

This is not meant to represent steady-state returns. It is an early adopter incentive, common in new financial systems and infrastructure.

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How This Evolves

As The Fedz grows:

  • TVL increases,

  • trading volume increases,

  • fee-based revenue becomes dominant,

Bootstrapped yield will gradually give way to usage-driven yield.

Over time, returns should increasingly reflect:

  • real market activity,

  • capital efficiency,

  • and the system’s role as a liquidity and issuance layer.

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Summary

  • The current 45% APR is an early-phase incentive

  • Volumes and TVL are still small

  • Yields are partially bootstrapped

  • Early adopters are compensated for higher risk

  • Long-term yields will depend on real usage

Early participation is rewarded because early risk is real.

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