Tokenomics
Last updated
Last updated
Welcome to The Fedz tokenomics guide. This page explains the structure of tokens within The Fedz ecosystem, what each token does, and how you, as a user, can interact with them. We’ll walk through the full lifecycle: from joining The Fedz, minting an NFT, providing liquidity, staking sbFUSD, and finally printing FUSD. Each step is designed to serve a clear purpose within a resilient, under-collateralized stablecoin system.
The Fedz uses a carefully designed multi-token architecture to maintain price stability, encourage user participation, and prevent bank runs.
What it is: A non-fungible token that grants access to the Fedz system.
Why it matters: Only NFT holders can participate in liquidity provisioning, staking, and FUSD printing. It acts as a gatekeeper to ensure committed participation.
What it is: A token representing your share in the Uniswap V4 liquidity pool.
Why it matters: This token tracks your position in the pool that holds FUSD and USDT. It matters because this position signals to the rest of the market that The Fedz are committed to defending the FUSD peg. By holding this LP token, an NFT holder agrees not to sell FUSD below its intended value, reinforcing trust and reducing panic-induced selloffs.
What it is: A staking token that users receive as rewards for locking liquidity.
Why it matters: sbFUSD is the core staking mechanism that builds a buffer of stability and helps regulate short-term supply. It earns you the right to mint FUSD.
What it is: The stablecoin users can print by burning sbFUSD 1:1.
Why it matters: By design, FUSD is under-collateralized but protected by system-wide incentives and rules. It is the synthetic dollar derivative used for payments, trading, and holding.
The Fedz uses a custom-built Uniswap V4 pool structured around two assets: FUSD and USDT.
The Fedz liquidity mechanism operates under a sequential access model.
Each NFT holder knows when it’s their turn to interact with the liquidity, based on a transparent queue system embedded in the protocol.
This means FUSD issuers cannot front-run or panic-sell ahead of others.
The sequential structure avoids coordination failures and reduces systemic risk by enforcing orderly behavior.
This adds another layer of confidence for external FUSD users, knowing that exits are timed and structured, not chaotic or opportunistic.
The liquidity in this pool is not fully flexible: it is semi-locked using custom Hooks.
These Hooks restrict how and when liquidity can be withdrawn or rebalanced.
This restriction is intentional. It signals a commitment to external FUSD users that liquidity will not flee during a crisis.
This design transforms liquidity providers (NFT holders) into credible, pre-committed backers of the system. When users see that FUSD is backed by locked capital from aligned NFT holders, confidence increases. This mechanism mirrors the way central banks commit reserves to defend fiat currencies but in a decentralized and programmable way.
Go to the NFT minting page or secondary marketplace.
Holders gain exclusive access to private liquidity pools and minting rights.
NFTs are limited per season and come with different tiers.
Connect your wallet to the official pool interface.
Deposit FUSD and USDT into The Fedz V4 private pool.
The V4 Hooks apply restrictions on your position, ensuring liquidity remains during critical periods.
You receive an LP token representing your stake in the pool.
Once liquidity is deposited, and LP tokens are verified, you receive sbFUSD.
sbFUSD is non-transferable and only usable inside the system.
It represents your staking share and buffers the system against volatility.
Lock sbFUSD in the printing contract.
Based on a predefined ratio, you can print FUSD 1:1.
Example: Stake 100 sbFUSD → Print 100 FUSD.
If the cap for the round is 50 than you print 50 FUSD this round and 50 FUSD next round.
NFTs ensure commitment: Only those who commit capital and governance attention can influence or access the system.
Semi-locked liquidity sends a signal: Restricted liquidity from NFT holders serves as a market-wide commitment device. It creates confidence in the system by ensuring that capital backing FUSD won’t vanish during stress.
sbFUSD creates a buffer: Before FUSD enters circulation, the system holds value staked as insurance.
Under-collateralization done safely: Instead of relying on external market forces to maintain a peg, The Fedz uses internal rules, time-based mechanisms, and isolation features to protect stability.
Each component exists to create a credible commitment mechanism: users cannot rush to exit during stress, and liquidity is injected automatically at critical price thresholds.