spFLDX

Liquidity sinks with Flair

$spFLDX is a Liquid Market product for Flair. A liquid wrapper for $veFLDX, it allows for blackholing governance on Flair with an open exit position at all times.

Flair is a ve(3,3) DEX on Avalanche. Users earn governance tokens as yield that, once locked, give them access to trade fees & voting where token emissions go.

To unlock $FLDX's full governance potential, liquidity providers must lock their governance tokens up to 4 years. Dyson mitigates this process by taking the responsibility of holding locked tokens in exchange for an exit position that is yield-bearing.

How does $spFLDX work?

$spSTR is a receipt token that is minted every time somebody supplies Liquid Market with $FLDX tokens. It acts as a representation of veFLDX that is locked in the minting process.

What if I want to exit my position?

If you want to exit your $spFLDX position, just exit using the $spFLDX / $FLDX liquidity pool on Flair.

How does $spFLDX keep its peg?

Due to the nature of $spFLDX, it is highly incentivized by Dyson using its veNFT gathered from the liquid wrapper. Users who also want to make the most out of their minted tokens must deposit into the spFLDX/FLDX vault on Dyson to earn rewards. This is to ensure deep liquidity at all times for a stable peg. If spFLDX is off-peg, the protocol uses yields & deposits to arbitrage the peg back to a 1:1 ratio.

Liquidity sink & governance blackhole

Because using $spFLDX requires the vault to perpetually lock $FLDX, Dyson acts as a liquidity sink for $FLDX holders, and a governance blackhole to Flair. As Dyson's veNFT grows, so does its potential for yielding rewards for $spFLDX.