FryWorld Project Review: An OG Binance Smart Chain Optimizer

The FryWorld model has pioneered the way for future Yield Optimizers on the BSC, creating an innovative model that allows users to automate their yield farming through "smart vaults."

By
Goon Trades
on
January 4, 2021
Category:
Project Insight

What are Vaults?

For those who are unfamiliar with vaults, I will insert an excerpt that was used to describe vaults in my Beefy Finance Project Review, which I believe elegantly describes the function of vaults:

Vaults serve as investment instruments, implementing strategies through smart contracts. These vaults automate the best yield farming opportunities. Vaults can perform the following actions: Use assets as liquidity, provide assets as collateral for others, manage collateral to reduce odds of liquidation, and use assets to generate a yield and compound profits. With the following actions, vaults allow users to automate their De-Fi farming experience completely. The community and the Fry.World teams create strategies, allowing the process to be effectively optimized.
Best Bank Vault Illustrations, Royalty-Free Vector Graphics & Clip Art - iStock

Overall, Fry.World has implemented numerous fryvaults that automate the yield farming process, with some vaults compounding multiple times daily. Vaults on the BSC are able to take advantage of this due to the low gas fees, unlike the Ethereum Network.


FryWorld

FryWorld has been a pioneer on the Binance Smart Chain (BSC), becoming one of the first Yield Optimizers. The team decided to launch their project on the BSC due to the network's low gas fees, and its growing user base, which allow for much more effective vault strategies.

The teams' goal is to build a comprehensive platform to automate users’ farming/yield processes. This platform removes the complexity of yield farming, as community and team-based strategies will take advantage of the most optimal yields. On top of this, the whole process is automated, allowing users to earn true passive income from crypto.

Fry.World has continued development on the BSC recently partnering with BurgerSwap and 7up Finance in the "FastFood Alliance". This partnership has just begun and already brought users NFT's as well as over $70,000 in rewards during the holidays. This alliance is one to keep an eye on with two BSC heavyweights, BurgerSwap and Fry.World, also let's not forget about 7up Finance.

Key Features

--Deflationary FRIES Token

--Fair Launch Token

--KETCHUP Native Governance and Reward Token

--30+ Vaults

CAKE LP Vaults

Fry.World features over 30 vaults, consisting of three main vault types: CAKE LP vaults, single coin vaults, and the Fry Reaper Vault. The CAKE vault strategies are fairly similar to most yield optimizers on the BSC. Users will deposit CAKE LP tokens into Fry.World, and in return, they will receive wrapped fryCake-LP tokens. The original Cake-LPs are then used in the specific vault strategy, creating tremendous yields through auto-compounding.

The following fee structure is used for the CAKE LP vaults:

The withdrawal fee is 0.05%. This fee is only to prevent users from going in and out during harvests. The fee is given back into the strategy and not taken by dev team.

Harvests: 88% auto-compounding

5% performance fee: is used to fund the ongoing/further development

5% sent to KHP holders — $FRIES stakers. 

2% as gas fee

This structure allows users to earn bountiful yields while also funding the future of Fry.World, and rewarding users who hold FRIES and, more specifically, the KHP native governance token.


Single Coin Vaults

Fry.World has incorporated a couple of single coin vaults, supporting BAKE and CAKE tokens. These strategies take advantage of the staking rewards offered on PancakeSwap and BakerySwap, auto-compounding the rewards.

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These vaults use the following fee structure:

95% compounding 

5% total fee (3% performance fee + 2% maintenance/gas fee) 

No withdrawal fee

Upon depositing into these vaults, you will receive fryCake or fryBake tokens that can be deposited in the fryer to earn a few extra rewards.

Fry Reaper Vault

The Fry Reaper Vault is a unique strategy that earns users FRIES using CAKE. This vault takes advantage of the CAKE single coin staking but allows users to earn FRIES. The magic happens upon withdrawal, where users are returned their initial deposit of CAKE, but the profits are distributed in FRIES. This vault is perfect for those who hold CAKE, but wish to earn FRIES without purchasing this token.

This vault has a pretty standard fee structure, which is displayed below:

* 5% of CAKE is sold for $FRIES and sent directly to $KHP Holders 

* 5% of CAKE is sold for $FRIES as a performance fee 

* 2% of CAKE is sold for $BNB and sent to function caller as a gas fee

This means 88% of the cake is auto-compounded.

Overall this vault allows CAKE users to earn FRIES tokens through capitalizing on the CAKE rewards. This vault is innovative as it does not slow down the compounding effect, auto-compounding 88% of the CAKE. The vault exchanges CAKE profits for FRIES once the user decides they are ready to exit the vault, ensuring maximum returns. On top of this, the vault provides a buy-side pressure, market buying FRIES whenever a user withdraws from the pool.

Tokenomics FRIES

The FRIES token had no presale/pre-mine as apart of the tokens' fair launch. To distribute these tokens, the team decided on two distribution phases, month one and months 2-11. The following distribution schedule will be followed until all 50,600 FRIES have been distributed.

FRIES Emission Schedule:

As displayed by the table and graphic, the last day of FRIES emission will be on October 14th, 2021. 

The FRIES Tokenomics model integrates a 2% fee with every FRIES transaction, 1% is burned, and the other 1% is sent to the Strong Fry Reserve (rewards for KHP holders). This model creates a deflationary system, meaning the circulating supply will be well below the total supply, especially as total FRIES transactions increase over time. A deflationary tokenomics system drives value to long-term holders as their tokens become more valuable as more are removed from circulating supply. Check out my latest Cryptonomics article on deflationary tokens to learn all about how these mechanisms create value.


KHP Tokenomics

KETCHUP (KHP) acts as the Fry.World native governance token, allowing holders to participate in the future of the protocol through community-initiated decisions. On top of this, 1% of all transactions are allocated to the Strong Fries Pool, which will distribute FRIES rewards to KHP holders daily. To receive Ketchup, users must stake their FRIES token. KHP is distributed based on the proportion of the FRIES in the staking pool, using the following calculation:

                                        (amount of Fries to stake) * (total Ketchup) / (totalFries in staking)

This equation may be familiar to some JetFuel users, as JetFuel adopted a very similar model to KHP with their JETS token. This model rewards users who enter the pool early or with a lower proportion of Fries in the staking pool. To return your FRIES you will simply unstake your FRIES, in which your KHP will be burned. The following equation will be used to calculate your portion of FRIES from the staking pool:

                                        (amount of Fries to stake) * (total Ketchup) / (totalFries in staking)


Ketchup Earnings

The following excerpt from the Fry.World whitepaper displays the KHP Reward Allocation:

Staking 2X 

This 3X pool is created only for $FRIES stakers. Fries are harvested into the staking contract. This will increase everyone's share of $FRIES depending on how much share of the staking pool you have in $KHP! The 2X pool to the staking contract will run until all Fries have been distributed.

Ketchup 15X 

Here you are able to deposit your Ketchup to the fryer and fry up some more Fries. The fryer has a 3X multiplier and will be an additional reward on top of the 2X FRIES fryer and your share of the Strong Fries reserve.

Strong Fries 

Strong Fries are added to the Ketchup contract. This means on every single transfer of Fries, and every single harvest from farming, $FRIES stakers are earning 1%

FryVaults fees 

18% of the Cake market-buys Fries on PancakeSwap and sends these fries directly to Fries Stakers (Ketchup Holders). More details here and FryVault section. 

Three of these rewards are instantly accruing after staking FRIES in return for KETCHUP: Staking 2X, Strong Fries, and FryVault Fees. On top of this, users can stake their KHP into the Ketchup 15x pool, allowing users to earn even more FRIES on top of the other rewards. Overall, KCP allows FRIES holders to access many avenues of rewards generated by the Fry.World platform.


Concluding Thoughts

The Fry.World team has been a pioneer for Yield Optimizers on the BSC. They have implemented a unique tokenomics system, which has been partially adopted by the JetFuel.Finance team. As the BSC continues to grow, we should see these yield optimizers continue to absorb more market share, especially as more yield opportunities appear.

Overall there will only be one king optimizer; this is visible on the Ethereum Network, with yearn.finance dominating the yield optimizer market share. This does not mean that all optimizers will disappear, but one will differentiate itself from the others, capturing a majority of users and market share. Currently, Fry.World holds a minimal portion of the market share, but the team has geared themselves for long-term success. I would love to see the innovation of new vaults to compete with Beefy. Finances’ DRUGS and FUEL vaults have warranted tons of attention.


For more information, or if you wish to stay up to date on the project, check out their media and social media

pages.

Website

Telegram

Twitter

Medium

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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.