Fractal Protocol


What is Fractal Protocol?

Fractal is a cross-chain liquidity routing protocol. Its first product is USDF, a yield account which accrues value at a fixed APR. The Fractal yield is powered by a diversified set of DeFi strategies deployed on most leading EVM chains.

What platform is Fractal deployed on?

Fractal’s user facing app is deployed on Ethereum. As users deposit, their funds are then routed across chains to the best yield generating strategies at that point in time. In our V2, the Fractal app will be deployed on multiple chains, enabling users to deposit and withdraw in a truly chain agnostic manner.

Do you have a token?

We do not have a governance token at this time but we will have one in the future.

What is USDF?

USDF is Fractal’s receipt token. It is minted by depositing USDC into the Fractal master vault. USDF is redeemable for the initial deposit along with accrued interest at all times.

What are the main protocol components?

  1. 1.
    USDF Master Vault: this is the only user facing component. It allows users to mint USDF in exchange for stable coin collateral
  2. 2.
    Yield Reserve: serves as an intermediary cash flow buffer between yield generating strategies and USDF interest accrual. Yield from underlying strategies is deposited into this smart contract, which in turns accrues the USDF price
  3. 3.
    Bridge Routers: to bridge assets across chains in the most secure and efficient way
  4. 4.
    Strategy Manager Vaults: located on each individual chain. They receive bridge funds from the Yield reserve and allocate capital between all active strategies on that chain.
  5. 5.
    Strategies: deploy capital to generate yield. The harvested yield is then bridged back to the Yield Reserve.
  6. 6.
    Off-chain yield monitoring system & keepers: a set of scripts tracking yield, entry & exit fees, impermanent loss and cross-chain liquidity arbitrage opportunities. These keeper scripts call rebalance functions to allocate capital where it is most rewarded.

How is the yield generated?

Yield is generated by algorithmic DeFi strategies across the leading EVM chains. These include but are not limited to Uniswap v2 LP positions, borrow/lend optimization across platforms, covered-call options selling and market-making.

What does omnichain mean?

Omni chain means that we aim to completely abstract chain specific complexities from users. Most multi-chain apps today are effectively cloned on various chains each with siloed liquidity. Fractal’s is designed as a shared liquidity routing engine, rebalancing one unique pool of liquidity across chains.

How do you handle bridging?

We use two bridging methods today: (1) we appoint centralized bridge relayers (market-makers) who bridge assets using each chains native bridge (2) we are also integrated on top of Li.Fi​

What are the main risks?

Fractal protocol is highly experimental. Users should only deploy what they can afford to lose.
The main risks are (1) smart contract risk of the underlying protocols (2) bridge risk (3) de-peg risk of certain stable coins (3) directional risk of some option strategies

Are the strategies exposed to directional risk?

No. Fractal strategies are exclusively delta-neutral.