FORT-0006: Fund the Development of FUSD

Funding the development of a yield-bearing stablecoin

We propose the allocation of 75,000 MIM from the treasury to fund development of a new yield-bearing stablecoin called FUSD. Our goal is to launch within two weeks from this proposal passing. Once launched, we anticipate adding FUSD as a core treasury asset. FUSD bonding will be the primary method for further treasury growth, and we will bootstrap FUSD liquidity on Curve or other stablecoin farms pending future partnership discussions.

What is FUSD?

FUSD is a stablecoin that will enable individuals to earn yield while still using it. Holders of FUSD will be able to stake it and receive sFUSD, which will rebase to reflect yield once a month. FUSD will be mintable with or redeemable for other stablecoins, which at launch will include MIM, USDC, USDT, and DAI.

FUSD will be immediately stakeable at any point in time. Fortress plans on providing initial liquidity for FUSD.

How will the development of FUSD benefit Fortress?

See below for how FUSD will enable buybacks and treasury increases.

How will the development funds be used?

The proposed expenditure of 75,000 MIM will be allocated as follows:

25k MIM for backend 25k MIM for frontend Rest held for miscellaneous expenses

What will the treasury do with yield on FUSD?

Initially, any yield on FUSD held by the treasury will be regularly sold and used to buyback and burn FORT as a method of returning value to FORT holders. Yield can also be directly held in the treasury to increase the backing per FORT.

How will FUSD generate yield?

FUSD will generate yield by investing in yield farming, arbitrage, and other related strategies.

How will FUSD development be prioritized in relation to past proposals?

The Fortress team feels that the development of FUSD provides a unified and rational approach to generating treasury yield. The implementation of this proposal will therefore take top priority.

Accordingly, passing this proposal will also cancel the implementation of AVAX-MIM LP or TIME bonds and proposed investments (Avalanche-specific yield farms or FODL positions). These will be evaluated as part of FUSD’s yield-generating strategy rather than as direct treasury positions.