Froth (FROTH), the leading memecoin on Flow, was recently fully introduced in its official litepaper. This writeup highlighted factors related to FROTH, including its memetic value and new use cases within the KittyPunch DeFi ecosystem centered around volatility products.

Most important in the litepaper was the introduction of FVIX (FVIX), a new token that can be minted with FROTH at a 10,000 FROTH : 1 FVIX ratio. Simply put, FVIX is the DeFi “version” of FROTH that can be staked to earn yield. As of this writeup, nearly 10% of all FROTH has been locked to mint FVIX.

The FVIX reward yield was initially highlighted as being only sourced from volatility products, including the upcoming PunchVIX protocol. However, we are excited to announce that FVIX will capture protocol fees from the entire family of Punch products, including PunchSwap and the upcoming PunchLend.

PunchSwap is currently the leading DEX on Flow, playing host to the deepest liquidity. To date, fee capture (0.05% of all transactions) has accrued to a treasury wallet planned for future use. Now, this accrued capital will be put into a TWAP order to directly purchase a combination of FVIX and FROTH, which will be converted into FVIX, from  the open market and all future fee generation will be systematically pushed into a similar mechanism to acquire FVIX.

PunchLend, which is in development now and will seamlessly integrate into the PunchSwap platform, will have a similar target for protocol fee capture and distribution to FVIX acquisition.

The planned breakdown of captured protocol fees for Punch products is set at a 75% burn and 25% distribution to sFVIX, the staked version of FViX. The mechanisms of this staking will be introduced in a separate writeup.

Note: fees generated from non-Punch products, including StableKitty, are destined for our stablecoin centric offering (KittyPunch Token, which can be farmed via points/crates right now). Details on this are under wraps but it’s going to blow your hair back.