Partnership with True Freeze Public Good

[deepfreezellc]

Hi all,

This is Charliemarketplace.eth writing (2 Lob holder). We at Deep Freeze LLC are launching a public good patience primitive called True Freeze. Link to preliminary landing page: https://truefreeze.xyz

Product

We've created an immutable/permissionless on-chain Certificates of Deposit ecosystem for blockchain native assets. You lock ETH for your chosen amount of time. You get paid a yield token, frETH as a F(amount, time). You also mint a Freezer NFT representing your deposit. The yield token's value (in ETH) is determined by the free market.

You get 1 frETH for locking 1 ETH out of circulation for 1 year. This is why we call it a "proof of patience".

The Freezer NFTs can be traded on any NFT marketplace and they function exactly the same way as zero-coupon bonds for pricing purposes. This is the key innovation of True Freeze- making it possible to buy ETH with ETH, e.g., buying a 50 ETH Freezer NFT that matures in 1 year for < 50 ETH.

This is risk minimized DeFi. No oracles, no liquidations, no collateral, no impermanent loss. Pure money for on-chain proof of patience.

The engine behind all of this is the FRZ revenue token. If you are patient and your CD matures, you can withdraw your ETH for 0% frETH fees and 0% ETH penalty (i.e., you earned all the frETH you minted and were paid upfront). BUT- early withdrawals require X frETH and 0.25% ETH penalty. Where X is a G(amount, time) and G() > F() for the first 66% of the lock time (see diagram here: https://truefreeze.xyz/mechanics#redeem)

These early withdrawal fees go to stakers of the FRZ token.

To maintain a multi-century anti-fragile tokenomics design; FRZ inflates (see here: https://truefreeze.xyz/mechanics#frz)

This inflation taxes holders of FRZ and forces them into a "Curve War" style fight to accumulate newly inflated FRZ to retain their % of revenue flow. Newly minted FRZ is distributed to everyone who has ever burnt frETH. Burning frETH earns a proportional new FRZ forever. (See the Curve War parallel?)

For more details on why this is sustainable tokenomics see the "Flywheel" diagram here: https://truefreeze.xyz/tokenomics#flywheel

Proposal

Deep Freeze LLC is a very small scrappy team trying to do something cool in public goods. We aren't equipped to create a DAO, run operations, a multi-sig, found a team, raise money, etc. to monopolize on this product. So we want to find DAOs/Protocols to adopt this public good.

All the code is done and its been audited. We're launching in two weeks. We are already planning to airdrop the FRZ revenue token to Lobster Holders. But we wanted to do something interesting and also airdrop to DAOs.

We'd like to airdrop 2% of the initial FRZ supply on ETH to the LobsterDAO multi-sig. This would function as a grant for you all to fund your building. You can stake it, grant it, etc. We hope you don't dump immediately, but technically can't stop you.

Ideal scenario is that by doing this, LobsterDAO has a sense of ownership (along with other recipients) of the public good and feels inclined to use True Freeze, help market it so people claim the airdrop, and maybe even build automated strategies on top of it or integrate it into other products.

Thank you! See PDF version of explainer here: Deep Freeze Explainer.pdf

[kkkrackpot]

Sorry, I cant catch why someone would want to "freeze" his ETH. To earn FRZ tocken? Can you pls elaborate this point in more simple words?

[deepfreezellc]

You lock ETH to mint the Freezer ETH yield token (frETH) and you get a Freezer NFT representing your deposit.

frETH has 2 use cases: (1) you need frETH to redeem Freezer NFTs early (before their maturity date). (2) you can burn frETH to get the inflation of Freezer Revenue Token (FRZ) forever.

The FRZ token is staked to get revenue from people who withdraw early. Because it inflates, people have to get more FRZ to retain their % of revenue.

frETH is the token version of ETH's "discount rate".

The Freezer NFTs are zero-coupon bonds for ETH.

For example if frETH is 0.04 ETH. Then you can lock 50 ETH for 2 years and mint 100 frETH and a 50 ETH Freezer NFT maturing in 2 years. You can sell the 100 frETH for 4 ETH. Then you can sell the 50 ETH Freezer NFT, maybe someone buys it for 47 ETH.

They profit 3 ETH if they wait 2 years for the NFT to mature (47 ETH + 2 Years -> 50 ETH). You profit 1 ETH immediately (50 ETH -> 50 ETH NFT + 4 ETH -> 47 ETH + 4 ETH = 51 ETH).

True Freeze pays people to create these Certificates of Deposit, which makes it possible to buy ETH with ETH (this is the core innovation - trading time for ETH in a risk minimized way).