Some months after the creation of his last DeFi protocol, Andre Cronje, the founder of yEarn Finance, is back on Ethereum (ETH). For once, his new Fixed Forex project has been launched without any contracts being audited.
Fixed Forex: Andre Cronje’s new project
On Friday, July 2, Andre Cronje, the founder of yEarn Finance, unveiled a new DeFi project via his Twitter account.
Dubbed “Fixed Forex,” the protocol is billed as a framework for stablecoins that is immutable, fee-free, governance-free and decentralized.
According to the announcement, this protocol will allow its users to generate stablecoins of various fiat currencies (US dollar, euro, rand, yen, yuan, …) by collateralizing funds, similar to MakerDAO and its DAI.
The amount of stablecoins issued when an asset is collateralized is derived from the Compound, Aave (V1 and V2) and Iron Bank protocols.
“As these systems add or update their accepted collateral, Fixed Forex dynamically updates itself.”Andre Cronje’s announcement on Medium
As is the case with most protocols of this type, Fixed Forex has a liquidation mechanism to ensure that loans taken out do not go into default. To do this, Andre Cronje has introduced a “soft liquidation” mechanism, where only the minimum amount of debt is paid off to bring the position back into balance.
No audit, but no risk of extraction
As usual, Andre Cronje published the protocol contracts before they were audited. However, this way of working has more than once done him a disservice, especially in the context of the release of the Eminence protocol, during which 15 million dollars were stolen due to the presence of a flaw.
Therefore, it is advisable to use this protocol with a lot of caution, because even if it is presented as impossible to extract value, we are never safe from a flaw. Let’s also note that this new project is not accompanied by any token, so it is impossible to speculate blindly on it, which, according to Andre Cronje, protects his creation from “ape” (“monkeys” in English, a nickname describing speculators who frantically invest on the slightest DeFi project without worrying about anything other than the possible fashion effect).
As for the contracts, they should be audited in the coming weeks and the final version of the protocol will be deployed based on the Curve Finance protocol pools.
Let’s hope, for Andre Cronje, that his new protocol is not the target of an attack. Indeed, the number of attacks on DeFi projects, whether they are audited or not, is constantly increasing.