FOMO $HIT Investment Fund

Stake $XRD to the 💚ADDIX+FOMO🐸 Node, earn xUSDC Dividends

On 17th Jan 2025, FOMO & Addix successfully launched the first Investment Fund on the Radix Ecosystem, with live onchain dashboard here. In June 2024 we expanded to partner with Reddicks, following a significant $XRD delegation to our node.

How it works

When users stake $XRD to the node, fees are generated (in $XRD) as a reward for validating transactions on the network. Of the 100% fees, 80% goes into The Fund, and 20% is split evenly between $HIT, $FOMO & $REDDICKS buybacks, which get airdropped weekly.

With The Fund, we convert the $XRD fees to xUSDC, fUSD, & xUSDT, & allocate them to interest-paying positions within the Radix DeFi Ecosystem, building an investment portfolio. We will never borrow or leverage positions. Yield generated is from simple onchain lend and liquidity provision protocols, such as Weft, Root, Surge & Flux.

Users who stake to our node and mint a badge are now participating in The Fund. The badge is required to trustlessly calculate rewards, in a fair time-weighted manner. That means if one user stakes 1m $XRD for X time, and another person stakes 500k for 2X time, they are weighted equally.

At launch, we paid out quarterly dividends of 80%, with 20% remaining in The Fund to compound. We are currently exploring mechanisms to allow positions to remain open, and let users withdraw their dividends when they choose.

No Principal Capital At Risk

To participate, simply delegate $XRD to our node. To stop, simply unstake. Your $XRD stays in your wallet, eliminating Principal Capital risk.

Other Risks

There are of course Smart Contract exploit risks. To mitigate this, we use a variety of platforms and instruments, and keep a balance between most attractive onchain APY opportunities and a diversified portfolio.

At present, Felix rebalances the portfolio, and triggers any liquidations for payouts. We are in the process of making this more trustless and unruggable, in keeping with our other products.

Hedging & DCA-ing

The most successful hedge funds operate with a delta-neutral strategy, so whichever way the market moves, they have positions that balance each other out, so the net produces an overall positive picture. This is sometimes considered an “all weather portfolio”.

Traditional Nodes on Radix have 100% exposure to $XRD price. You earn 5-6% interest, paid in $XRD. Therefore you are at the mercy of $XRD price.

With The Fund, 80% of fees go into high onchain APY positions, generating income regardless of the movement of $XRD. If $XRD drops, we have essentially been hedging with our regular sells. If $XRD runs, then we are gradually taking some profit, without ever selling our principal capital.

Radix-centric

It is very important for us to keep everything within the Radix Ecosystem. Liquidity within Radix is already small, and we didn’t want to entertain the idea of negatively affecting this. As we grow, we can also begin to meaningfully contribute to platform liquidity.

Compound Interest

There’s a quote attributed to Einstein, that Compound Interest is “The 8th wonder of the world, he who understands it, earns it. He who doesn't, pays it”. The Radix DeFi ecosystem is crying out for liquidity. This means a sensible investment fund can place safe positions in lending markets, and enjoy phenomenal ROI. Over time, this compounds.

Longterm Vision

The vision is never having to cash out. As The Fund grows with Radix, and as user allocations compound, you are able to DCA-out, without having to sell a single $XRD.

We envisage this portfolio is a way of taking profits, without ever exiting your initial position.

What is unique about this?

Of course anyone can do this. However it would involve selling your $XRD to get the position started, then managing DeFi positions, and ultimately deciding when to cash-out.

The great thing about The Fund is your $XRD stays in your wallet, and you get exposure to the fantastic APY opportunities within the ecosystem, then receive your dividend.

In Summary

• By staking $XRD to our Node, you are participating in The Fund.

• Unstake at anytime to stop participating

• 80% of fees go into positions, with 20% split evenly between $HIT, $FOMO & $Reddicks buybacks, airdropped weekly

• Dividends in xUSDC, moving to a withdraw-at-your-discretion model

We are super bullish on the future of DeFi taking place on Radix, and are proud to be building the first Investment Fund on this platform.