Flat Money is a recipient of the Pyth Retrospective Airdrop. This PYTH allocation allows Flat Money to showcase the power of Pyth Price Feeds and our partnership with Pyth Network.
We’re building Flat Money (UNIT), the first decentralized delta-neutral flatcoin backed by Rocket Pool ETH (rETH) built on Base. It’s a purely onchain, censorship-resistant currency that’s untethered from legacy finance. People can mint and hold Flat Money to preserve their purchasing power and offset volatility within crypto markets.
The Flat Money protocol balances incentives between the Flat Money and Perpetual Futures Markets to maintain a delta-neutral equilibrium. To get accurate rETH pricing data to power both markets, the Flat Money protocol uses a Pyth Network Oracle. Our partnership with Pyth Network allows us to secure all UNIT and leveraged rETH positions with Pyth’s top-tier price feeds.
Pyth Retrospective Airdrop to Flat Money
As a stakeholder within the Pyth ecosystem, Flat Money has received an allocation of PYTH tokens through the Pyth Network Retrospective Airdrop program. With this grant, we plan to incentivize growth within the Flat Money ecosystem and reward community members who support rETH liquidity on Base and use the Flat Money protocol.
Incentives within the Flat Money Markets
Flat Money (UNIT) holders and Leverage Traders are key participants within our ecosystem. These two markets work together to achieve a delta-neutral equilibrium within the protocol.
The users participating within Flat Money’s two markets benefit from Pyth’s fast, dependable price feeds, as this integration adds another layer of security for Flat Money users. Our PYTH grant will be used to incentivize participation within the Flat Money and Perpetual Futures Markets.
rETH Liquidity
Flat Money is working with RocketPool’s Incentive Management Committee (IMC) to boost liquidity in the rETH/wETH Balancer pool on Base. This liquidity will allow those in the Flat Money Early Depositors Vault to convert their USDC to rETH, which will be deposited in the Flat Money protocol to mint UNIT in March 2024.
After we launch on Base, rETH liquidity will be important to allow more people to acquire rETH on Base and participate in the Flat Money and Perpetual Futures markets. Growth in rETH is crucial to further scale Flat Money beyond our launch, which is why a portion of our PYTH grant will be used to boost incentives on decentralized exchanges within the Base ecosystem.
Flat Money’s Pyth Integration
Flat Money uses Pyth Network Oracles for low latency price feeds to protect against frontrunning attacks. The keepers active within the protocol execute traders’ orders using a fresh rETH price from Pyth, which means that orders execute on a price that is slightly in the future. This prevents traders from frontrunning the price oracle and profiting from delayed price updates.
Using purely onchain oracles for pricing exchanges has significant inefficiencies and limitations. A more effective approach involves price feeds that are updated in a high performance environment, with their validity and recency confirmed onchain.
Pyth price feeds are engineered for speed, accuracy, and dependability, updating each second. Price updates are visible on the Pyth Network website. Each update represents a blend of prices reported by various providers.
To ensure accuracy and mitigate the influence of collusion or errors from a few providers, Pyth uses a price aggregation process. The reliability of the feeds is further enhanced by the redundancy among providers.
Flat Money’s Upcoming Launch
In March, the Flat Money protocol will launch on Base mainnet. At launch, Flat Money will leverage Pyth’s rETH price feed to power the Flat Money and Perpetual Futures Markets. To prepare for the arrival of Flat Money, we’ve launched the Flat Money Early Depositors Vault on Toros Finance, where people can contribute USDC and earn Flat Money Points (FMP) ahead of launch.
Early Depositors will have their USDC converted to rETH that will be used to mint Flat Money (UNIT), which is estimated to earn ~20-50% APY based on prevailing funding rates in DeFi markets. Genesis UNIT holders can outpace inflation and dampen the volatility of the underlying rETH as fees accrue. Be among the first to hold UNIT, DeFi’s first decentralized delta-neutral flatcoin in March 2024.
Participate in Flat Money’s Testnet Competition
We will be hosting our final testnet competition ahead of the Flat Money launch on Base mainnet in March 2024. This testnet competition will showcase Pyth’s rETH price feed and it’s vital role within the Flat Money Markets. Anyone interested in participating in the competition can fill out the Flat Money sign up form.
The future of onchain money will be powered by Pyth and built on Base. For more information on Pyth's role in DeFi and its oracle solutions, visit Pyth Network and Pyth Price Feeds and read the Pyth Network documentation.
Keep an eye out for announcements about the Flat Money testnet competition and our full launch in March.