Introducing FIREDAO — Fast Track to Financial Freedom.

5 min readJan 13, 2021

The standard narrative is to get a job, buy a house, work until you’re 65 and get a pension. Be loyal to the company and they will take care of you in your old age. You have to throw out that outdated advice and create a new rulebook.” Kristy Shen (Author of ‘Quit like a millionaire).

Freedom is never free. Becoming financially independent from a 9-to-5 job requires a lot of planning, commitment and discipline. Over decades lucky people who managed to escape from office slavery have been inspiring the rest of us by sharing their success stories and recipes how to build financial wealth and live off income from investments. This is how the FIRE movement was born. FIRE, which stands for Financial Independence, Retire Early, offers an alternative lifestyle strategy that allows a “normal person” to retire after 20–25 years of work instead of working until the rest of the life.

In FIREDAO we make a few steps further: we combine the same vision and strategy with cutting-edge financial technologies to fast track people to financial freedom by achieving alpha-returns. We create new products, new rules and offer a new playbook of how to become financially free.

FIREDAO is a community-run organization that develops DeFi (decentralized finance) products capable to generate much higher returns than a stock market index. These extra returns come from smart-contracts (autonomous programs) that run 24/7 and serve a highly liquid cryptocurrency market generating fees from lending, borrowing and exchanging digital assets.

Though DeFi products are based on blockchain technology their financial performance is not linked to Bitcoin and other cryptocurrencies’ prices as they use stablecoins, which price is pegged to $1. This feature of DeFi products allows users to make long-term savings without speculating on coin prices.

FIRE movement for financial freedom.

Financial freedom is a choice that we encourage our community members to make and achieve together. It is a lifestyle movement that unites people committed to achieve financial freedom by making savings and investments early in our professional careers and living off the investments after early retirement instead of depending on a typical 9 to 5 job.

Originally FIRE movement became popular in early 1990s when the global economy did not have the challenges that it faces today, so investing all savings in bonds and stock index funds was a safe and a rational choice.

Yet we believe the global economy is on the verge of another “Great Depression”: the stock markets are all time-high while productivity, employment and the GDP decline due to the coronavirus pandemic. Unlike stock market crashes in 2000s and 2007–08, which took the markets 4 years to recover, the current crisis brings long-term negative consequences: unemployed people lose their qualifications, people suffered from COVID-19 have long-term productivity disorders, massive bankruptcies among SMEs makes access to capital for entrepreneurs more difficult in the future. So, in case the current crises gets worse, it could take the stoсk market a very long time to recover. For comparison after the Great Depression in 1929–39 the markets took 25 years to recover to their pre-crisis levels. So, if you plan to retire early and keep most of your savings in stocks or corporate bonds you must diversify your portfolio.

However, the current economic system does not work for all and new investing vehicles are needed. Radically better ones.

FIRE protocol is a solution to current economic crisis and challenges enabling to generate a much higher returns than stock market indexes thanks to revolutionary innovations in blockchain and DeFi industries.

Yield aggregator: High ROI, 0% volatility

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Our first product — the yield aggregator — enables savings in stable crypto assets like USDT, USDC and DAI (pegged to $1) which have near zero volatility. This means that the value of deposits is not affected by Bitcoin and other crypto assets. The yield aggregator generates much higher annual returns than stock market indexes by eliminating all intermediaries and automatically deploying capital to audited smart-contracts, which make money from trading, lending and liquidity mining events.

All the strategies we develop with the help of FIREDAO community have to focus on 4 key values:

Profitability. FIREDAO constantly monitors the market for the best yield generation opportunities and automatically allocates your capital to the most profitable DeFi protocols.

Safety. Before we add new earning strategies our technical team reviews the code to make sure your funds can be deployed safely.

Efficiency. By pooling funds of many users together and deploying them at once we help small investors save on Ethereum transaction fees (gas) and achieve high returns, which otherwise won’t be possible.

Decentralized Governance. Every community member can propose and vote on new earning strategies.

At launch the yield aggregator has three deposit programs:

DAI deposit program:

This program accepts DAI for deposits and allocates DAI to dForce DAI Yield Market, farms dForce Token (DF), sells DF for DAI and redeposits DAI back to the program.

‌USDT deposit program:

This program accepts USDT for deposits and allocates USDT to dForce USDT Yield Market, farms dForce Token (DF), sells DF for USDT and redeposits USDT back to the program.

‌USDC deposit program:

This program accepts USDC for deposits and allocates USDC to dForce USDC Yield Market, farms dForce Token (DF), sells DF for USDC and redeposits USDC back to the program.

After we receive a feedback from FIREDAO community we will add more deposit programs.

Governance

In contrast to the current financial system, FIRE protocol is governed by the Decentralized Autonomous Organization (DAO). It allows every community member to participate in protocol’s development by making necessary proposals and voting on protocol’s changes with the protocol’s governance token — FIRE token.

FIRE Token

FIRE token is a governance and profit-sharing token, which means that FIRE token holders can propose and vote on yield-generating strategies as well as receive a share of total profit made by deposit holders.

Details about FIRE token will be announced in the future.