How Fire Strategy works.
frUSD is a dollar token. It earns the yield of one backing at a time on Solana. A Firetoken holds a token that tracks an asset, such as SPYx for the S&P 500 or xBTC for Bitcoin, borrows dollars against it and puts them in frUSD.
frUSD earns from audited dollar venues.
frUSD holds one backing at a time. A yield switch that the program runs goes only to a backing that its on-chain policy enables. If a full jrONyc exit would strain Exponent's junior pool, any wallet can move frUSD back to ONyc. The admin can also move frUSD to another backing that the program supports, such as Kamino or Jupiter lending.
- About every hour, the indexer ranks each dollar yield we track by its yield, and checks each one's size, exit cost and history.
- It marks a yield unfit for frUSD when, for example, it holds under $1M or selling $100k of it costs more than 0.5%. The backing frUSD holds, and those it can switch to, skip these checks. The main rules are below.
- A switch that the program runs between frUSD backings can lose at most 3% in all.
Where the yield comes from
- Fire Strategy program frUSD and the Firetokens No third-party audit yet
Hylo eHYUSD Audited by 
Accretion 
OnRe ONyc Audited by 
OtterSec 
Exponent PT-ONYC · jrONYC Audited by Sec3
Audits reduce risk. They do not remove it.
A Firetoken keeps your asset and borrows dollars against it.
frSPY and frBTC keep the S&P 500 or Bitcoin you deposit, borrow dollars against it and put them in frUSD. When the yield beats the borrow cost, it buys more of the same asset. You never take a loan yourself.
frBTC and frSPY are live on Solana mainnet. frSOL and frGOLD are in incubation: frSOL deposits are open on mainnet, and frGOLD deposits are not open yet.
- 1You hold the S&P 500.
- 2frSPY borrows dollars against it.
- 3The dollars become frUSD and earn yield.
- 4The yield buys more S&P 500: stock becomes yield-bearing.
Illustrative. frSPY and frBTC can trail their asset when borrowing costs more than frUSD earns.
The loan follows the price.
frSPY keeps what it owes at a set share of the S&P 500 it holds: the dotted line. When the price rises, it borrows more. When it falls, it repays.
- 1The loan is kept at a set share of the S&P 500.
- 2Price up: it borrows more, back up to the line.
- 3Price down: it repays, back down to the line.
Illustrative. The loan is repaid toward its target when it rises above a narrow band, and in full when borrowing costs more than the carry earns. It borrows back toward its target only when the carry earns.
One fee on frUSD and the Firetokens: 15% of new frUSD profit.
Part of the fee is set aside as a reserve. The reserve can support frUSD when returns fall.
- 1frUSD charges 15% of new profit above its high-water mark.
- 2We allocate 5% of profit to the reserve and 10% to team and marketing.
- 3The reserve can support frUSD during low returns, while funds remain.
Illustrative yield path, not a forecast.
- frUSD performance fee
- 15% of new profit above its previous high, kept as frUSD shares in a protocol account. Of the profit, 5% is set aside for a reserve and 10% for the team and marketing.
- Firetokens
- No fee of their own.
- Deposit and withdrawal
- No fee.
- Loan-move tool
- 0.01% of the moved debt.
- Other costs
- Network fees, and the venues' own swap and exit costs.
Your money, and who controls what.
Your frUSD and Firetokens stay in your own wallet. One program on Solana mainnet holds the positions behind them in venues such as Exponent, Kamino and Jupiter, and its accounts are public. Those venues set the exit price and can pause withdrawals.
Deposit and receive the token in a single signature.
Exits depend on on-chain liquidity and on the backing's withdrawal limits. Network fees apply.
Withdraw in a single signature. No lock-up, no epochs, no withdrawal queue.
The program is upgradeable, and an admin key sets its configuration.
Repay, deploy, collect yield, compound and borrow back up to the target for frBTC and frSPY, and settle frUSD's fee: each of these is a public instruction, and the program sizes it. Our bot sends them today. If it stops, any wallet can send the next one, usually for less than a cent.
Who controls what
- You
- You sign each deposit and each withdrawal from your wallet. The first time, a Firetoken deposit or withdrawal can need one more signature to set up a token account. Paying with another token adds a separate swap transaction to sign first.
- The program
- One program at one address controls the deposits and sizes every amount in the keeper's steps. Its accounts and history are public on Solscan. Program
- Our keeper
- Our keeper sends the routine upkeep and pays its fees. If it stops, any wallet can send the protection steps. For frBTC and frSPY, any wallet can also send the other upkeep steps, the borrow back up to the target included; the program sizes each one. For frSOL, the borrow, deploy, release and compound steps need the keeper key or the admin. Only the keeper key can send the signed borrow-rate reports.
- The admin key
- An admin key sets the configuration and can move frUSD's backing between the venues that the program supports. The program can be upgraded.
What can go wrong
- Yield is variable, and principal is not guaranteed.
- A venue can lose value or pause withdrawals. frUSD redeems for its share of the backing through that backing's exit route.
- One of frUSD's backings, jrONyc, is a junior tranche: it takes losses before the senior tranche.
- When borrowing costs more than frUSD earns, a Firetoken can trail its asset.
- A Firetoken's loan can be liquidated if the asset's price falls faster than repayments bring the loan back into its band, or if a repayment fails or is not sent.
- The program can be upgraded, and it has no third-party audit yet.
- A price that is too old, or too far from its average, stops a frUSD transaction.
The rules that run today.
The rules that move money live in the program. Our keeper sends the steps and pays the fees; the program sizes every amount. Open a rule to read it in full.
frUSD
Rank the yields Every hour
The indexer ranks each dollar yield we track by its yield, and checks its size, exit cost and history. This ranking is for display; it does not move funds. The backing frUSD holds, and those it can switch to, skip the checks. Any other yield is marked unfit for frUSD when, among other reasons:
- the yield is under $1M,
- less than $1M can be withdrawn now,
- selling $100k costs more than 0.5%,
- it has no swap route or no measured exit,
- it is leveraged or an LP,
- it fell 1% or more from a peak in the past year,
- it needs KYC,
- or its exit needs more than 30 accounts.
Check each price Each transaction
The program stops a frUSD transaction when a price it uses is older than 180 seconds or 600 slots, more than 2% from its average, or outside its allowed range. A Firetoken loan stops on a price older than its own limit.
Keep the exit price Each exit
While frUSD holds jrONyc, each exit sells its ONyc for no less than 99.5% of the oracle value.
Limit the switch loss Each switch
A yield switch that the program runs goes only to a backing that its on-chain policy enables, and can lose at most 3% in all. The protection exit from jrONyc to ONyc is separate, and any wallet can send it. The admin can also switch frUSD to a backing that the program supports; each step of an admin switch can lose at most 3%.
Protect the exit Above 80% junior use
When a full jrONyc exit would push Exponent's junior use above 80%, any wallet can move frUSD's backing back to ONyc, while Exponent's junior withdrawals are open.
Save a yield sample Every 12 hours
A frUSD yield sample is saved on-chain. The program keeps the last 16, about 8 days.
Firetokens
Check each loan About every 30 seconds
The keeper checks the room left for frUSD's jrONyc exit first, then each Firetoken loan against its band, a narrow range around its target. A band repayment or a jrONyc exit that has not landed is sent again every 3 seconds, until 90 seconds after the first send.
Repay the loan Above the band
A loan above its band is repaid toward its target, and any wallet can send that repayment. A loan is repaid for its cost only when at least 30 minutes of borrow-rate readings show it.
Borrow, compound and deploy Every 2 to 10 minutes
The keeper borrows up to the target only when the carry earns, compounds the carry into the asset, and puts idle cash into frUSD.
Read the borrow rate When the carry moves
The keeper reads each borrow rate at least once a minute, and frBTC's and frSPY's every cycle. It writes a reading on-chain when a loan's net carry moves by 0.5 points, crosses its exit limit, or stays at or below that limit. The program decides with up to 96 minutes of these readings.
On every send
Simulate first Before you sign
The site simulates your deposit or withdrawal, and you see what you get before your wallet signs.
Any wallet can protect If the keeper stops
Any wallet can send the protection steps. The keeper can also report each healthy cycle to a separate watchdog, which alerts the team when 90 seconds pass without a report, or at once when protection is due.
Built by the Fire Strategy team, on our own Solana nodes.
We run our own Solana full node, and Blockzilla, our archive node with every Solana block since genesis.
About Blockzilla →Deposit dollars, or explore the Firetokens.
Run a simulation Read the risks
Yield is variable and principal is not guaranteed.