YFI founder AC: How does the decentralized foreign exchange settlement protocol Fixed Forex work?

At the beginning of this month, YFI founder Andre Cronje released a new project called Fixed Forex, which is a decentralized foreign exchange settlement protocol that allows users to mint and exchange various stablecoins pegged to fiat currencies. Yesterday, Andre Cronje wrote on the official blog about the specific operational mechanisms of the project, translated by Chain Catcher as follows:

We have been talking about weakening the control of exchanges, and we have been talking about weakening fiat currencies. Tether and Circle have done more to weaken exchange control than cryptocurrencies. Exchange control often has a simple rule: funds cannot leave its territory without special permission. Tether and Circle both accept deposits locally, and fiat never leaves the bank account, so there is no foreign exchange control (theoretically, this is a very different story in practice and regulation). So let's consider, if you want to make a payment from the United States to South Korea, from USD to KRW, a "simple" path would be to deposit USD into USDT, transfer USDT to Upbit, exchange USDT for KRW, and withdraw KRW.
Fixed Forex aims to accomplish the above tasks without the end user needing to understand these steps. Fixed Forex has two core components: on-chain foreign exchange liquidity and decentralized fiat on/off ramps.
While I am most excited about the latter, its launch date is only possible after we achieve on-chain liquidity. Therefore, for the purpose of this article, we will explain how Fixed Forex works and how users can participate.
1. Iron Bank Fixed Forex (ibff)
Fixed Forex is a collective term for USD, EUR, ZAR, JPY, CNY, AUD, AED, CAD, INR, and any other foreign exchange pairs launched under the Fixed Forex name.
The first available option is ibEUR, which can be minted through yearn.fi/lend. All foreign exchange options can be minted using any acceptable collateral on yearn.fi.
Each foreign exchange pair will target 2 liquidity pools: ib*/* (curve.fi), ib*/ETH (sushi.com).
For each asset, liquidity providers will have four yield options:
1) Provide ib* to yearn.fi/lend and earn interest (currently 6.38%)
2) Provide ib*/ETH to sushi.com (currently 390%)
3) Provide ib*/* to curve.fi (pool TBD)
4) Hold Iron Bank Fixed Forex and earn native token IBFF (vested, veIBFF)
2. veIBFF
The IBFF mechanism is complex and requires careful understanding before participation.
The initial release will only target one pool, ibEUR/ETH.
As an LP, you can stake LP tokens in the IBFF faucet, which provides partial token release, necessary for creating token locks in the vesting contract veIBFF.
The true native token of the system is veIBFF, or the granted IBFF. veIBFF earns protocol fees, which change dynamically based on supply and demand. Currently, these fees are 10.15% of TVL.
IBFF holders can choose to create a vesting lock period of up to 4 years, which will linearly decrease in the veIBFF contract.
Once the lock period is created, LPs can stake ibEUR/ETH in the allocation contract, which will linearly distribute tokens every 7 days.
Allocated tokens are rewarded based on your vesting lock. If the vesting lock is for 1 year, you will receive 1/4 of the tokens as veIBFF, which will unlock over 1 year. The remaining 3/4 of the tokens are allocated to the fee allocation contract.
veIBFF holders can claim rewards twice a week, the first being the accumulated protocol fees (currently 10.15% of TVL), and the distribution of IBFF from the allocation contract.
In short, the more time you invest, the more disproportionate your returns will be.
Disclaimer;
Unaudited;
Early participation yields 0 returns, only risks;
The initial token allocation will be a small portion of the issuance, solely for testing purposes;
Given the very low initial allocation, do not purchase these tokens, do not provide liquidity for these tokens, you will lose money.