TL;DR: We built infrastructure that converts DEX trading losses into a stablecoin with 7.4x better capital efficiency than traditional approaches.

Every day, decentralized exchanges generate massive losses from:

• Liquidations (longs/shorts getting rekt)

• Slippage (price moves against you mid-trade)

• Funding rate payments (perps bleeding money)

• Getting picked off by informed traders

Traditional solution? Socialize the losses across all LPs. Everyone loses.

We built a three-tier system that routes losses through optimal paths:

If you're paying funding and someone else is receiving it, we match you directly. Cash-settled swap, no token transfers. Both sides mint enhanced FRY.

Smart routing across 5+ DEXes (Hyperliquid, Aster, dYdX, GMX, Vertex). Multi-hop paths, liquidity aggregation, efficiency bonuses.

ML-enhanced market maker as fallback. Slippage harvesting, adaptive hedging, reinforcement learning. +11% better than traditional hedging.

Result: 2.26 FRY per $1 average (vs 0.5 base rate)

Here's the key insight: denominate losses in the DEX's native token, not USD.

When you measure losses in $HYPE or $USDF instead of USDC:

• Higher token price → More valuable loss pool

• More FRY minted per dollar of losses

• Creates positive feedback loop

Proof: 61.5% reduction in funding rate volatility, 7.4x capital efficiency advantage.

Problem: Market makers don't want to reveal their positions/strategies.

Solution:

• zkML proofs (EZKL): Prove your model works without showing validation data

• Pedersen commitments: Hide collateral amounts while proving you're not overleveraged

• Federated learning: Train AI across venues without sharing raw data

Bonus: 30% higher FRY minting rate if you provide zkML proofs.

Test Results (20 wreckage events):

• $2.33M wreckage processed

• 3.74M FRY minted

• 221% improvement vs base rate

• 57% average liquidity utilization

ML Performance:

• +11% hedge ratio optimization

• +15.7% in crisis scenarios

• 85%+ regime detection accuracy

Capital Efficiency:

• 7.4x vs traditional stablecoins

• 61.5% funding rate volatility reduction

• 70% liquidity rails / 30% AI reserve allocation

DEXes: Reduce LP losses, stabilize funding rates, attract liquidity

Market Makers: Convert losses to FRY, access optimal routes, ML-enhanced hedging

Liquidity Providers: Earn FRY from provision, reduced IL, confidential positions

• Routing: Dynamic programming for optimal paths (up to 3 hops)

• Matching: Cash-settled funding swaps (no token transfers)

• AI: Reinforcement learning + regime detection

• Privacy: EZKL zkML + Pedersen commitments

• Contracts: Solidity on Arbitrum (ready for audit)

All production-ready. All open source.

Traditional stablecoins: Backed by fiat or crypto reserves Native stablecoins (USDF/USDH): Backed by DEX native tokens USD_FRY: Backed by wreckage (trading losses)

We're not competing with USDC. We're infrastructure for native stablecoin DEXes to recycle losses productively.

Q1 2026:

• 10+ DEX integrations

• $50M+ TVL

• 500+ Agent B instances

Q2 2026:

• Cross-chain (Solana, Base)

• Advanced ML (transformers)

• Options market

Website: https://aidanduffy68-prog.github.io/USD_FRY/ GitHub: https://github.com/aidanduffy68-prog/USD_FRY Docs: Full technical whitepaper available

Built by liquidity engineers. Powered by Greenhouse & Company.

The first wreckage-backed stablecoin. Because losses shouldn't be wasted. 🍟