Freezer-ETH Token (frETH)

frETH tokenizes people's time-preference for ETH, serving as a baseline rate of return for (confirmed) ETH HODLers.

1 frETH = [1 ETH locked for 1 Year]

This is the fundamental formula of True Freeze. The longer you lock, the more frETH you mint. But, the farther the maturity date, the more frETH you need to redeem a Freezer NFT early.

frETH is payment for making Freezer NFTs. For those who are HODLing ETH no matter what, this is easy yield paid 100% upfront.

The value of frETH comes from 2 sources: 1. To redeem a Freezer NFT for its ETH prior to the maturity date you need frETH. See: Early Withdrawal Cost Calculation Because ETH is volatile and the macro-economic context around ETH and crypto changes, people have changing time preference for ETH as a function of ETH's price and their expectations for ETH's price. Traders sell ETH high to re-buy it low. Freezer NFTs, can be bought on NFT marketplaces at discounts. After the maturity date they're free to redeem. Prior to that, it costs a variable frETH fees and a 0.25% WETH penalty. It can be profitable for people to pay these fees to get the liquid ETH to sell high and rebuy low. 2. frETH can be burned to earn the inflation flow of the FRZ revenue token. Freezer Revenue Token (FRZ) As revenue flow from early withdrawals changes over time, so should FRZ revenue token's price. When frETH price is very low relative to FRZ, people can burn it to increase their flow of new FRZ. When frETH's price is high relative to ETH, people can deposit ETH, mint frETH and sell it. When frETH's price is low relative to ETH, people can buy it and use it to redeem NFTs early to access ETH. See The Flywheel for more details.