After experiencing the frenzy of DeFi Summer and the deep adjustments of 2022-2023, the industry is seeking truly sustainable innovative directions. In 2025, a project called Ftop-Fist.Fun proposed a brand new LP-DeFi compound interest model, attempting to fundamentally reconstruct the supply mechanism of decentralized liquidity.

The dilemma of traditional DeFi compound interest models

Looking back at the DeFi 1.0 era, compound interest projects represented by Olympus DAO and Wonderland once flourished but ultimately fell into the 'death spiral'.

The core issue with these projects is that the treasury bond model relies on external assets purchasing bonds to maintain a high APY. Once the inflow of external funds slows down, the entire system collapses immediately; the infinite issuance mechanism maintains returns by minting new tokens, leading to an unlimited increase in token supply and a continuous decline in token prices; one-way value outflow means that the high returns obtained by users actually come from the funds of subsequent participants, essentially forming a Ponzi structure.