Forest Road Vault · Testnet build in progress
The dollar built on working credit.
Forest Road's speciality-finance book — film tax credits, renewable energy, life sciences, real estate, and digital assets — on-chain, as a KYC-gated, yield-bearing synthetic dollar. Yield is variable: the book's actual performance, nothing more.
USDfr supply: —
Total backing: —
Facilities originated: —
Collateral classes: 5
live Sepolia testnet data — test tokens, no real value
terrain: NASA astronaut photography, public domain
Originated, underwritten, and serviced in-house by The Forest Road Company — a speciality-finance merchant bank, lending against real claims since 2017.
The model
Two tokens, one honest split.
A stable, composable unit of account — and a separate instrument for those who choose to bear credit performance. Nobody earns yield without knowingly holding the risk that generates it.
USDfr
the synthetic dollar
Stable. Composable. Fully backed, verifiably.
- Minted 1:1 from approved stablecoins via a KYC-gated controller.
- Backing — stablecoin reserves, short-term instruments, and deployed principal at conservative marks — is an on-chain invariant, enforced in the contracts and checked by anyone.
- Does not itself yield.
sUSDfr
the yield-bearing vault
Variable yield, from the book's real performance.
- Stake USDfr into an ERC-4626 vault; value changes through the exchange rate as facilities pay interest, reserves earn, losses are recognized, and protocol fees crystallize.
- No fixed rate is promised, ever — depositors hold the performance of real credit.
- Exits queue by epoch, FIFO, because the underlying is real amortizing credit. Never presented as instant.
- Launch fees: 10% of gross interest, then 10% of vault profit above one global high-water mark. Performance is prospectively variable up to a 20% cap; management starts at 0% and is capped at 2% annually in v1.
The book
Five collateral classes,
one diversified book.
Four receivable-backed verticals with legal-enforcement remedies — and one marked-to-market class with margin mechanics. Different durations, different risks, uncorrelated by design, with concentration limits enforced on-chain.
Loss absorption
Losses have an order.
Depositors are last.
Every deployed dollar maps to an identified, lien-perfected facility — not a discretionary pool — and every loss flows through a fixed, contract-enforced cascade before it can touch a depositor.
The dual record system →Loss cascade — enforced ordering
1 · Curator first-loss
absorbs first
$10M per class, posted by Forest Road
2 · sGROVE backstop
absorbs second
staked backstop capital, 21-day unbond
3 · sUSDfr principal
last, by construction
depositors — touched only beyond both layers
The ordering is a contract invariant, fuzz-tested across states: losses can never skip or invert a layer, and the exchange rate can never fall silently. Structural ordering of losses — not a guarantee against them.
Built in the open
On testnet until it’s proven.
Every contract ships with its invariants encoded and fuzzed. Mainnet waits for external audits, securities counsel, and an executed legal wrapper.