Glossary

$\beta$: It’s a measure of an asset’s volatility compared with the overall market’s volatility, in f(x) protocol, it would be the volatility of fETH/xETH compared with ETH’s price volatility.

CDP: Collateralized Debt Positions (CDPs) are smart contracts that enable users to utilize their collateral assets, like Ethereum's ether, as security to create a different token, frequently a stablecoin like DAI. NAV: NAV is net asset value. It’s the current value, as determined by the protocol, of fETH or xETH. You can mint or redeem xETH or fETH for their respective NAVs.

CR: Collateralization Ratio(A.K.A Health factor). It’s calculated with the equation: CR=Backed Asset Value / fETH Supply. As the notation above in “What is f(x)?”, $n_{eth}p_{eth}/n_fp_f \times 100\%$

xETH Leverage: For detailed algorithms of xETH Leverage level, please refer to “Whitepaper Chapter 7.3.1 xETH Leverage”

Stability Mode Price: The ETH price that triggers the stability mode.