AladdinDAO
Search
K

What is f(x)?

f(x) splits ETH into a mix of low-volatility “floating stablecoins” called fETH and high-volatility “leveraged ETH” tokens called xETH. Users can supply ETH or stETH to mint either one (pure ETH is zapped into stETH before deposit).
The most fundamental equation in this protocol:
nethpeth=nfpf+nxpx,n_{eth}p_{eth}=n_fp_f+n_xp_x,
where
nethn_{eth}
is the number of ETH collateral,
pethp_{eth}
is ETH’s price in USD,
nfn_f
is the total supply of fETH,
pfp_f
is NAV of fETH,
nxn_x
is the total supply of xETH,
pxp_x
is NAV of xETH.