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:


where nethn_{eth}is the number of ETH collateral, pethp_{eth}is ETH’s price in USD, nfn_fis the total supply of fETH, pfp_fis NAV of fETH, nxn_xis the total supply of xETH, pxp_xis NAV of xETH.

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