> For the complete documentation index, see [llms.txt](https://docs.aladdin.club/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aladdin.club/f-x-protocol/why-f-x.md).

# Why f(x)?

f(x) Protocol is built to create a symbiotic system that decomposes ETH into two useful tokens. 

For fETH, the goal is to produce a low volatility token which:

1. Is fully decentralized and Ethereum-native;
2. Minimizes volatility while retaining a small exposure to the market;
3. Can be minted and redeemed instantly in direct response to stablecoin demand;
4. Has maximum liquidity depth based on a multiple of demand for xETH, rather than a fraction of demand for CDPs.

Specifically for xETH, we create a leveraged long ETH token which:

1. Is fully decentralized and Ethereum-native;
2. Is composable, with liquidity on-chain;
3. Has an extremely low risk of liquidation.

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