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:
Is fully decentralized and Ethereum-native;
Minimizes volatility while retaining a small exposure to the market;
Can be minted and redeemed instantly in direct response to stablecoin demand;
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:
Is fully decentralized and Ethereum-native;
Is composable, with liquidity on-chain;
Has an extremely low risk of liquidation.
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