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.
Last modified 23d ago