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.