[Serenity Premium] f(x) Protocol [Initial Review May 2024]
f(x) Protocol is the third DeFi protocol launched by Aladdin DAO, who is also the team behind Concentrator and Clever. AladdinDAO was started by an anonymous team in 2021 and has no relation with BlackRock, which has a Software company of the same name. In its public profile, it shows ICO investors including Alameda and Consensys Mesh.
f(x) Protocol is the innovative stablecoin platform by AladdinDAO, launched in Nov 2023.
The Concept of f(x) Protocol
f(x) Protocol issues fxUSD and fETH, which are both overcollateralised stablecoins, both collateralised by ETH or its liquid staking derivatives stETH and frxETH. fxUSD is designed to always have a value of $1. fETH is $1 plus the 10% the price change of ETH and currently it is $1.06. Lately, the protocol has launched btcUSD and rUSD, which are BTC collateralised stablecoin and re-staking ETH derivatives collateralised stablecoin, respectively. The mechanism of these stablecoins is similar, so we only use fxUSD to explain in this article.
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