f(x) Protocol $FXN

f(x) Protocol is a cutting-edge crypto project that develops two innovative ETH derivative assets. The project's primary objective is to decompose ETH collateral into two distinct tokens. The first one, fETH, is designed to retain low volatility, similar to a stablecoin. The second one, named xETH, is a leveraged long ETH perpetual token that characteristically possesses higher volatility.

Unique Features of f(x) Protocol

The uniqueness of the f(x) Protocol lies in its profound design for creating a symbiotic system. This system aims at decomposing ETH into two useful tokens, each with its distinct functionality and benefits.

f(x) Protocol's Low Volatility Token: fETH

fETH, the first token produced by the protocol, is inherently a low volatility token. Its distinct characteristics include:

• Fully decentralized and Ethereum-native.
• Designed to minimize volatility while retaining a minor exposure to the market trend.
• Can be minted and redeemed instantly, catering to stablecoin demand.
• Possesses maximum liquidity depth, a derivative of the demand for xETH instead of a fraction of the demand for CDPs.

f(x) Protocol's Leveraged Long ETH Token: xETH

xETH, the second token processed by the protocol, is a leveraged long ETH token. Its unique features include:

• Fully decentralized and Ethereum-native.
• Composable and possesses on-chain liquidity.
• Has a significantly low risk of liquidation.

Token Use Cases

f(x) Protocol employs ve tokenomics. According to this, when FXN is locked, it produces veFXN, where the amount of veFXN received is proportionate to the lock time. About 75% of the treasury revenue is distributed amongst the veFXN holders, creating an economic incentive to participate in the protocol.