f(x) Protocol
AuditedVerifiedf(x) Protocol is Aladdin DAO's dual-token stablecoin and leveraged-trading platform on Ethereum. It mints fxUSD — a decentralized stablecoin backed by wstETH and WBTC — alongside fixed-leverage xPOSITION/sPOSITION tokens.
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The Problem
Existing decentralised stablecoins are either over-collateralised and capital-inefficient (DAI/LUSD) or rely on off-chain custodians (USDe) — and leveraged ETH/BTC trading typically requires perp DEXes with funding-rate exposure and instant-liquidation risk.
The Solution
f(x) Protocol couples a leveraged-trading market for ETH/BTC with a stablecoin (fxUSD) minted from the same collateral pool. The long-leverage demand from xPOSITION holders subsidises the Stability Pool that defends fxUSD's peg, while users can exit fxUSD instantly by redeeming for wstETH or WBTC at the oracle price.
Why it Matters
Category creator for the 'dual-token stablecoin' design — fxUSD is minted as a by-product of leveraged trading, eliminating funding fees and replacing instant liquidation with a Liquidation Brake. Fully on-chain, fully audited, no centralised custody.
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View allFrequently asked questions about f(x) Protocol
What is f(x) Protocol?+
f(x) Protocol is a Stablecoin protocol operating on Ethereum. f(x) Protocol is Aladdin DAO's dual-token stablecoin and leveraged-trading platform on Ethereum. It mints fxUSD — a decentralized stablecoin backed by wstETH and WBTC — alongside fixed-leverage xPOSITION/sPOSITION tokens.
How does f(x) Protocol work?+
f(x) Protocol couples a leveraged-trading market for ETH/BTC with a stablecoin (fxUSD) minted from the same collateral pool. The long-leverage demand from xPOSITION holders subsidises the Stability Pool that defends fxUSD's peg, while users can exit fxUSD instantly by redeeming for wstETH or WBTC at the oracle price.
Is f(x) Protocol safe?+
DeFi Sentinel rates f(x) Protocol AA with a safety score of 82/100, indicating very low risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. f(x) Protocol has 7 audits on record. DeFi Sentinel's analysis flagged 4 medium, 6 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk, Governance & Centralization, Sustainability & Competitive Position and Reputation & Social Trust. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of f(x) Protocol?+
f(x) Protocol has a DeFi Sentinel safety score of 82/100 (rating AA), last updated May 21, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does f(x) Protocol support?+
f(x) Protocol is deployed on Ethereum.
Has f(x) Protocol been audited?+
Yes. f(x) Protocol has 7 audit reports on record from firms including OpenZeppelin, Trail of Bits, Trail of Bits. Audit reports and dates are linked under the Resources tab on this page.