fxUSD

Conceived in the wake of the March 2023 USDC depeg, fxUSD is AladdinDAO's attempt at a dollar that never touches a bank. The f(x) Protocol splits staked-ETH collateral into two pieces: a stable, low-volatility side that becomes fxUSD and a leveraged long-ETH token that absorbs the price swings. Users mint fxUSD by opening collateralized positions, and anyone can burn the token to pull collateral back through the protocol, an arbitrage lever that defends the peg from below. Because the reserve is staked ETH, yield flows to a stability pool where holders can stake fxUSD and earn from ETH rewards and trading fees. The claim is entirely onchain and permissionless, backed by crypto rather than Treasuries. fxUSD runs on Ethereum and Base, and its stability rests on the health of its ETH collateral and the rebalancing machinery around it.