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f(x) Protocol: Decentralized Yield-Bearing Stablecoin & 0-Liquidation Perp - Cyrille Brière
Episode 616
Without a doubt, the introduction of stablecoins has vastly increased overall crypto liquidity, adoption and real-world use cases as they offered a safe haven against the industry’s volatility, especially during bearmarkets. However, despite being extremely efficient, the main stablecoin actors (i.e. Circle & Tether) are centralised entities. Many attempts have been made to create a reliable decentralised stablecoin, but regulations and the resounding collapse of Terra’s UST have only pushed towards more established, yet centralised, variants.
f(x) is a new generation CDP (collateralised debt position) protocol that offers on-chain perpetual trading for BTC & ETH with near-0 funding rates and a novel liquidation mechanism which protects users against hard liquidations. The leverage component is powered by emitting fxUSD, the protocol’s decentralised stablecoin, which boasts robust peg-keeping mechanisms, the main one being fxSAVE’s stability pool. The fxSAVE strategy bestows nearly 10% APY to the yield-bearing fxUSD-USDC pair.
Topics covered in this episode:
- Cyrille’s background
- AladdinDAO
- Decentralised stablecoins
- f(x) perps and sharing liquidation risks
- The efficiency of progressive liquidations
- Removing funding rates
- fxSAVE’s stability pool yields
- fxUSD’s organic adoption
- The importance of decentralised stablecoins
- Winning in the perp arena
- Opportunities in the stablecoin adoption race
Episode links:
Sponsors:
- Gnosis: Gnosis builds decentralized infrastructure for the Ethereum ecosystem, since 2015. This year marks the launch of Gnosis Pay— the world's first Decentralized Payment Network. Get started today at - gnosis.io
This episode is hosted by Sebastien Couture.
Published on 9 hours ago