this week’s highlight on Fluidkey is @protocol_fx f(x) is an onchain protocol that lets users access ETH and BTC leverage while offering a delta-neutral USD stablecoin and yield ⚖️ more below!

let’s look at an example: here is what happens when someone takes 5x leverage with 1 ETH on f(x) a wstETH flash loan lets the protocol do the following operation in one transaction: - buy 4 ETH - mint fxUSD against the additional 4 ETH of collateral - repay the wstETH flash loan

if the price of ETH increases by 10%, the user’s position will increase by 50% but if the price of ETH falls and puts the position at risk, the protocol will rebalance the user’s position by selling a small portion of ETH to reduce leverage and avoid liquidation

the example above shows how the protocol’s fxUSD stablecoin plays a critical role in enabling leverage on the other hand, the protocol ensures fxUSD is always backed by sufficient collateral in the form of ETH, BTC, and USDC

fxUSD can also be deposited into a yield-bearing version, fxSAVE, which earns yield from the collateral’s staked form (e.g. wstETH) and protocol fees fxSAVE currently generates 8.5% APY with an average of 12.7% over the past three months

the protocol is currently live on Ethereum and its TVL sits at about $200m

we’re excited to follow along as f(x) Protocol innovate on onchain leverage coupled with a delta-neutral stablecoin Fluidkey users at the top of the score leaderboard can now claim some fxUSD see you next week!