f(x) Protocol: Decentralized Yield-Bearing Stablecoin & 0-Liquidation Perp - Cyrille Brière

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:

• Cyrille Brière on X
• f(x) Protocol on X
• AladdinDAO on X

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.