When trust is shaken, a new order is being rebuilt.

The market turbulence that left the deepest impression on me occurred in March 2023. At that time, a traditional bank had problems, causing the so-called "most stable" USDC to plummet to $0.86.

I watched the entire market instantly lose balance, with everyone panicking while desperately seeking safe exits. At that moment, I truly realized that the "stablecoins" and "leverage" we rely on for our livelihoods are still built on fragile trust.

It was at that time that the AladdinDAO team decided to step out. They saw a fact clearly: the options on the market were either overly centralized, inefficient, or just a rebranded "funding scheme". Thus, they emerged from the chaos with a new direction - @protocol_fx f(x) protocol.

The first generation of products was designed intelligently: it split a single asset into two parts, one being stablecoins and the other being leveraged tokens. This approach is both simple and practical. In just 16 months, the total locked amount reached 70 million USD, and then they released V2.

The highlights of V2 are very straightforward:

Leverage → BTC and ETH can achieve up to 7 times, with almost no liquidation risk under normal market conditions, and the financing cost is nearly zero.

Stablecoin → A comprehensive on-chain dollar strategy has been launched, operating in a Delta-neutral manner, enhancing returns through perpetual trading commissions and staking, achieving sustainable cash flow.

This mechanism really opened my eyes. In the past, I have seen too many "high-interest traps" that can surge in the short term but are ultimately unsustainable. However, the design of f(x) this time is both decentralized and scalable, and more importantly, it can really sustain itself.

In the coming weeks, I will gradually break down the details of f(x), including its stablecoin logic, leverage mechanics, and why I believe it could be a benchmark for future DeFi yield strategies.

Take your time to chat, perhaps you will find the answers you are looking for in the process.
As trust is shaken, a new order is being rebuilt.

The market shock that has left the deepest impression on me occurred in March 2023. Back then, a traditional bank experienced problems, sending USDC, once known as the "most stable," plummeting to $0.86.

I watched the entire market instantly unbalanced, as everyone panicked and frantically sought safe havens. It was at that moment that I truly realized: the "stablecoins" and "leverage" we rely on are still built on a fragile foundation of trust.

It was then that the AladdinDAO team decided to step forward. They recognized that the existing options were either overly centralized, inefficient, or simply disguised "Ponzi schemes." So, out of this chaos, they forged a new direction: the @protocol_fx f(x) protocol.

The first generation of the product was a brilliant idea: it split a single asset into two parts: a stablecoin and a leveraged token. This approach was both simple and practical. In just 16 months, total locked-in assets reached $70 million, and they subsequently released V2.

V2's highlights are straightforward:

Leverage → BTC and ETH can be leveraged up to 7x, with virtually no liquidation risk under normal market conditions and near-zero financing costs.

Stablecoin → A fully on-chain USD strategy has been launched, achieving a delta-neutral strategy that leverages perpetual trading commissions and staking to enhance returns and achieve sustainable cash flow.

This mechanism is eye-opening. In the past, I've seen too many "high-interest rate traps" that offer short-term appeal but ultimately prove unsustainable. f(x)'s design is both decentralized and scalable, and more importantly, it's sustainable.

Over the next few weeks, I'll be breaking down the details of f(x), including its stablecoin logic, leverage, and why I believe it could be the benchmark for future DeFi yield strategies.

Let's discuss this in detail; perhaps you'll find the answers you seek along the way.