feUSD, issued by the Felix Protocol smart contracts under the governance of Felix tokenholders, is a decentralized overcollateralized stablecoin soft-pegged to the U.S. dollar (USD) at a 1:1 redemption ratio. [S1]

Holders of feUSD receive a token soft-pegged to one U.S. dollar (USD), minted against crypto collateral deposited into a Collateralized Debt Position. [S1] feUSD itself accrues no native yield as a holding. [S2] Yield is earned only by participating in Felix Vanilla isolated lending markets, where stablecoin suppliers earn interest from borrower demand, with Felix charging a 10% performance fee on earned yield. [S2][S3] feUSD redemptions incur a redemption fee paid in collateral. [S1]

feUSD is issued by Felix Protocol smart contracts rather than by a single corporate entity, and is presented as a decentralized, algorithmic asset. [S1] The holder's claim is a redemption right to receive one U.S. dollar (USD) of underlying collateral, less a redemption fee, by burning feUSD through the protocol, not a claim against a corporate balance sheet. [S1] Access is permissionless and decentralized, with no documented onboarding gate. [S4][S1] Backing collateral, comprising HYPE, UBTC, kHYPE, wstHYPE and feUBTC, is held onchain in protocol smart contracts, with overcollateralization providing the solvency buffer and liquidators and redeemers maintaining backing. [S1][S5][S6]

feUSD is an onchain smart contract token built on the Hyperliquid blockchain, where it and the Vanilla markets operate. [S1][S6] It is minted by depositing supported collateral into a Collateralized Debt Position and burned on redemption, with redemptions executed against the lowest-interest-rate positions first. [S1] Settlement is onchain, and the peg is maintained algorithmically through overcollateralization, redemptions and liquidations. [S1][S6]

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://risk.usefelix.xyz/cdp/redemptions" },
    { id: "S2", url: "https://usefelix.xyz/vanilla-earn" },
    { id: "S3", url: "https://www.usefelix.xyz/vanilla/lend" },
    { id: "S4", url: "https://www.usefelix.xyz/" },
    { id: "S5", url: "https://www.usefelix.xyz/stats" },
    { id: "S6", url: "https://www.usefelix.xyz/vanilla/borrow" },
  ]}
/>


Stablecoins

Felix issues feUSD and USDhl and deploys perpetual markets under the flx namespace on Hyperliquid's HyperCore order book.

Felix combines stablecoin issuance with USDC-settled perpetual contracts on equities, commodities, indices, and crypto.

Felix is a protocol and product suite on Hyperliquid that spans stablecoins and HIP-3 perpetual markets.

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Felix

Felix feUSD (feUSD) is a U.S. dollar stablecoin issued by Felix.

Holders can mint and redeem directly with Felix in HYPE, UBTC, and kHYPE.

feUSD has been issued on public blockchains since March 2025 and is native to HyperEVM and HyperCore.

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