fETH, issued by the f(x) Protocol smart contracts under the governance of vote-escrowed FXN (veFXN) tokenholders, is a decentralized crypto-collateralized stablecoin token that splits Ethereum (ETH) collateral into low-volatility and leveraged tranches. [S1][S2]

fETH provides fractional, low-volatility exposure to ETH price movements through the protocol's split mechanism, which divides crypto collateral, primarily Lido wstETH and stETH plus WBTC, into low-volatility and high-volatility leveraged positions. [S1][S3] Holders earn yield by depositing into the Stability Pool, which distributes wstETH and WBTC sourced from position fees, reserve yield, and Aave yields, or FXN emissions. [S3] Protocol revenue derives from collateral yield, minting and redemption fees, position opening and closing fees, and rebalancing and liquidation fees. [S2]

f(x) Protocol is a decentralized autonomous organization with no legal entity; the Terms of Use state it has no company, partnership, or central entity, and the interface is maintained by open-source contributors. [S4] It is not issued by any single corporate entity, and no regulator, license, or registration is claimed; the Terms warn regulators may view the protocol as an unregistered exchange. [S4] The holder's claim is a crypto-collateralized stablecoin, not a fund or trust interest, overcollateralized by onchain collateral in smart contracts. [S3][S5] Users must be at least 18 and exclude the United States, Canada, Mainland China, and sanctioned jurisdictions. [S4] Stability Pool redemption requires a cooldown period. [S3]

All f(x) tokens are ERC-20, natively issued on Ethereum, with cross-chain availability on Arbitrum, BSC, Optimism, and Polygon via LayerZero bridging. [S6] fxUSD is minted at the contract level when leveraged positions open, subject to a mintability check. [S7] Settlement is onchain and atomic except for the Stability Pool redeem cooldown, with pricing from Chainlink TWAP oracle feeds. [S3][S8][S9]

<Sources
  retrievedAt="2026-06-21"
  items={[
    { id: "S1", url: "https://docs.aladdin.club/f-x-protocol" },
    { id: "S2", url: "https://docs.aladdin.club/f-x-protocol-new/f-x-2.0/fees-and-revenue" },
    { id: "S3", url: "https://docs.aladdin.club/f-x-protocol/stability-pool" },
    { id: "S4", url: "https://fx.aladdin.club/terms-of-use" },
    { id: "S5", url: "https://fx.aladdin.club/" },
    { id: "S6", url: "https://docs.aladdin.club/f-x-protocol/contracts" },
    { id: "S7", url: "https://docs.aladdin.club/f-x-protocol-new/f-x-2.0/faq" },
    { id: "S8", url: "https://docs.aladdin.club/f-x-protocol/stability-mode" },
    { id: "S9", url: "https://docs.aladdin.club/f-x-protocol-new/oracles" },
  ]}
/>


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f(x) Protocol

f(x) Protocol Fractional ETH (fETH) is a Yield strategy stablecoin issued by f(x) Protocol.

Issuance is paused, with redemption still open.

Retail investors can mint and redeem directly with f(x) Protocol in ETH.

fETH has been issued on Ethereum as an ERC-20 token since August 2023.

f(x) Protocol Fractional ETHfETH