fxUSD, issued by the f(x) Protocol smart contracts under the governance of vote-escrowed FXN (veFXN) tokenholders, is a crypto-collateralized stablecoin that maintains a strong peg to the U.S. dollar (USD) and is backed by staked ETH derivatives and WBTC [S1][S2][S3].

Each fxUSD token represents one dollar of overcollateralized debt minted when leveraged positions open, with the peg maintained near 1 USD through a Stability Pool arbitraging fxUSD against USD Coin (USDC) at Chainlink oracle prices [S2][S4]. Holders earn yield by depositing into the Stability Pool to receive wstETH and WBTC from xPOSITION fees, reserve yield, and Aave yields, or FXN emissions [S2]. Holders bear minting, redemption, rebalancing, and liquidation fees [S5].

f(x) Protocol is a decentralized autonomous organization with no legal entity, developed by Aladdin DAO, and is not issued by any single corporate entity [S6][S1]. No regulator, license, or registration is claimed, and the protocol discloses that regulators may view it as an unregistered exchange [S6]. fxUSD is a decentralized stablecoin conferring no legal claim against an issuer, backed onchain by ETH and staked ETH derivative collateral held in smart contracts at a 100% minimum collateralization [S2][S7][S1]. Users must be at least 18 and exclude the United States, Canada, Mainland China, and OFAC, UN, or EU sanctioned jurisdictions [S6]. Stability Pool redemption returns fxUSD and USDC after a cooldown [S2].

All f(x) tokens are ERC-20, with fxUSD native to Ethereum and additionally available on Arbitrum, BSC, Optimism, and Polygon via LayerZero bridging [S8]. fxUSD is minted at the contract level when positions open, subject to a collateralization safety check, and settles onchain atomically except for the Stability Pool redeem cooldown [S2][S9]. Pricing uses Chainlink TWAP feeds [S10].

<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/stability-pool" },
    { id: "S3", url: "https://fx.aladdin.club/" },
    { id: "S4", url: "https://docs.aladdin.club/f-x-protocol/stability-mode" },
    { id: "S5", url: "https://docs.aladdin.club/f-x-protocol-new/f-x-2.0/fees-and-revenue" },
    { id: "S6", url: "https://fx.aladdin.club/terms-of-use" },
    { id: "S7", url: "https://docs.aladdin.club/f-x-protocol/introduction-of-fxusd/fxusd-reserve-and-risk-management" },
    { id: "S8", url: "https://docs.aladdin.club/f-x-protocol/contracts" },
    { id: "S9", url: "https://docs.aladdin.club/f-x-protocol-new/f-x-2.0/faq" },
    { id: "S10", url: "https://docs.aladdin.club/f-x-protocol-new/oracles" },
  ]}
/>


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f(x) Protocol

f(x) Protocol fxUSD (fxUSD) is a U.S. dollar stablecoin issued by f(x) Protocol.

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

fxUSD has been issued on Ethereum as an ERC-20 token since February 2024.

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