{"id":"fxusd","title":"fxUSD","content":"**fxUSD** is a decentralized, crypto-collateralized [stablecoin](https://iq.wiki/wiki/stablecoin) that operates on the [Ethereum](https://iq.wiki/wiki/ethereum) [blockchain](https://iq.wiki/wiki/blockchain) and is designed to maintain a peg to the U.S. dollar. Developed by the f(x) Protocol, it aims to provide a scalable, yield-bearing [stablecoin](https://iq.wiki/wiki/stablecoin) with deep liquidity and efficient trading mechanisms.  [\\[2\\]](#cite-id-98KvScjxjo)\n\n## Overview\n\nfxUSD was created as part of the f(x) Protocol, an ecosystem developed with support from AladdinDAO. The [stablecoin's](https://iq.wiki/wiki/stablecoin) primary objective is to offer a decentralized alternative to centralized [stablecoins](https://iq.wiki/wiki/stablecoin) by integrating features such as built-in yield generation and zero-slippage swaps for certain asset pairs within its ecosystem. The protocol's design emphasizes capital efficiency and robust peg stability through a fully collateralized model. [\\[1\\]](#cite-id-1LL5JNURan)\n\nUnlike algorithmic stablecoins, which rely on complex algorithms and a secondary token to maintain their peg, fxUSD is fully backed by crypto assets. The protocol's documentation explicitly distinguishes fxUSD from models like the former Terra/LUNA system, highlighting that every fxUSD token is collateralized by assets held within the protocol. The core assets used for [collateral](https://iq.wiki/wiki/collateral) are Lido's [staked Ether (stETH)](https://iq.wiki/wiki/lido-staked-ethereum-steth) and [Wrapped Bitcoin (WBTC)](https://iq.wiki/wiki/arbitrum-bridged-wbtc). The system is designed to automatically grow its liquidity by leveraging the value provided to the underlying [Liquid Staking Derivatives (LSDs)](https://iq.wiki/wiki/lsdfi) that back the [stablecoin](https://iq.wiki/wiki/stablecoin). [\\[1\\]](#cite-id-1LL5JNURan)  [\\[2\\]](#cite-id-98KvScjxjo) [\\[7\\]](#cite-id-3rOGOSWSyO)\n\n## Tokenomics\n\nThe max supply is uncapped, as new fxUSD can be [minted](https://iq.wiki/wiki/minting) whenever users deposit [collateral](https://iq.wiki/wiki/collateral) to open leveraged positions. The total supply is determined by the total debt issued against the [collateral](https://iq.wiki/wiki/collateral) held by the protocol. [\\[2\\]](#cite-id-98KvScjxjo)\n\n### Governance and Token Structure (fxUSD)\n\nfxUSD does not function as a governance token. It is designed solely as a collateral-backed stablecoin within the f(x) Protocol. Its role is limited to value stability, liquidity, and participation in system mechanisms.\n\n### Token Utilities\n\n* fxUSD serves primarily as the stable asset of the protocol. Holders can:\n  * Redeem it for underlying collateral according to protocol rules.\n  * Deposit it into the Stability Pool, where fxUSD is used to cover system debt from liquidations and may receive returns from collateral proceeds or protocol fees.\n* fxUSD itself does not grant voting rights or governance privileges.\n\n### Supply and Issuance\n\n* fxUSD is minted when users deposit approved collateral (such as liquid staking tokens) into the protocol.\n* Minting is paired with the creation of leveraged exposure (e.g., xPOSITION or sPOSITION), meaning the fxUSD supply is directly tied to user demand for leverage within the protocol.\n* There is no fixed maximum supply; issuance expands or contracts depending on collateral deposits and redemptions.  [\\[5\\]](#cite-id-meVQLI285M) [\\[6\\]](#cite-id-b7H05tZw8l)\n\n## Market and Trading\n\nfxUSD is primarily traded on decentralized exchanges (DEXs) on the [Ethereum](https://iq.wiki/wiki/ethereum) network. The most active trading venues include:\n\n* Fluid [(Ethereum)](https://iq.wiki/wiki/ethereum)\n* Curve [(Ethereum)](https://iq.wiki/wiki/ethereum)\n\nCommon trading pairs for fxUSD include swaps with other [stablecoins](https://iq.wiki/wiki/stablecoin) such as [USDC](https://iq.wiki/wiki/usdc), [GHO](https://iq.wiki/wiki/gho-gho), msUSD, and [eUSD](https://iq.wiki/wiki/eusd). [\\[2\\]](#cite-id-98KvScjxjo)","summary":"fxUSD by f(x) Protocol is a decentralized, non-algorithmic stablecoin pegged to the USD. Fully collateralized on Ethereum by crypto assets like stETH, it offers built-in yield and zero-slippage swaps.","images":[{"id":"QmfCbe9e3ZJta669EtS159SedWVXWiut7cUVgZa5xSGxeX","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[{"id":"Stablecoins"},{"id":"Ethereum"},{"id":"Protocols"},{"id":"Organizations"},{"id":"Blockchains"}],"media":[],"metadata":[{"id":"references","value":"[{\"id\":\"1LL5JNURan\",\"url\":\"https://fxprotocol.gitbook.io/fx-docs/faq/is-fxusd-an-algorithmic-stablecoin\",\"description\":\"f(x) Protocol FAQ\",\"timestamp\":1760883536092},{\"id\":\"98KvScjxjo\",\"description\":\"Coin Gecko: fxUSD\",\"timestamp\":1760883626346,\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\"},{\"id\":\"event-fxusd-all-time-low-price-link\",\"description\":\"Event link\",\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\",\"timestamp\":1760883536261},{\"id\":\"event-fxusd-all-time-high-price-link\",\"description\":\"Event link\",\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\",\"timestamp\":1760883536261},{\"id\":\"meVQLI285M\",\"description\":\"f(x) Protocol Gitbook: Protocol Revenue & Distribution\",\"timestamp\":1760883994878,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/earn-with-f-x/protocol-revenue-and-distribution\"},{\"id\":\"b7H05tZw8l\",\"description\":\"f(x) Protocol Gitbook: Key Functions of f(x)\",\"timestamp\":1760884031210,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/f-x-protocol-mechanisms/key-functions-of-f-x\"},{\"id\":\"3rOGOSWSyO\",\"description\":\"f(x) Protocol Gitbook: Core Products of f(x) Protocol\",\"timestamp\":1760884283228,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/overview/core-products-of-f-x-protocol\"}]"},{"id":"website","value":"https://fx.aladdin.club"},{"id":"references","value":"[{\"id\":\"1LL5JNURan\",\"url\":\"https://fxprotocol.gitbook.io/fx-docs/faq/is-fxusd-an-algorithmic-stablecoin\",\"description\":\"f(x) Protocol FAQ\",\"timestamp\":1760883536092},{\"id\":\"98KvScjxjo\",\"description\":\"Coin Gecko: fxUSD\",\"timestamp\":1760883626346,\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\"},{\"id\":\"event-fxusd-all-time-low-price-link\",\"description\":\"Event link\",\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\",\"timestamp\":1760883536261},{\"id\":\"event-fxusd-all-time-high-price-link\",\"description\":\"Event link\",\"url\":\"https://www.coingecko.com/en/coins/f-x-protocol-fxusd\",\"timestamp\":1760883536261},{\"id\":\"meVQLI285M\",\"description\":\"f(x) Protocol Gitbook: Protocol Revenue & Distribution\",\"timestamp\":1760883994878,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/earn-with-f-x/protocol-revenue-and-distribution\"},{\"id\":\"b7H05tZw8l\",\"description\":\"f(x) Protocol Gitbook: Key Functions of f(x)\",\"timestamp\":1760884031210,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/f-x-protocol-mechanisms/key-functions-of-f-x\"},{\"id\":\"3rOGOSWSyO\",\"description\":\"f(x) Protocol Gitbook: Core Products of f(x) Protocol\",\"timestamp\":1760884283228,\"url\":\"https://fxprotocol.gitbook.io/fx-docs/overview/core-products-of-f-x-protocol\"}]"},{"id":"github_profile","value":"https://github.com/AladdinDAO"},{"id":"twitter_profile","value":"https://twitter.com/protocol_fx"},{"id":"telegram_profile","value":"https://t.me/AladdinDAO"},{"id":"discord_profile","value":"https://discord.gg/D8znPnRqZ6"},{"id":"medium_profile","value":"https://medium.com/@protocol_fx_667"},{"id":"youtube_profile","value":"https://www.youtube.com/channel/UCaQaNdQo_j4gbEyqPkKuj_w"},{"id":"contract_url","value":"https://etherscan.io/token/0x085780639cc2cacd35e474e71f4d000e2405d8f6"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/f-x-protocol-fxusd"},{"id":"commit-message","value":"\"Feat: Create wiki article for fxUSD, detailing its overview, tokenomics, and market data.\""}],"events":[{"id":"9271a255-be4f-4463-ba21-c5563e1b8197","date":"2024-03","title":"fxUSD Launch","type":"CREATED","description":"f(x) Protocol launches its decentralized stablecoin, fxUSD, on the Ethereum network, backed by crypto assets.","link":null,"multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"dd8479aa-f1df-4783-acc4-b61a6a23a8dd","date":"2024-12","title":"fxUSD All-Time Low Price","type":"DEFAULT","description":"The price of fxUSD reached its all-time low of $0.9531, testing its peg stability shortly after launch.","link":"https://www.coingecko.com/en/coins/f-x-protocol-fxusd","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"id":"dc0c0e7d-d90b-4bde-aa16-1488fe835ece","date":"2025-01","title":"fxUSD All-Time High Price","type":"DEFAULT","description":"The price of fxUSD reached its all-time high of $1.03, demonstrating market demand and temporary deviation from its peg.","link":"https://www.coingecko.com/en/coins/f-x-protocol-fxusd","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":[],"speakers":[]},"operator":{"id":"0x4a2bC97afBF41a2Cbf4b4628F63420682Ff4CF2a"}}