Timeswap launches a market for fETH and xETH

ft. Protocol f(x)

Introduction

The demand for leverage and stablecoins are the two things DeFi degens cannot live without. AladdinDAO’s Protocol f(x) serves both of these purposes using a single mechanism. The two products offered by Protocol f(x), namely Fractional ETH (or fETH) and Leveraged ETH (or xETH) are two innovatively different sides of the same coin. Timeswap is launching a money market pool where xETH can be used as collateral to borrow fETH stablecoin, whilst enabling fETH lenders to earn fixed yields.

What is Protocol f(x)?

Protocol f(x), incubated by AlladinDAO, enables the minting of two types of volatility products for ETH holders. Given the current landscape of stablecoins majorly dominated by fiat-backed coins which pose a high risk of centralisation, f(x) protocol offers fETH, a token which removes more than 90% of the volatility from ETH.

fETH: Low volatility ETH

fETH is a stablecoin which can be minted completely using ETH. Whilst it displays the properties of a stablecoin, it is not hard pegged to the USD. This shows that the price of fETH reflexes ETH, but its volatility is capped at 10%. You can look at fETH as a low beta on ETH.

xETH: High volatility ETH

On the other hand, xETH is a leveraged perpetual contract of ETH. xETH minters/holders get leveraged exposure to the price of ETH by taking on the volatility which was clipped from fETH. While xETH is a leveraged token, it doesn’t hold any risk of liquidation. In case ETH falls dramatically in price, the price of xETH can go to zero.

This innovative design enables them to serve two sides of the market in a unique manner. As of writing, more than $3.9M of xETH and $3.7M of fETH circulating in the market.

Protocol f(x) X Timeswap

The Timeswap AMM, owing to its oracleless design, is capable of creating money markets for any token pair. These isolated pools help borrowers unlock fixed-term, non-liquidatable loans by locking their collateral tokens. The lenders on the other hand get access to fixed yields.

With the all-new fETH/xETH pool launch, we are enabling xETH to become a superfluid collateral. Now, the xETH holders can borrow fETH at a dirt-cheap borrow rate while staying isolated from any liquidation risk. This also unlocks many yield farming and leveraging opportunities.

Unlock the following using the xETH/fETH pool:

• Borrow fETH at a fixed 2% APR
• Use the borrowed fETH to accumulate more xETH, giving a leveraged exposure to xETH.
• No liquidation risk for 4 weeks.
• Lend fETH to earn fixed 2% yields

Access non-liquidatable loans for your xETH here -> [dapp link]

Pool Details:

• Network: Arbitrum
• Collateral asset: xETH
• Supplied/borrowable asset: fETH
• Transition price: 0.5 xETH/fETH (~50% LTV at current prices)
• Maturity: 4 weeks
• Initial APR: 2%

Follow us:

Discord: https://discord.gg/timeswap
Twitter: https://twitter.com/TimeswapLabs
Medium: https://medium.com/Timeswap
Telegram: https://t.me/Timeswap

Time Is Money ⏳