Summary
Diversifying treasury to fETH a decentralized reserve backed stablecoin FIAT & RWA resistant.
Background
Background
Aladdin DAO first created f(x) protocol when USDC depegged in March 2023. As a protocol, they couldn’t face such exposure to RWA anymore.
They created fETH, a floating stablecoin that only reflects 10% of ETH’s volatility, and xETH, a very volatile token that absorbs the rest of ETH’s volatility.
Holding fETH allows to keep a little exposure to Ethereum’s economy while being stable enough to handle day-to-day operations.
fETH also is as liquid as its collateral (stETH) since it can be redeemed anytime at oracle price.
As a DAO it would prevent you from events like the Silicon Valley Bank crash and USD devaluation plus sending a strong signal that decentralized alternatives exist.
I’d be happy to address all relevant questions regarding to f(x) protocol’s design in this forum thread and/or during an AMA.
Documentation
- Website: https://fx.aladdin.club/home/
- Docs: https://docs.aladdin.club/f-x-protocol
- Other relevant links on demand.
Proposal
According to DeFiLlama, Aura’s DAO is actually exposed to USDC by 1,13 m USD.
I suggest allocating 20% of that amount to fETH, which would result in swapping
226 000€ USDC to fETH.
Specification
Once the proposal is approved the DAO’s multisig could initiate a swap using either Cow Swap or Open Ocean infra to find the best route from USDC to fETH.
Using f(x) protocol directly would require swapping to stETH first.
