[Temperature Check] - Allocating treasury to f(x) protocol's fETH


Diversifying treasury to fETH a decentralized reserve backed stablecoin FIAT & RWA resistant.



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.



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.


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.

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I gathered a couple of relevant links to help you DYOR but was limited in the first post.
Feel free if any question!

Welcome to the forum, brother. Are you part of the Aladdin team?


Im not core team no, just a community member helping :slight_smile:

If you don’t mind, could you have a core team member or other Aladdin community members provide some thoughts or comments on this proposal?