Summary
This proposal aims to bootstrap the first fxUSD-denominated yield strategy by curating an Aladdin DAO vault on Euler. It also establishes a strong alignment with the 9Summits and f(x) Protocol.
Motivation
f(x) Protocol successfully managed to establish a new stablecoin trilemma paradigm by bootstrapping fxUSD to over $120M circulating supply. What drives stablecoin adoption is its usage. There is currently no fxUSD-only denominated yield strategy.
By creating and curating an fxUSD-denominated vault on Euler, 9Summits aims to contribute to establishing fxUSD as the go-to decentralized stablecoin in the ecosystem.
fxUSD would have inherent organic yield without direct exposure to USDC or any other stablecoin.
9Summits is a curation structure managing over $80M on Lagoon Finance and Morpho mostly. We have always been contributing to f(x) Protocol by supplying liquidity, being the biggest USDC supplier on the Morpho fxSAVE market, or, more recently, by creating and curating the Pendle YT vault or the Plasma fxSAVE strategy on Lagoon.
9Summits recently created an fxSAVE/fxUSD market on Euler, establishing, thanks to the high price correlation between fxSAVE and fxUSD, an unseen level of capital efficiency for loopers.
We also created an Earn vault strategy on Euler that will allocate fxUSD to all the fxUSD-denominated markets we aim to build in the future.
We are considering adding other collaterals in the future, such as the PTs, FXN, aFXN, asdCRV, asdPENDLE, and afCVX, to be confirmed.
Bootstrapping a lending market takes time; this is why we propose bootstrapping the market with $100,000 USD from 9Summits’ AUM.
To demonstrate our strong alignment with the f(x) Protocol, 9Summits will utilize 90% of the Euler curation fees to purchase $FXN and/or its derivatives, locking them to earn from the protocol’s generated revenue.
Moreover in case of any future incentive or grant perceived from Euler, it would be used as incentives for the Earn vault.
Proposal
Our goal is to grow the Earn vault to $5M and sustain it for at least two months. That will leave us enough time to add other collaterals and let the organic yield settle, making the vault sustainable.
We are asking the f(x) Protocol DAO to contribute to incentivising the Earn vault to facilitate the bootstrapping.
Considering a $5M TVL vault, with an average organic yield of 9% and a target APR of 14% to make it competitive in the early days, the overall incentive budget would be $41000.
Incentive Budget = TVL × (Target APR − Organic APR) × Incentive Period (in months) / 12
We committed Euler to match f(x) Protocol’s incentive, meaning f(x) would only have to cover half of it.
We kindly request that the DAO incentivize the Euler Earn vault with 289 FXN, to be distributed over at least two months.
Expected Outcomes
The project would have multiple benefits:
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Creating a 100% fxUSD yield strategy
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Creating an fxUSD supply sink, removing fxUSD from the stability pool, thus attracting more USDC, resulting in less frequent funding costs.
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Offer a better capital efficiency to Aladdin DAO products users
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Create a continuous buying pressure on $FXN
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Establishing deep liquidity for fxUSD and fxSAVE on Euler will facilitate low-slippage trading between them and other DeFi assets through Euler DEX, enhancing both user experience and capital efficiency.
Useful links
Use fxSAVE as collateral on Euler
https://app.euler.finance/positions/0x85F948273BDc705BaCD29BF5A2c87067E8d9d63a/0xB6761Fb99062f6dBc09395f6F16dF239720017db?network=ethereum
Supply fxUSD and Earn native yield on fxUSD on Euler
https://app.euler.finance/earn/0x283aC2b5f5c830E8a7Aac4ED160c47fA29F5CcC1?network=ethereum
Polling Period
The polling process begins now and will end at 00:00 UTC on 11/10/2025.
If Quorum is reached, a Snapshot Vote will be put up at 00:00 UTC on 11/10/2025.
Poll
- For distributing 289 FXN to 9Summits for vault incentivization if this proposal is accepted.
- Against distributing 289 FXN to 9Summits for vault incentivization if this proposal is rejected.