Abstract:
This proposal aims to retire btcUSD and introduce wBTC as collateral for fxUSD, streamlining f(x) Protocol’s product lineup and focusing development on the newly launched v2. Additionally, it proposes reallocating the 5% FXN emissions currently directed to the btcUSD pool, redirecting them to the fxUSD/USDC Curve pool instead. We also propose allocating 50% of total FXN emissions to the same pool, further strengthening liquidity and allowing us to meet the high demand of xPOSITIONs.
Motivation:
In August 2023, AladdinDAO released version 1.0 of the f(x) Protocol. This initial release on mainnet enabled users to trade ETH with variable leverage using x-tokens. Shortly after, btcUSD was introduced, allowing users to gain leverage on BTC. However, as v1 does not support fixed leverage, btcUSD’s scalability was limited by stablecoin demand.
With the launch of f(x) Protocol v2, Aladdin now has the opportunity to offer a fixed leverage option for BTC using wBTC as collateral. Retiring btcUSD and adding wBTC as collateral for fxUSD will streamline our product suite, eliminate redundancies, and allow us to better focus on f(x) v2’s growth and development.
Proposal:
To streamline the protocol’s offerings and enhance user access to fixed leverage on BTC, the core team proposes retiring btcUSD and integrating wBTC as collateral for fxUSD on the ETH mainnet. This transition will enable the protocol to optimize resource allocation, strengthen f(x) Protocol v2, and align with our long-term vision. In addition, this proposal will reallocate the 5% FXN emissions currently directed to btcUSD, increasing total emissions to 50% for the fxUSD/USDC pool to further enhance liquidity and keep up with xPOSITION demand.
Key changes:
- Redirect 5% of the FXN emissions currently allocated to the btcUSD stability pool to the fxUSD/USDC Curve pool.
- Set FXN emission to the fxUSD/USDC pool to 50% of total emissions.
- Encourage users of the btcUSD stability pool to transition to either the v2 stability pool or the fxUSD/USDC Curve pool.
- Retire btcUSD
- Add wBTC as collateral to fxUSD on v2
This adjustment aligns with f(x) Protocol v2’s roadmap, streamlines product offerings, and enhances our ability to focus on v2’s growth moving forward.
Options for the veFXN Community:
Option 1: Retire btcUSD and integrate wBTC as collateral for fxUSD. Reallocate 5% FXN emissions to the fxUSD/USDC pool and increase total FXN emissions to 50% for the same pool.
Option 2: Retain btcUSD and do not add wBTC as collateral for fxUSD.
- Retire btcUSD and integrate wBTC as collateral for fxUSD. Reallocate 5% FXN emissions to the fxUSD/USDC pool and increase total FXN emissions to 50% for the same pool.
- Retain btcUSD and do not add wBTC as collateral for fxUSD.