Add fETH/crvUSD and xETH/ETH pools to the Gauge Controller


Proposal to add fETH/crvUSD and xETH/ETH factory pool to the Gauge Controller to enable users to assign gauge weight and mint CRV. f(x) Protocol is a DeFi solution that addresses the need for a scalable stable asset in the cryptocurrency space which mitigates centralization risks and capital efficiency issues (fETH). In addition f(x) creates a complementary leveraged ETH token asset, which is composable, charges charges zero funding costs to hold, and has extremely low liquidation risk (xETH). f(x) was conceived and built by Aladdin DAO.

References/Useful links:

f(x) website:

fETH token address: 0x53805A76E1f5ebbFE7115F16f9c87C2f7e633726
xETH token address: 0xe063F04f280c60aECa68b38341C2eEcBeC703ae2


Medium: f(x) Protocol – Medium

fETH/crvUSD Pool:
pool :0xE7e86c6055B964C7894d33e037eaD34F2b62795d
token :0x19033d99A7b7010157b81e5eE5A8E63A583fB735
gauge :0x4426027fEeb7d958498766A792AFE595b64bbFa1

xETH/ETH Pool:
pool: 0x053D5be7C653325B58D88B942fB2454f8Ffd8673
token: 0x16eAd9a10b1A77007E6E329B076aD1Fe97a6F7C0
gauge: 0xD491639539c7434F3a788f6C88e818e5d7a552e9

Discord: Discord

Protocol Description:

Unlike traditional stablecoins that are pegged to a specific value such as $1USD, f(x) Protocol introduces a new concept called “floating stablecoin” or fETH. fETH is not pegged to a fixed value, but rather gains or loses a fraction of the price movements of ETH. This allows fETH to hold its value well in any market condition, but still have some exposure to the long term price trend of ETH.

To achieve this stability, the f(x) Protocol creates a complementary asset called xETH, which acts as a zero-cost leveraged long ETH position. xETH absorbs the majority of the volatility of ETH price movements, thereby stabilising the value of fETH. By having xETH as a protective layer, fETH experiences only small changes in value.

The protocol aims to shift the DeFi landscape away from traditional USD stablecoins and towards assets that are more anchored in the Ethereum economy. With f(x) Protocol, the reserve is held entirely in stETH, and users can mint and redeem fETH directly using stETH or pure ETH without ever touching another stablecoin and without exposure to any RWA-backed asset.

The goal for fETH is to produce a low volatility token which is fully decentralised and Ethereum-native, minimises volatility while retaining a small exposure to the market (10%), can be minted and redeemed instantly in direct response to stablecoin demand and has maximum liquidity depth based on a multiple of demand for xETH, rather than a fraction of demand for CDPs. For xETH we create a leveraged long ETH token which is fully decentralised and Ethereum-native, is composable, with liquidity on-chain and has extremely low risk of liquidation (i.e. NAV to 0).


The key motivations for adding the fETH/crvUSD and xETH/ETH pools to Curve gauges are:

  • Increase DEX liquidity and visibility for f(x) solutions
  • Validate fETH-stable pool parameters with deeper liquidity to ensure smooth deployment of further fETH-stable pools (thanks Michael for a lot of help setting these params!)
  • An additional yield opportunity for fETH and xETH holders through LP farming;
  • Potential governance benefits for CRV and CVX tokens through f(x) Protocol’s participation in bribe markets;
  • Provide a boost in the use of decentralised stablecoins


  1. Governance: f(x) Protocol was deployed by the Aladdin core team. Aladdin continues to develop and administer f(x), progressively decentralising governance power to veFX holders. The f(x) Protocol treasury is controlled by a 6/9 multisig wallet.

  2. Oracles: f(x) uses Chainlink price feed for ETH.

  3. Audits: SECBIT f(x) Audit
    SECBIT Rebalance Pool Audit

  4. Centralization vectors: f(x) is a centralization minimized protocol.

  5. Market History: The primary price of fETH and xETH are controlled by the protocol, which sets the NAV of each such that fETH price reflects the appropriate price change (10% of ETH price change) and xETH price ensures that all protocol liabilities value adds to the reserve value. Up until now neither token has traded on the secondary market. Once secondary market liquidity deepens, arbitrage with the primary is fast and simple, so we expect good agreement.