[TEMP CHECK] Onboard fxSAVE to Aave V3 Core Instance

Governance New Asset
1

[TEMP CHECK] Onboard fxSAVE to Aave V3 Core Instance

Author: ACI (Aave Chan Initiative)

Date: 2025-06-23

Summary

This TEMP CHECK proposes the onboarding of f(x) Protocol’s token into the AAVE ecosystem. f(x) Protocol is an innovative DeFi protocol that creates decentralized stablecoins and leveraged tokens by splitting yield-bearing assets, offering unique opportunities for capital efficiency and yield optimization.

Motivation

f(x) Protocol launched in September 2023 and introduces a new paradigm for decentralized stablecoins, providing returns on stable assets collateralized by lower-risk derivatives. The protocol operates through two main versions:

V1 Features:

  • Splits any yield-bearing asset into two tokens: a stablecoin and a leveraged xToken
  • Offers stablecoins including fETH, rUSD, btcUSD, and cvxUSD
  • fETH captures only 10% of ETH’s volatility while xToken absorbs the rest

V2 Features:

  • Delivers exceptionally high and sustainable yields derived from PERP trading commissions
  • USD delta-neutral stability pool that avoids counterparty risk
  • Up to 10x leverage on ETH with minimal liquidation risk through xPOSITION

Strategic Benefits

  1. Diversified Yield Sources: Access to f(x) Protocol’s unique yield generation mechanisms, including stETH staking rewards, perpetual trading fees, and FXN emissions.
  2. Risk-Adjusted Returns: The protocol’s stability mechanisms ensure 100% collateralization with tier-1 DeFi assets, primarily Lido’s stETH, aligning with fxSAVE’s risk management principles.
  3. Capital Efficiency: The f(x) invariant ensures unparalleled capital efficiency while maintaining full collateralization, maximizing returns per unit of capital deployed.

Specification

Risk Parameters will be provided by Risk Service Providers and proposal will be updated accordingly at ARFC stage.

Next Steps

  1. Publication of TEMP CHECK to gather community & service providers feedback, and escalate to TEMP CHECK Snapshot.
  2. Publication of a standard ARFC, if TEMP CHECK Snapshot passed, to continue collecting community & service providers feedback before escalating proposal to ARFC snapshot stage.
  3. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Disclaimer

The current proposal has been powered by Skywards. ACI is not afiliated with f(x) Protocol and has not received compensation for the creation and edit of this proposal.

Copyright

Copyright and related rights waived via CC0.

1 Like
2

The current proposal has been escalated to TEMP CHECK Snapshot.

Vote will start tomorrow, we encourage everyone to participate.