In Temporary
Cyrille Brière discusses f(x)Protocol’s merchandise like fxSAFE and fxUSD, providing leverage with out borrowing prices and a scalable, decentralized finance path with out conventional techniques.
What if you happen to might get leverage with out borrowing prices, and keep absolutely on-chain with minimal danger? On this interview, Cyrille Brière, contributor at f(x)Protocol, explains how the challenge is answering these questions with merchandise like fxSAVE and fxUSD, whereas paving a path for scalable, decentralized finance with out counting on conventional techniques.
Are you able to share your journey into Web3?
I purchased my first crypto in 2017. I noticed them explode on the finish of the yr after which lose a whole lot of worth in early 2018. I type of misplaced monitor of it and went again to crypto throughout DeFi summer season. I used to be actually keen on DeFi at first to make a yield on stablecoins as a result of I wasn’t very comfy with volatility. I wished to make a yield with stablecoins.
In order that’s what I did throughout DeFi summer season, and there have been some fairly loopy yields at the moment. And by doing so, I fell in love with the DeFi ethics. I beloved the paradigm shift—proudly owning your belongings and being accountable for them. That sense of duty is one thing I appreciated so much.
And simply how thrilling the entire ecosystem is, because of being permissionless, and the way anybody can construct on high of anybody. I like that. There’s at all times new stuff coming, extra environment friendly issues, higher yields, decrease danger—it’s very thrilling. That’s how I bought into DeFi.
I additionally began being concerned with a gaggle known as DeFi France—as a result of, as you would possibly hear, I’m from France. I contributed by organizing meetups about DeFi in France, and that’s how I bought concerned and began contributing to DeFi protocols too.
What impressed the creation of f(x)Protocol, and what issues is it making an attempt to resolve?
First, I ought to say—I didn’t create f(x)Protocol. I joined the challenge later as a contributor. However what impressed it within the first place was the USDC depeg in 2023—if I recall appropriately—as a result of crash of Silicon Valley Financial institution.
At that time, there simply weren’t many choices on the time. That’s when the concept got here to create one thing new. f(x) was born from that. It brings a brand new strategy to the stablecoin drawback—a really capital-efficient stablecoin that’s actually decentralized, principally uncovered to decentralized belongings.
How can fxSAVE be positioned because the go-to DeFi financial savings product for stablecoin holders?
I imagine it already is. I don’t know if I shared the hyperlink to stableyields.information within the doc I made for you, however if you happen to take a look at it, fxSAVE is the primary yield amongst stablecoin methods.
You possibly can see fxSAVE has the perfect yield, higher than many others. So, how is it the go-to? As a result of it’s a stablecoin that earns. The important thing with fxSAVE is that the yield is natural. It’s not only a excessive yield—it’s sustainable. It comes solely from the income generated by the protocol.
No token inflation. No fancy factors packages that create faux incentives. It’s only a sustainable protocol that earns revenue and distributes it to the steady stakers and token holders.
What methods might entice conventional finance customers to fxUSD and Expositions?
For fxUSD, it’s about having a robust risk-reward ratio. TradFi buyers, and actually any investor, are in search of that. Being uncovered to a decentralized stablecoin means you don’t depend on any particular person or firm. You don’t must belief anybody—the whole lot is on-chain, and you’ll monitor it on a regular basis. You possibly can even automate stuff to remain secure.
So utilizing fxUSD is a no brainer, by way of danger. We’re capable of ship very aggressive yields, and it’s all on-chain. Meaning higher yield, decrease danger.
As for xPOSITIONs, what we provide is capital effectivity. You possibly can leverage your ETH or BTC with out borrowing or funding prices. Only a one-time opening payment, one-time closing payment. That’s it.
That is nice for BTC miners, for instance—they’ve massive BTC publicity and don’t wish to promote. They could want capital however nonetheless wish to preserve their BTC. The identical goes for ETH whales, protocols, and so forth. If you wish to keep uncovered at a minimal price, you should utilize f(x).
How can the protocol incentivize long-term engagement with out gamification or level techniques?
We don’t do the gamified stuff. We’ve got a token and emissions, and customers can select in the event that they wish to earn actual yield or emissions. However we don’t want tips to draw TVL. It’s been rising steadily.
Our focus is on sustainable and natural improvement. However, there’s a type of long-term engagement in-built by means of tokenomics. We’ve got veTokenomics, which has similarities to Curve or Pendle. So principally, you’ll be able to increase your yield by locking tokens for longer.
What are the dangers of increasing collateral sorts past staked ETH, and the way are they mitigated?
We not solely take staked ETH but in addition Wrapped BTC. However we’re truly not planning so as to add extra collateral proper now. Wrapped BTC already seems like a compromise. We’d reasonably have a extra decentralized Bitcoin model—like tBTC, for example—but it surely’s not liquid sufficient but.
We would like fxUSD to be as resilient as attainable, so we’re holding it easy for now. Although, on BASE—which is much less decentralized by design—we would discover extra unique collaterals. That depends upon liquidity. We’d like to verify costs can’t be manipulated.
What are the alternatives for cross-chain growth, like Arbitrum or Optimism?
There are many alternatives. However once more, we’re a small group—we are able to’t be all over the place. The subsequent step for us is launching on BASE. That ought to occur in a few weeks.
BASE will enable for increased leverage. Proper now, on mainnet, customers can go as much as 7x leverage with minimal liquidation danger and no funding prices. On BASE, we might go even increased and possibly add new collateral too.
We’re not planning to deploy on different chains ourselves proper now, however we’re completely satisfied to see others fork f(x). One severe group is engaged on a fork of BNB Chain utilizing Lista BNB as collateral. It appears promising, particularly for the reason that collateral yield is excessive.
What sorts of latest monetary merchandise could possibly be constructed on high of f(x)Protocol?
Actually, the potential is large. I most likely can’t even think about the whole lot that’s attainable. However for positive there are alternatives for charge arbitrage, since we provide leverage with out borrowing prices.
You would carry trades utilizing f(x) for low-cost publicity as a substitute of holding a spot. There are protocols already utilizing FXUSD, particularly the regular yield methods. Different stablecoin tasks are integrating FX into their very own techniques, too.
How will RWAs reshape DeFi, and what position can f(x)Protocol play?
RWAs are bringing conventional belongings on-chain and altering how stablecoins work. Lots of them are backed by off-chain belongings like T-bills. That creates reliance on human elements, on corporations we don’t know, regulated in methods we don’t absolutely perceive. And in some unspecified time in the future, that belief breaks. It at all times does.
That provides us a method to stand out. However there’s synergy too—RWA tasks can profit from on-chain yield by means of f(x). Nonetheless, we present that you simply don’t want RWAs to create sustainable, scalable stablecoins. That’s the entire concept—f(x) challenges the assumption that decentralized stablecoins can’t scale.
What position will AI play in DeFi, notably for protocols like yours?
We strongly imagine AI will play a much bigger and larger position, not in shifting funds, however in making funding choices. As extra AI brokers allocate capital, they’ll naturally lean towards f(x). Why? As a result of we provide low danger and excessive yield.
People lose cash principally on account of emotion. AIs don’t have that drawback. They’ll simply select the perfect risk-reward setups—and that’s what f(x) delivers. It’s on-chain, dependable, and constant. A lot of the different “yield-bearing” stablecoins nonetheless rely on centralized asset managers or opaque methods. It’s a no brainer that AI will select f(x).
What traits are you seeing in decentralized stablecoins?
RWA-backed stablecoins are big proper now. Additionally, we’re seeing increasingly wrappers—tokens that wrap different stablecoins and name themselves yield-bearing. I believe these protocols will assist develop fxUSD’s TVL, as a result of we provide a sustainable yield with low danger. Every thing’s on-chain, they usually can pull out anytime if one thing feels off.
Lastly, are you able to share the roadmap for f(x)Protocol?
We simply launched fxSAVE two weeks in the past—it’s the tokenized stability pool. It has already obtained $22 million in TVL and is rising nicely. We additionally simply bought listed on Pendle and Morpho.
Subsequent up is the BASE deployment. After that, we’re including new options—restrict orders and shorting choices for ETH and BTC, since we solely assist lengthy leverage (as much as 7x) proper now. We additionally wish to let customers mint the stablecoin straight and use the protocol like an everyday CTP. That’s what’s coming quickly.
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About The Creator
Victoria is a author on quite a lot of know-how subjects together with Web3.0, AI and cryptocurrencies. Her intensive expertise permits her to jot down insightful articles for the broader viewers.
Victoria d’Este
Victoria is a author on quite a lot of know-how subjects together with Web3.0, AI and cryptocurrencies. Her intensive expertise permits her to jot down insightful articles for the broader viewers.
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