Victoria d’Este
Printed: Could 16, 2025 at 11:11 am Up to date: Could 16, 2025 at 1:40 pm
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Could 16, 2025 at 11:11 am
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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 methods.
What if you happen to may get leverage with out borrowing prices, and keep totally on-chain with minimal threat? 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 methods.
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 12 months after which lose quite a lot of worth in early 2018. I type of misplaced monitor of it and went again to crypto throughout DeFi summer time. I used to be actually concerned about 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 time, 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 answerable for them. That sense of duty is one thing I preferred quite a bit.
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 threat—it’s very thrilling. That’s how I acquired into DeFi.
I additionally began being concerned with a bunch known as DeFi France—as a result of, as you may hear, I’m from France. I contributed by organizing meetups about DeFi in France, and that’s how I acquired 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 accurately—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 thought got here to create one thing new. f(x) was born from that. It brings a brand new strategy to the stablecoin downside—a really capital-efficient stablecoin that’s really decentralized, largely 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 have a look at it, fxSAVE is the primary yield amongst stablecoin methods.
You possibly can see fxSAVE has one of the best 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 applications that create pretend incentives. It’s only a sustainable protocol that earns revenue and distributes it to the secure stakers and token holders.
What methods may entice conventional finance customers to fxUSD and Expositions?
For fxUSD, it’s about having a robust risk-reward ratio. TradFi traders, and actually any investor, are on the lookout for that. Being uncovered to a decentralized stablecoin means you don’t depend on any particular person or firm. You don’t have to belief anybody—every part is on-chain, and you may 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 threat. We’re in a position to ship very aggressive yields, and it’s all on-chain. Which means higher yield, decrease threat.
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 price, one-time closing price. That’s it.
That is nice for BTC miners, for instance—they’ve huge BTC publicity and don’t wish to promote. They may want capital however nonetheless wish to maintain their BTC. The identical goes for ETH whales, protocols, and so forth. If you wish to keep uncovered at a minimal price, you need to use f(x).
How can the protocol incentivize long-term engagement with out gamification or level methods?
We don’t do the gamified stuff. We’ve 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 methods to draw TVL. It’s been rising steadily.
Our focus is on sustainable and natural growth. However, there’s a type of long-term engagement inbuilt by means of tokenomics. We’ve veTokenomics, which is analogous to Curve or Pendle. So principally, you possibly can increase your yield by locking tokens for longer.
What are the dangers of increasing collateral varieties past staked ETH, and the way are they mitigated?
We not solely take staked ETH but additionally Wrapped BTC. However we’re really not planning so as to add extra collateral proper now. Wrapped BTC already appears like a compromise. We’d reasonably have a extra decentralized Bitcoin model—like tBTC, as an example—however it’s not liquid sufficient but.
We wish fxUSD to be as resilient as potential, so we’re protecting it easy for now. Although, on BASE—which is much less decentralized by design—we’d discover extra unique collaterals. That is dependent upon liquidity. We want to verify costs can’t be manipulated.
What are the alternatives for cross-chain enlargement, like Arbitrum or Optimism?
There are many alternatives. However once more, we’re a small crew—we are able to’t be in every single place. The following step for us is launching on BASE. That ought to occur in a few weeks.
BASE will enable for greater leverage. Proper now, on mainnet, customers can go as much as 7x leverage with minimal liquidation threat and no funding prices. On BASE, we may go even greater and perhaps add new collateral too.
We’re not planning to deploy on different chains ourselves proper now, however we’re blissful to see others fork f(x). One severe crew is engaged on a fork of BNB Chain utilizing Lista BNB as collateral. It appears to be like promising, particularly because the collateral yield is excessive.
What sorts of recent monetary merchandise could possibly be constructed on high of f(x)Protocol?
Truthfully, the potential is big. I most likely can’t even think about every part that’s potential. However for certain there are alternatives for price arbitrage, since we provide leverage with out borrowing prices.
You might 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 initiatives are integrating FX into their very own methods, too.
How will RWAs reshape DeFi, and what function can f(x)Protocol play?
RWAs are bringing conventional belongings on-chain and altering how stablecoins work. Loads 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 totally perceive. And sooner or later, that belief breaks. It at all times does.
That provides us a strategy to stand out. However there’s synergy too—RWA initiatives can profit from on-chain yield by means of f(x). Nonetheless, we present that you just don’t want RWAs to create sustainable, scalable stablecoins. That’s the entire concept—f(x) challenges the idea that decentralized stablecoins can’t scale.
What function will AI play in DeFi, notably for protocols like yours?
We strongly imagine AI will play a much bigger and greater function, not in shifting funds, however in making funding selections. As extra AI brokers allocate capital, they’ll naturally lean towards f(x). Why? As a result of we provide low threat and excessive yield.
People lose cash largely as a result of emotion. AIs don’t have that downside. They’ll simply select one of the best risk-reward setups—and that’s what f(x) delivers. It’s on-chain, dependable, and constant. Many of the different “yield-bearing” stablecoins nonetheless rely upon centralized asset managers or opaque methods. It’s a no brainer that AI will select f(x).
What developments are you seeing in decentralized stablecoins?
RWA-backed stablecoins are enormous proper now. Additionally, we’re seeing an increasing number of wrappers—tokens that wrap different stablecoins and name themselves yield-bearing. I feel these protocols will assist develop fxUSD’s TVL, as a result of we provide a sustainable yield with low threat. All the things’s on-chain, and so they 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 acquired 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 help lengthy leverage (as much as 7x) proper now. We additionally wish to let customers mint the stablecoin straight and use the protocol like a daily CTP. That’s what’s coming quickly.
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About The Creator
Victoria is a author on a wide range of know-how matters 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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Victoria d’Este
Victoria is a author on a wide range of know-how matters together with Web3.0, AI and cryptocurrencies. Her intensive expertise permits her to jot down insightful articles for the broader viewers.
