# Abstract Stablecoins and leverage trading are the backbone of the crypto industry.\ \ Surprisingly, most efficient approaches so far relied on a trust assumption that is the opposite of what DeFi stands for.\ \ This time is over; let's dive into f(x) Protocol's paradigm shift. ## Stablecoins Most stablecoins are either centralized, capital inefficient or have unreliable pegs.\ DeFi users, DAOs, and institutions need a scalable stablecoin that doesn't require trusting any entity.\ Moreover, they need it to provide sustainable and attractive yields. ## Leverage By design, gaining leverage exposure can be dangerous. Liquidations melt the capital of the most adventurous traders, while funding rates erode it regardless. \ Regarding decentralization, most perps are built on centralized layers or rely on centralized execution elements, while the decentralized money markets offer very low leverage options. ## The Genesis March 2023, the most trusted stablecoin across DeFi, USDC, lost its peg toward $0,86 due to the collapse of a TradFi institution: the Silicon Valley Bank.\ \ Aladdin DAO attended, noted the above points, and, drawing on their experience as Concentrator and CLever, decided to change the paradigm of stablecoins and decentralized leverage forever.\ \ f(x) Protocol V1 was released on August 2023. By splitting any yield-bearing asset into a zero-volatility asset (stablecoin) and a high-volatility asset (leveraged token), it has already created the most capital-efficient decentralized stablecoin ever while offering a zero-liquidation solution for leverage traders.\ \ But the system could constantly be improved. \ \ 16 months and $70m TVL later, f(x) Protocol now unleashed it's V2 bringing:
On the leverage side. * Up to 7x leverage on ETH and BTC * Very minimized liquidation risk thanks to the rebalancing mechanism * No funding cost under normal market conditions On the stable side, the first USD strategy: * Stays perfectly USD delta-neutral * Captures perp trading commissions * Earn enhanced stETH and WBTC yield * Has no counterparty risks * Is 100% on-chain and doesn't rely on RWA TLDR: the most attractive, scalable & sustainable, decentralized, stable yield strategy. This documentation is here for you to get all the ins and outs of f(x) Protocol. You may finds all your questions answered.