Introducing f(x) Protocol: Pushing Yield & Leverage Barriers

f(x) Protocol offers a unique approach to both stablecoin generation and leveraged trading through its innovative f(x) invariant. This DeFi primitive splits yield-bearing assets into two distinct components:

fxUSD: A scalable decentralized stablecoin that captures sustainable on-chain real yield, providing the first USD delta-neutral strategy that harnesses leveraged real yields from perpetual trading fees, ETH staking rewards, and FXN emissions.

xPOSITION: A leveraged position delivering up to 7x leverage on ETH and BTC, with minimized liquidation risk and minimal funding costs, offering high-volatility exposure without inherent yield components.

This dual-component system enables users to choose between stable yield generation and leveraged position taking, all while maintaining 100% on-chain operations and scalability. The protocol's liquidation-protected leverage mechanism addresses one of DeFi's most persistent challenges: providing substantial leverage without exposing users to excessive liquidation risks.

RE7 Capital: Ultimate DeFi Curation

RE7 Capital brings sophisticated institutional experience to the curation of these specialized markets on Morpho. As investors and operators across decentralized ecosystems, RE7 Capital combines traditional risk management methodologies with innovative approaches to DeFi asset evaluation.

Their comprehensive approach spans three core areas:

DeFi Yield Strategies: Leveraging peer-to-peer capital allocation through open financial applications rather than traditional intermediaries, focusing on liquidity provisioning and yield optimization.

Liquid Venture Investments: Identifying and investing in teams building the decentralized internet, with particular emphasis on Decentralized Finance infrastructure and the social transformation it enables.

RE7 Labs: Applying advanced risk tooling and research capabilities to support DeFi protocols through curation and advisory services, including their proprietary DeFi rating system that evaluates smart contract and protocol risks.

RE7's DeFi rating framework provides holistic risk assessment across multiple tiers, from AAA-rated protocols offering 4.95% APY to higher-risk opportunities reaching 8.69% APY. This systematic approach to risk evaluation makes them an ideal curator for complex assets like f(x) Protocol's innovative instruments.

EO Network's Specialized Price Feeds for f(x) Assets

Issued by f(x); fxSAVE & fxBASE are the yield bearing assets acting as collateral for the PT-YT strategy on Pendle. EO has developed two critical price feeds to support f(x) Protocol's integration into Morpho's lending ecosystem:

PT-fxSAVE-30OCT2025-LinearDiscount/USD Feed

https://etherscan.io/address/0xd88070Cc971E078Dcce2c36DC521bC834c635627

This specialized feed provides accurate pricing for f(x) Protocol's principal tokens with linear discount mechanisms. The feed accounts for the time-decay characteristics inherent in principal token structures, ensuring that lending and borrowing activities on Morpho reflect the true economic value of these sophisticated instruments.

PT-fxSAVE/fxBASE Feed

https://etherscan.io/address/0xf6fdC672e95854647cFB03Be5cF95D95f3729cD7)

This feed establishes the critical pricing relationship between f(x) Protocol's savings tokens and base assets, enabling precise collateral valuation and risk management within Morpho's lending framework.

Technical Implementation: Advanced Oracle Architecture

The implementation of these price feeds requires sophisticated technical considerations to accurately reflect the complex dynamics of f(x) Protocol's innovative assets:

Principal Token Valuation: The PT-fxSAVE linear discount feed incorporates time-decay mechanisms that accurately reflect the convergence of principal tokens toward their underlying value as maturity approaches. This ensures that collateral valuations remain accurate throughout the token's lifecycle.

Yield Component Tracking: Both feeds account for the yield-generating characteristics of f(x) Protocol assets, ensuring that accrued yields are properly reflected in real-time valuations used for lending and borrowing calculations.

Leverage Position Pricing: The sophisticated pricing mechanisms account for the leverage characteristics embedded within f(x) Protocol positions, enabling appropriate risk parameter setting for these complex financial instruments.

Market Innovation Through Specialized Curation

The collaboration between EO, RE7 Capital & f(x) Protocol on Morpho brings sophisticated yield strategies to decentralized lending markets. This integration enables:

Top-Tier Risk Management: RE7 Capital's systematic approach to protocol evaluation ensures that complex f(x) Protocol assets are properly assessed and integrated with appropriate risk parameters.

Advanced Yield Strategies: Users can now access f(x) Protocol's innovative yield generation mechanisms through Morpho's trusted lending infrastructure, expanding the range of available strategies for sophisticated DeFi participants.

Leveraged Position Collateralization: The integration enables f(x) Protocol positions to function as collateral within Morpho's lending framework, creating new possibilities for capital efficiency and strategy composition.

Building on Proven Success

This expansion builds upon EO's established track record of powering specialized markets on Morpho. Previous successful integrations include:

• Gauntlet's LBTC Core Strategy: Utilizing eBTC/LBTC price feeds for EtherFi-focused lending markets

• SwissBorg's Dual Market Integration: Demonstrating multi-oracle interoperability across Bitcoin-based assets

• MEV Capital's Composite Pricing: Combining EO feeds with other oracle solutions for sophisticated asset pricing

Each implementation showcases EO's ability to provide customized oracle solutions that meet the specific requirements of complex DeFi strategies while maintaining the reliability and accuracy essential for institutional adoption.

Market Transparency and Risk Framework

Following Morpho's commitment to transparency, the f(x) Protocol markets maintain clear identification of parameters and risk profiles. RE7 Capital's curation brings institutional-grade risk assessment to these sophisticated instruments, ensuring that market participants can make informed decisions about their involvement with leveraged yield strategies.

The integration demonstrates how proper oracle infrastructure can enable the safe introduction of complex financial instruments into decentralized lending markets, expanding the boundaries of what's possible in DeFi while maintaining appropriate risk controls.

Build with EO Network

For developers interested in implementing EO Network solutions for complex asset pricing, comprehensive documentation and support resources are available:

• Custom price feed deployment: docs.eo.app

• Website: eo.app

• Community hub: link3.to/eoracle