Felix feUSD

feUSD is a USD-pegged stablecoin minted on HyperEVM via the Felix protocol. It is issued when users deposit eligible collateral into Troves and borrow against it under a fixed-rate model. The token is fully backed by over-collateralised crypto assets managed by smart contracts.

feUSD is used within the Felix system for several functions:

• Debt issuance: Users mint feUSD as debt against crypto collateral.
• Stability pool participation: Holders can deposit feUSD to absorb undercollateralised debt and receive liquidated collateral.
• DeFi integrations: feUSD is designed to be composable within Hyperliquid-native DeFi protocols, including decentralised exchanges and money markets.
• Redemptions: Mint Users may redeem feUSD for collateral subject to protocol-defined constraints and compliance requirements.

All uses are enforced by smart contract logic and subject to predefined caps and security parameters.

Fixed-Rate Borrowing

• Users select an interest rate at the time of opening a Trove.
• The rate remains fixed for the life of the loan.
• Repayment includes principal and accumulated interest, tracked per-second.

Stability Pool

• Acts as the first line of defence during liquidation events.
• feUSD deposited into the pool is used to cancel out undercollateralised debt.
• In return, depositors receive a proportional share of the liquidated collateral.

Risk Parameters

• Per-asset caps limit the total feUSD minted against each type of collateral.
• A global mint cap enforces a ceiling across all collateral types.
• Liquidation thresholds are enforced based on individual collateral ratios.

Mint Controls and Safeguards

• Troves cannot be opened below minimum collateral ratios.
• Transactions involving minting or redemption are bounded by block-level caps.
• Smart contracts implement safeguards to mitigate price manipulation and front-running risks.

HyperEVM Compatibility

• All protocol functions operate on Hyperliquid Layer-1 infrastructure.
• Felix integrates with EVM tooling and contract standards.
• Interoperability with HyperEVM-native protocols enables secondary use of feUSD.