Baklava Space on FunctionX - F(x)Core Delegate Vault & FX-Swap Yield Farming Vault

Baklava Space aims to be a synthetic asset platform that allows the creation and exchange of synthetic assets. Synthetic assets are assets minted on a blockchain that mirror the price of another asset, for example, a synthetic BTC can be minted on Function X chain. The synthetic asset derived its price from price oracles and therefore exchanging synthetic assets incur minimal slippages.

As seen in the matured traditional asset markets, the synthetics and derivatives market size exceed the underlying asset market by size 10 times. We believe the same trend will happen in the blockchain market as it matures. Therefore, Baklava Space is positioning itself for the next phrase of explosive growth in the derivative and synthetic market in the blockchain space.

Below is a brief walkthrough on how synthetic assets are created in Baklava Space:



Existing LP tokens that are used for farming forms the underlying collateral for minting assets on Baklava Space. These LP tokens deposited in Baklava Space continue to earn rewards from their existing farms and Baklava Space helps to auto compound the yields.



Once LP tokens are deposited as collateral, users will have a choice to mint the stablecoin in Baklava Space by paying a minting fee. The stablecoin minted is called USB which is soft pegged to USDC.



With the USB stablecoin, users are able to mint synthetic assets in Baklava Space. These synthetic assets include for a start synthetic BTC and ETH. These synthetic positions will be hedged through MarginX. The demand for synthetics will in turn generate volume and liquidity in MarginX.



Once synthetic assets are minted within Baklava Space, they can be exchanged through the process of burn and mint. For example, synthetic btc will be burnt to exchange for synthetic ethereum which will be minted.



Once synthetic assets are minted or created, they can be placed in LP farms as liquidity to earn farming rewards.



Bava tokens will be used as collateral for the minting of synthetic assets. To reward the use of Bava tokens as collateral, stakers will be rewarded with 100% of the fees generated from the Baklava Space protocol.

In summary, Baklava Space is unlocking the asset value locked in LP in farms by allowing these LPs to be used as collateral to create synthetic assets.


1. Amount of $FX requested :

300,000 $FX

For development of cross-chain synthetic asset platform where LPs on the FX chain can be used as collateral to create synthetic assets on the FX network

If synthetic assets are created on FX chain, it will be easier to hedge the positions on MarginX as well since both are on the same chain.

2. Proposal belongs to which segments:


Fully functional synthetic asset minting on Avalanche is expected to be live by Q4 2022. The aim is to offer the functionalities on FX chain.

3. Distribution timeframe and milestones

Milestone 1 by Q4 2022 : Fully functional synthetic asset platform on Avalanche chain and collateralisation of LP from Avax to mint synthetic assets.

100k $FX required for developer expenses to start the migration to FX chain.

Milestone 2 by Q1 2023 : Fully functional synthetic asset platform on FX chain. Baklava Space to accept LPs from FX chain and create synthetic assets on FX chain.

100k $FX required for the developer expenses for the next milestone which is to migrate Bava token.

Milestone 3 by Q2 2023: Bava token to migrate to FX chain. We are envisaging a portion of Bava tokens to be burned on Avalanche and re-minted on the FX chain. Total supply of token remains the same. These Bava token will be used to support the collateral and minting needs on the FX chain.

100k $FX required for creating the liquidity for Bava tokens on FX chain.

Note: milestones are projections and serve as guidelines.


Phase I (completed)

  • Baklava Space and Bava token launched in Avalanche network allowing LP to be deposited for auto-yield compounding.
  • TVL $8m-$10m

Phase 2 (by Q4 2022)

  • Baklava Space accepts collateral for the minting of synthetic assets.
  • Real token reward and Bava staking mechanism

Phase 3 (by Q4 2023)

  • Expand to other EVM compatible networks such as FX chain
  • Liquidation vault
  • Integrate with core wallets of FX and Avax protocol
  • Transitioning to DAO governance
  • Listing of token on CEX

Phase 4 (by Q4 2024)

  • Expand synthetic asset and collaterals offering
  • Synthetic vaults where users can do carry trade
  • Cross-chain collateralization where ETH can be used as collateral for minting.

4. Description of the proposal, including the name of the proposal, mechanics of the proposal, benefits to Function X, team introduction etc.

Name: Baklava Space

Target Markets: Defi synthetic asset minting and exchange.

Projected TVL: $10m - 1st year $50m - 2nd year $200m - 3rd year

Products: - Mint stablecoin

  • Mint synthetic crypto assets
  • Stake to participate in protocol fee
  • Allow exchange of synthetic asset for another through mint/burn process

Benefits to FunctionX: Volume generated on MarginX for hedging any exposures on Baklava Space. Allow LP on FX chain to be collateralised for minting.

The Team:

Keith Yong

  • Crypto OG since 2016
  • Operations Director of Litecoin Foundation(LF), with LF since day1
  • Ex Senior Vice President in Singapore’s UOB Bank
  • Ex Head of IT of a department under Singapore’s Ministry of Finance

Marketing and community - 3 paz

Developers - 3 pax

Potential cooperations and Partnerships (both confirmed and in talks with):

  • GSR for market making
  • Chainlink for oracle pricing and cross-chain message protocol
  • Cointelegraph for marketing
  • Pangolin, TradeJoe, Kyber for LPs

5. Reasons why the project should be selected and supported and included an analysis of the competitive landscape.

Currently, the synthetic asset market is dominated by as the leader in ETH. In the other networks, there are no prominent synthetic asset projects as competitor. Therefore, having a synthetic asset project in the FX chain will offer FX chain users an additional utility not found on other chains.

In terms of fee revenue, the is mostly in the top 20 of all projects. In some days, their fee matches that of Uniswap. This illustrated the need for and demand of synthetic asset and synthetic asset exchange in the ETH ecosystem. Therefore, Baklava Space aims to be the top synthetix asset platform of the other non-ETH networks.

Unique selling point:

One key difference with our main competitor is that they are using the global debt system whereas in Baklava Space each user is responsible for his own mint.

In the global debt system, all the SNX stakers will be responsible for all the synthetic assets minted by This means that the debt level of SNX stakers changes every day and there is no certainty.

In Baklava Space, if a user mint 1 synthetic BTC he will be responsible for making sure his collateral is sufficient to cover that amount. Therefore, it offers a cleaner and much easier to understand concept.

6. Include attachments, such as GitHub links, product prototype, video, planning, blueprint, twitter, etc.

Do not delete this part
Disclaimer: This poll is just a tool to get the sentiment around this proposal and it will NOT affect on-chain voting in any way. If your proposal is getting a good sentiment around the community, it might signal that the proposal is good to go to the next phase, otherwise, some modifications might be necessary.

  • YES
  • NO
0 voters

Hi Keith,

First of all, thanks for your interest in building on the Function X ecosystem.

It is very exciting to see more builders coming to FX (for community members’ information, @Keith is one of the OG builders in the blockchain space and he is the Director of Operations for the Litecoin Foundation).

Give me some time to learn about this proposal, and I will send some questions here to ask for more details. I believe our community members also need some time to digest this information and will come back with questions for you and Baklava.


Hi Keith !

Usually, I’d say I’m strongly opposed to complexe financial derivatives IRL because of the risks they import in the ecosystem.
However, in this case, since there are no “intermediates” in the loop, I’d be mostly favorable, even though I’ll follow team’s position on this proposal.
Also, the amount of FX requested seems very fair considering developments required.

Question 1: could you provide 2-3 detailed examples of how it would work, for people not at ease with this kind of product ?

Question 2: could you consider a security audit of all smart contracts ?

Question 3: could you provide more details on real-time charts provided to users i.o.t. evaluate TVL and other KPI ?

Question 4: could you confirm transactions would happen on the FunctionX core network (fxevm) and/or imply FX fees ?

Question 5 (for the team): i think this proposal should be considered as an EGF-funded proposal (and not a CSP-funded one). What do you think ?



Thanks for your feedback @FrenchXCore

Question 1: could you provide 2-3 detailed examples of how it would work, for people not at ease with this kind of product ?

Scenario 1: You own some crypto asset (e.g. stablecoin LP) and you want some exposure to BTC without selling your stablecoin LP. With Baklava Space, you can pledge your LP asset as collateral in to mint stablecoin, and use these stablecoin to buy synthetic BTC - all within the platform.

Scenario 2: You want to exchange stablecoin to ETH at lower gas fees and lower slippage. By exchanging synthetic stablecoin and synthetic ETH within Baklava Space, users will 1) pay the FX fees instead of the ETH gas fees; and 2) use the oracle price for exchanging the asset, thus minimizing slippage fee.

Question 2: could you consider a security audit of all smart contracts ?

Yes. We will have the smart contracts fully audited when/after it is launched on Avalanche.

Question 3: could you provide more details on real-time charts provided to users i.o.t. evaluate TVL and other KPI ?

Total amount of TVL (Collateral pledged), total amount of minted synthetics will be provided on the protocol website real-time. Amount of minting fees generated per week is one of the KPI that will be provided.

Question 4: could you confirm transactions would happen on the FunctionX core network (fxevm) and/or imply FX fees ?

The transactions that would happen on the Function X network will incur FX fees, and they include all the transactions for the protocol to work. Namely, 1) depositing of any collateral, 2) minting of synthetic assets, 3) exchange one synthetic for another, 4) burning of synthetic asset, 5) liquidation and 6) staking of Bava on FX chain.


Wow, that was fast ! Thx !!!

1 Like

Hi all,

We have put up the funding proposal for the Baklava Space synthetic asset - protocol 28 on Function X StarScan.

Please vote before 21 November 2022. Thank you!


WILDO with a definitive YES.


Validator superbit has voted YES.


FxWorld validator has voted YES.



FrenchXCore voted YES :slight_smile:
Txhash: 0x46B54FB554DC457EEEDDA2A469554492A3B9396B474420E1ECD6C87ECC878E8


Thanks to those that have voted - we need more votes to cross the 40% participation mark.

Other than synthetic btc and eth, what other synthetics assets should we offer on FX?

1 Like

I’m hoping to see some stock-based synthetic assets, maybe. So we can attract and accommodate users who love high and/or low volatility assets and want more options in different market conditions.

Some love to swing high-volatility assets, while others prefer to scalp low-volatility assets like stocks and ETFs etc.

Best of both worlds, I guess.


we are working on the crypto-based assets first. stocks-based will be more tricky due to regulations.

things like carbon credit may be an option though


Hi @Keith and team, thanks for coming onto Function X ecosystem. I hope the governance proposal passes and we can have Baklava Space!


looking good so far… 10 days and only 6,3% missing to quorum


Yes, me too.

But it looks like there are some issues on stock-based synthetics. See from, they have removed it.

Let’s keep checking on it.


Thank you all for your voting! 2.3% more needed to meet the 40% quorum - 9 more days to go


A lot of events happened over the last few days, but do remember to vote Function X StarScan as the proposal is 2.3% short of the quorum with 7 days to go.


Thank you to all voters, proposal 28 has reached 40% quorum with 98.8% yes votes! Baklava Space looks forward to join the FX ecosystem.


very nice :slight_smile: congratulations… i am looking forward to the collaboration results :slight_smile: