⚙️Key Functions of f(x)

Opening and Closing xPOSITION - Minting fxUSD

• Users can open xPOSITION by providing stETH or WBTC as collateral. fxUSD is minted as a byproduct of the xPOSITION opening using the f(x) Invariant formula.

• The system dynamically adjusts leverage ratios and fxUSD minting to maintain overall stability.

Opening an Closing sPOSITION

• Users can open sPOSITION by providing fxUSD as collateral. The leverage is obtained using a flashloan which is repaid using the fxUSD's backing assets. Learn more.

• The system adjust leverage ratios to maintain overall stability.

Rebalancing Operations

• Automatically adjusts leveraged positions to safe levels (see Risk parameters), significantly reducing liquidation risk.

• This process is handled automatically by keepers.

Liquidation Mechanism

• If rebalancing fails, the protocol initiates liquidation by redeeming associated fxUSD to always protect fxUSD's integrity.

• This process is handled automatically by keepers.

Stability Pool

• Offers yield opportunities for users while serving as a peg-keeper for fxUSD.

• Maintains price stability through efficient arbitrage operations.