⚙️Key Functions of f(x) 2.0
Last updated
Last updated
Opening and Closing xPOSITION - Minting fxUSD
Users can open xPOSITION by providing stETH 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.
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.
