# How do f(x) Protocol stablecoins maintain stability?

Stablecoins can be minted and redeemed at the oracle price, ensuring seamless functionality. For fxUSD, several mechanisms guarantee a perfect peg:

* f(x) Protocol establishes and maintains a deep fxUSD/USDC liquidity pool.
* The fxUSD stability pool offers high and sustainable yields derived from stETH staking, xPOSITION opening fees, and FXN emissions. This stability pool, which accepts both USDC and fxUSD, also acts as a peg keeper by purchasing fxUSD when it trades below peg and selling it back to USDC when it trades above.
* xPOSITION cannot be opened if fxUSD is trading below peg.
* fxUSD can always be redeemed at the oracle price for stETH or WBTC, safeguarding it against any significant de-peg events.\
  \
  Learn more here.

{% content-ref url="../risk-management/advanced-peg-protection-mechanisms" %}
[advanced-peg-protection-mechanisms](../risk-management/advanced-peg-protection-mechanisms)
{% endcontent-ref %}

