🟦Where does the yield come from?

This is the question everyone should ask themselves when assessing any yield opportunity. The main f(x) strategy is the Stability Pool. Many wonder how f(x) can deliver yields while offering no funding / no borrowing cost leverage. You'll find a detailed answer below, but first, note that while the xPOSITIONs incur no recurring borrowing costs (in most conditions), there is a one-time opening and closing fee. Learn more here: Creating a Leveraged Position (xPOSITION) The stability pool accepts both fxUSD and USDC and gives exposure to both assets. It harnesses different sources of real, organic, and sustainable yields.

• xPOSITION opening and closing fees

• The reserve's yields. Remember, ETH xPOSITIONS are backed by wstETH which generates staking yields. Plus, a portion of it is deposited on Aave* to capture even better rewards.

• USDC's lending yield on Aave*

• Other occasionnal revenue. You can find all the details on that page: Protocol Revenue & Distribution

OR

$FXN. Indeed, depending on what you'd rather accumulate with your stablecoins: wstETH, stables (fxSAVE), or FXN you can opt for FXN emissions instead of real yield.

*Following the FIP-12, some of the wstETH of the reserve and USDC of the Stability Pool are deposited into Aave. The maximum dsitribution deposited can be found on Risk parameters.