> For the complete documentation index, see [llms.txt](https://fxprotocol.gitbook.io/fx-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fxprotocol.gitbook.io/fx-docs/faq/where-does-the-yield-come-from.md). # 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](/fx-docs/f-x-protocol-mechanisms/stability-pool.md).\ \ 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 LONG Position (xPOSITION)](/fx-docs/f-x-protocol-mechanisms/creating-a-leveraged-long-position-xposition.md)\ \ 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](/fx-docs/earn-with-f-x/protocol-revenue-and-distribution.md) 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](https://forum.aladdin.club/t/fip-12-deploy-wsteth-to-aave-protocol/575), 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](/fx-docs/risk-management/risk-parameters.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://fxprotocol.gitbook.io/fx-docs/faq/where-does-the-yield-come-from.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.