> 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).


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