fx Docs
  • f(x) Protocol Documentation
  • OVERVIEW
    • 📖Abstract
    • ⭐Core Products of f(x) Protocol 2.0
  • f(x) Protocol Mechanisms
    • ⚖️The f(x) Invariant
    • ⚙️Key Functions of f(x) 2.0
    • 🚀Creating a Leveraged Position (xPOSITION)
    • 🪂Rebalancing the Position (Liquidation Brake)
      • Understanding the band system
      • Liquidation process
      • Developers
    • 💰Stability Pool
    • 💵Fees
  • RISK MANAGEMENT
    • 🧘‍♂️Risk framework
    • ✅Advanced Peg Protection Mechanisms
      • Understanding the redemption mechanism
    • 🚨Risk parameters
    • 🧭Oracle
      • stETH
      • WBTC
    • 🛡️Audit Reports
  • Earn with f(x)
    • 💲USD high & sustainable yield
    • 🪙$FXN Tokenomics
      • veFXN
      • FXN Farming and veFXN Boost
    • 🔥Protocol Revenue & Distribution
  • POWER TO THE PEOPLE
    • 🤝Get involved - Community Booster Program
    • 🫂Referral Program
  • FAQ
    • 🟦Is fxUSD an algorithmic stablecoin?
    • 🟦Where does the yield come from?
    • 🟦How do f(x) Protocol stablecoins maintain stability?
    • 🟦Is there any LUNA-like risk?
    • 🟦How does f(x) Protocol minimize liquidations?
    • 🟦How does f(x) Protocol minimize funding costs?
    • 🟦What could go wrong?
    • 🟦Why are there different stablecoins?
    • 🟦What is the difference between f(x) Protocol V1 and V2?
    • 🟦What price drop would it require for my xPOSITION to be rebalanced/liquidated?
  • GUIDES
    • 📈How to open a leverage position (xPOSITION)
    • 📉How to close a leverage position (xPOSITION)
    • 📐How to adjust your leverage / how to reduce your Liquidation Brake
    • ➕How to add/reduce a leverage position?
    • 💰How to stake into the stability pool?
    • 🚶‍♂️How to unstake from the stability pool?
  • MORE
    • 🔡Token Breakdown
    • 1️⃣f(x) Protocol 1.0
      • Leverage
      • Earn
      • Stability Mechanism
      • FX Auto-Compound
      • Oracle
    • 🖥️Resources
      • Contracts
      • Useful links
    • 🪔Aladdin DAO
    • 😎 Brand Assets
Powered by GitBook
On this page
  • Where Does the Yield Come From?
  • Earn Pools
Export as PDF
  1. MORE
  2. f(x) Protocol 1.0

Earn

Where Does the Yield Come From?

The f(x) Protocol provides multiple opportunities to earn yields through Earn Pools and FX Auto-Compound mechanisms. These tools leverage BaseTokens, Liquid Staking Derivatives (LSDs), and FXN emissions to generate returns.

Earn Pools

Stable holders can stake their fTokens into Earn Pools (also known as Stability Pools) to earn yields generated by BaseTokens, plus FXN emissions. Each Earn Pool is tailored to the specific characteristics of its collateral.

fxUSD Earn Pools

  • Collateral: wstETH and frxETH.

  • Yield: Earn wstETH and frxETH rewards.

  • Details:

    • fxUSD Earn Pools are segregated by reserve LSD, allowing for variations in yield and leverage across stability pools.

    • Pools reflect the different risks, base yields, and reserve backing of their respective LSDs.

btcUSD Earn Pools

  • Collateral: WBTC.

  • Yield: Earn WBTC rewards.

  • Details:

    • Unlike other BaseTokens, WBTC has no built-in yield.

    • xWBTC holders pay competitive funding rates for leveraged price exposure.

    • btcUSD holders share these funding rates without additional costs, with xWBTC’s funding rate tracking the crvUSD borrowing rate against WBTC.

rUSD Earn Pools

  • Collateral: eETH and ezETH (ETH Liquid Restaking Tokens).

  • Yield: Earn restaking rewards, including points, without ETH price exposure.

  • Details:

    • 100% of reserve points flow to the rUSD Stability Pool, along with 50% of LST yields.

    • This makes the rUSD Stability Pool’s point accrual rate significantly higher than directly holding the LST.

cvxUSD Earn Pools

  • Collateral: CVX.

  • Yield: Earn staking rewards from Convex Finance.

  • Details:

    • Users can stake cvxUSD in Earn Pools to earn CVX staking yields while maintaining the stablecoin’s dollar peg.

fETH Earn Pools

  • Collateral: stETH.

  • Yield: Earn native LSD rewards from stETH, plus FXN emissions.

PreviousLeverageNextStability Mechanism

Last updated 5 months ago

1️⃣