# f(x) Protocol Documentation

## What is f(x) Protocol?

f(x) Protocol empowers DeFi to bring an innovative approach to stablecoins and leverage trading.

The f(x) invariant can split any yield-bearing asset into two components:

\- A scalable decentralized stablecoin that captures sustainable on-chain real yield - fxUSD

\- A leveraged position that delivers up to 10x leverage on ETH with minimal liquidation risk and funding cost - the xPOSITION.

On one hand, you can get the first **USD delta neutral strategy that captures leveraged real yield** (perps trading fees - ETH staking yield - FXN emissions) and; on the other hand, you can opt for a high-volatility position with minimized liquidation risk but without inherent yield.

100% on-chain & scalable. Let's get started :point\_down: