Advanced Peg Protection Mechanisms
Stability Pool as Peg Keeper:
Maintains fxUSD stability through arbitrage operations within the fxUSD/USDC AMM pool.
Operational Restrictions During Depegging:
New xPOSITION openings are prohibited to prevent excess fxUSD minting.
Stability pool yield incentives attract additional liquidity to restore the peg.
xPOSITION Funding Fees:
During a depeg, funding fees are charged to xPOSITION holders, enhancing stability pool yields.
Redemption of fxUSD:
Users can purchase fxUSD on the secondary market and redeem it for $1.00 worth of collateral (subject to fees).
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