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).