The f(x) Invariant
f(x) Protocol ensures that the total value of all fxUSD combined with the total value of all xPOSITIONs always equals the total value of the collateral reserves. Dynamic adjustments to the leverage ratio of xPOSITION and the pegging ratio of fxUSD ensure collaboration between zero-volatility stablecoins and high-leverage tools.
Where 𝑛 n is the number of TOKEN collateral, 𝑠 is the TOKEN price in USD, nf is the number of fxUSD, 𝑓 is the fxUSD NAV in USD, nx is the number of xPOSITION units, and 𝑥 represents the NAV of xPOSITION in USD.
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