f(x) USD Saving

f(x) USD Saving is a vault token issued within f(x) Protocol, developed by the AladdinDAO team, and runs on Ethereum. When users deposit fxUSD, the protocol's dollar stablecoin, into this vault, they receive fxSAVE in return. fxSAVE is therefore not a stablecoin pegged directly to the dollar but a share token that accrues yield on fxUSD.

The fxUSD entering the vault is deposited into the protocol's stability pool. This pool acts as a buffer that steps in when liquidations are needed in leveraged positions on f(x) Protocol, and earns income in return. Sources of yield include staking rewards on the stETH used as collateral, transaction fees in the protocol and protocol incentives. The vault regularly collects these rewards and converts them back into fxUSD, so the amount of fxUSD each fxSAVE corresponds to grows over time. This accumulation is why the dollar value of fxSAVE differs from that of fxUSD.

The value of fxSAVE may be affected by fxUSD's ability to hold its peg, the risk the stability pool takes on during periods of heavy liquidations, stETH yields and the protocol's smart contract security. The price shown for f(x) USD Saving on Lzzo.com comes from DefiLlama's dollar-based reference; the chart also uses the same data provider's historical series.