We need to look at the sources of income and anchor guarding mechanism of fxSAVE together Yield is the first number to be seen. But before putting the funds in, there are still a few questions worth clarifying! How does the system respond when the fxUSD deviates from 1 USD? Who provides buying offers? What other means of adjustment are there if the pressure continues to increase? As a participant in FX, I want to clarify this mechanism. According to the official documentation of f (x) Protocol, fxUSD has designed a five layer progressive anchor guarding mechanism: 1、 Opening and closing positions create a demand for buying and selling Users opening long and short positions will generate demand for buying and selling fxUSD, and participate in the supply and demand adjustment within the agreement. This links anchor guarding with protocol business, rather than relying solely on external buying. 2、 Stable pool participation in arbitrage When the value of fxUSD drops to the set threshold, buy into the stable pool; When the price exceeds $1, sell back to USDC to support anchoring through arbitrage. The stable pool serves as an anchor, while the agreement income provides incentives for deposits. Understanding where the returns come from also requires understanding what these funds are doing in the system. 3、 Introduce temporary financing costs when USDC is insufficient When the proportion of USDC in the stable pool is less than 5%, the system triggers the first layer of temporary financing costs. According to the documentation, based on the Aave USDC borrowing rate, the collateral value of the relevant leveraged positions will be charged, and the additional income will be used to incentivize stable pool deposits and short positions. The system attracts USDC supplements by adjusting costs and benefits, and encourages relevant participants to adjust their positions. 4、 Pressure further increases, strengthen protection If the stable pool USDC is depleted and the 42 minute exponential moving average (EMA) of fxUSD on Curve is below $0.998, fxUSD minting will be suspended and the related temporary borrowing costs will be increased to 10 times the Aave USDC borrowing rate. The function of this layer is to limit the increase in selling pressure while enhancing the motivation to buy FX USD and repay debts. 5. Redemption of collateral provides arbitrage support According to the document design, the last layer allows the redemption of $1 worth of wstETH or WBTC using fxUSD, with a deduction of 0.5% redemption fee. After deducting the fee, approximately 0.995 US dollars constitutes a theoretical arbitrage reference. It does not mean that market prices will never fall below, and the actual effect still depends on conditions such as collateral, oracle, and redemption execution. Understand these five layers and then come back to look at fxSAVE. FxSAVE is built on a stable pool and reinvests its earnings. Therefore, its revenue is closely linked to the underlying assets, agreement income, and the role assumed by the stability pool. This is also something I think is worth making clear: benefits are not isolated percentages, but the result of the operation of the entire mechanism. When participating in FX, it is even more important to clarify both the sources of returns and the boundaries of risks. After understanding the design, continuous observation should also be conducted in conjunction with on chain operations, collateral conditions, and risk parameters. First, figure out where the money comes from, and then determine whether the profit value is worth taking. Yield determines attractiveness, while risk boundary determines position. The above is based on the official documentation of @ rotocol_fx, and the parameters may be adjusted through governance. Mechanism design does not equal a commitment to break even, and participation still involves risks such as anchor detachment, smart contracts, and collateral. It does not constitute investment advice. DeFi https://fxprotocol. (gitbook.io)/fx-docs/risk-management/advanced-peg-protection-mechanisms