This opportunity acts as a savings account denominated in USD.
When you deposit into this pool, your fxUSD is used to reduce debt from high-leverage positions. In return, fx sells wstETH collateral and converts it back to fxUSD or USDC to replenish the pool, but if ETH’s price drops or there’s high slippage, the amount returned could be less than what was originally burned.
Your yield comes from multiple sources: when the protocol stabilizes risky leveraged positions, it sells wstETH collateral and any price gains can generate a profit. It also receives a share of protocol fees, including transaction fees, liquidation rewards, unused slippage, and all collateral yield.