Let’s Get to Work
When your lifeline turns into a turbocharger for your portfolio
Back from the honeymoon with your favorite stablecoin?
Good. Now it’s time to put it to work.
Yup, you heard me. Your stablecoins aren’t just the “safe” part of your portfolio—they can also become a powerful catalyst for almost effortless gains. Don’t believe me? Stick with me.
Let’s say you’ve set aside $10,000. You don’t plan on touching it anytime soon—unless life throws you a curveball.
In traditional finance, if you’re not big on risk, your options are… uninspiring. You can park the cash in a standard savings account, a high-yield savings account, or maybe short-term T-Bills so you’re not locking it up for too long.
In exchange for a near-zero risk of losing your principal, you’ll get back… peanuts. And a polite smile from your banker.
Here’s the math:
Average savings account in the U.S.: 0.57% APY
High-Yield Savings Account: 4%–4.4% APY
3-month T-Bills: around 4.3%–4.4%
So your $10,000 earns:
$57 in a standard savings account
Up to $440 in the best-case scenario for the other two
Now let’s talk stablecoins. Things start to look… a lot more interesting.
Take $fxUSD, the stablecoin from f(x) protocol. We’ve already checked out its peg stability and the mechanisms keeping it solid. Now let’s explore what you can actually do with it.
Time to Deploy 🚀
Picking up from our $10k example, where can we park those stablecoins fresh from their honeymoon?
The natural habitat for $fxUSD is the Stability Pool. This pool underpins protocol f(x)’s liquidity and serves as the first line of defense for peg stability. (Missed this part? Catch up here: It’s Easy to Say “Stablecoin”).
Right now, the pool offers multiple yield opportunities depending on which reward token you choose. But before diving into the numbers, let’s ask the key question:
How sustainable are these yields?
The Stability Pool’s revenues come from two sources:
Revenue from collateral: e.g., $stETH yields reinvested by the protocol
Protocol fees: paid by users interacting with f(x)
This dual structure aligns perfectly with the protocol’s goal stated in the whitepaper: benefit both traders and long-term investors. It’s a win-win.
Why? Because even if you’re like me—holding positions for days or months without generating frequent protocol fees—your liquidity is still earning for the protocol. It gets reinvested, mainly into DeFi giants like Aave.
This means stable, recurring revenue for f(x), most of which flows back into the Stability Pool.
We’re used to thinking of providing liquidity to perpetual DEXs as a smart move: traders lose 70% of the time, and as “the house” you win 70% of the time. But you need to stay invested long enough for the math to play out. Plus, in a bull run, this often flips…
Here, it’s different. You’re not betting against traders. You’re supporting them—and earning consistent yields along the way.
Here are two snapshots of Stability Pool yields from Pendle and DefiLlama. (I’ve skipped the early months when APY ranged 30–45% due to lower liquidity.)
Pendle
Defillama
The average APY in recent months? About 9%.
Not bad. In fact, compared to TradFi:
~18x your average savings account
~2x high-yield savings accounts or 3-month T-Bills
But remember when I said stablecoins—especially $fxUSD—could give your portfolio a real boost? Here’s how.
Pick Your Flavor: 3 Reward Options 🍨
When adding liquidity to the Stability Pool, you can choose how you’re paid:
$fxUSD
$ETH
$FXN
This choice shouldn’t be random—or based solely on the highest APY. It should fit your portfolio strategy and long-term vision. (Sorry, no quick flips here.)
At the time of writing, here are the APYs:
💡 P.S. Want to squeeze out an extra 0.5% APR? Use my referral link: https://fx.aladdin.club/v2/earn/?code=0xDrVV
🛡️ Conservative Play: $fxUSD (10.43%)
Perfect for any market—bull, bear, or crabby sideways action. Combine this with compounding, and your stablecoin stack grows steadily over time.
🟣 Blue-Chip Play: $ETH (9.93%)
If you believe Vitalik’s creation is the future of DeFi, this is for you. Get paid in ETH while avoiding portfolio volatility. Counterintuitively, this shines in a bear market: you’re stacking ETH at a discount, ready for the next bull run.
🔥 Visionary Play: $FXN (13.39%–33.47%)
Confident protocol f(x) will thrive? Or see $FXN as an $ETH beta? This lets you farm their governance token. With lower market cap comes higher volatility, but here you’re shielded from price swings while farming at solid rates—especially attractive in a bear.
Beyond the Stability Pool: Other Yield Options
Your $fxUSD can also work in Curve pools listed on f(x)’s “Earn” page:
And remember the compounding effect? f(x) protocol, via 0xConcentrator (another Aladdin DAO creation), offers auto-compounding built right in. For the lazy among us, this is a godsend.
Is That All?
Not even close.
f(x) is partnering across DeFi to open even more earning avenues for $fxUSD. Some involve protocols like Aave (fun fact: while I was writing this, $fxUSD was approved as collateral on Aave—new strategies incoming).
But let’s save that for the next article. Trust me, it’s worth staying tuned.
Please remember that this content is purely educational and informational in nature, and should not be considered financial advice.
I am NOT a financial advisor.
Before investing even a single dollar, make sure you fully understand what you’re doing and consider seeking guidance from qualified financial professionals.
Stay safe, stay liquid,
✌️