Lido Staked ETH pricestETH

So, how does this actually work? xPOSITION represents a leveraged long position on a collateral asset such as stETH or wBTC. When you open one, you’re aiming for amplified exposure to the price movement of that asset.

> Collateral Submission The user deposits collateral (stETH or WBTC) to mint fxUSD, the protocol’s stablecoin, which funds the leverage mechanism. > Flash Loan for Collateral The protocol uses flash loans to obtain collateral and create leveraged positions atomically, ensuring full execution without risk of partial failure. > Minting fxUSD For each xPOSITION, the protocol mints fxUSD to maintain collateralization. A 7x position equals 1 unit of xPOSITION backed by 6 units of fxUSD, while the underlying collateral (stETH or WBTC) continues to earn yield. > xPOSITION Creation After securing collateral and minting fxUSD, the leveraged xPOSITION is activated, giving users exposure to the underlying assets.

You start by depositing fxUSD into the protocol which acts as your margin for the short. When you open an sPOSITION, the protocol: - Borrows stETH or wBTC from the long reserve (the same pool that holds collateral for xPOSITIONs). - Sells the borrowed asset on the market (via an

If the price of the borrowed asset (stETH or wBTC) rises and your leverage becomes excessive, the protocol automatically rebalances your position. It repays the borrowed asset using your fxUSD collateral, and any remaining fxUSD (if any) is returned to you. Rather than