fxUSD is f(x) Protocol's CDP-minted dollar overcollateralized by WBTC and wstETH, with a Stability Pool arbitraging Curve to defend the peg. The static profile records its US Dollar peg mechanism as: CDP-style with overcollateralization and liquidations; f(x) Protocol Stability Pool arbitrages the USDC/fxUSD Curve pool to defend the peg; two yield strategies: (1) Curve LP with FXN gauge, (2) Stability Pool with wstETH real yield, fxSAVE autocompound, or FXN gauge; fxUSD redeemable at oracle price for underlying collateral when below peg; automatic rebalancing and liquidation of under-collateralized positions.

As of Oct 25, 2026, Pharos grades fxUSD B- (68/100) on its Safety Score. Pharos's reviews record that admin controls such as a pause or an upgradeable contract exist, though no power to freeze a specific holder was found, and any holder can use its reviewed redemption route. That grade is in the Score's upper band, which does not rule out losses. The grade moves as reserve, redemption, peg and control evidence changes; the live Safety Score on this page shows the current reading.

Pharos records fxUSD's reserves as of Jul 14, 2026 as 85.8% WBTC and 14.2% wstETH (Lido). Reserve evidence: live reserve feed configured. Pharos classifies the backing as Crypto-Collateralized.

Based on tracked contract metadata and blacklist coverage, admin controls such as a global pause or an upgradeable contract are recorded, but the review found no active power to freeze or seize a specific holder's balance on material deployments.

Under the route Pharos reviewed on Mar 23, 2026, any holder can redeem fxUSD for WSTETH and WBTC. Redemption settles atomically on-chain. The reviewed redemption fee is 0.5%. Whether a given holder qualifies is set by the route's own terms, not by this summary.