# General FAQs

### How does Xave's FX AMM work? <a href="#what-can-users-do-on-halodao" id="what-can-users-do-on-halodao"></a>

Xave’s AMM infrastructure is purpose-built to support FX swaps, and uses a proprietary bonding curve we call the [FXInvariant](https://docs.xave.co/product-overview-1/fxpools/amm-faqs#question-1-what-is-the-difference-between-this-fx-invariant-and-more-popular-invariants-such-as-cons).  This curve is optimized to mimic real-world FX markets, while setting programmatic thresholds that allow stablecoin pool ratios to snap back to ideal FX ranges to maintain pool health.  You can read more about this [here](https://docs.xave.co/product-overview-1/fxpools).<br>

### **Where are the FX prices quoted from?**

Xave’s FXPools uses Chainlink price feeds for each of the supported currencies.<br>

### **What stablecoins does Xave support?**

Xave works with issuers that offer fiat-backed stablecoins denominated in a variety of the world’s currencies.  Our focus is on supporting the growth of non-USD stablecoins, and we add new currencies on a regular basis. <br>

### **What does Xave’s governance token do?**

The XAV token is built to a similar standard as Balancer’s BAL token, and is a key part of governance for setting FXPool parameters.  Please review [this page](https://docs.balancer.fi/concepts/governance/veBAL/) for a better understanding of how the process of locking XAV to mint veXAV works.  &#x20;