# Why Use an FXPool?

{% hint style="info" %}
Xave is essentially a Uniswap or Curve equivalent, but purpose built for 20x more capital efficient stablecoin FX. [Click here for a live example](https://twitter.com/XaveFinance/status/1706138149825683939)
{% endhint %}

Xave has brought liquid FX markets to DeFi, via its’ novel FXPools built on the Balancer v2 Vault. Stablecoin issuers (Circle, Stasis, VNX, StraitsX, etc) have created FXPools for their stablecoins on Xave and, during 2023, saw \~$53M worth of forex trades settled on the platform across multiple Euro, Swiss Franc, Singapore Dollar, Pound Sterling and even gold. 

### The “FX Invariant” vs StableSwap (Curve) vs Constant Product (Uniswap)

Read detailed invariant behavior here <https://docs.xave.co/product/amm>.

The novel “FX Invariant” is built and optimised for;

1. 24/7 FX trades (even on weekends!)
2. Auto rebalancing FX LP ranges (unlike Uni v3 that needs manual range management)
3. Bringing live off chain price on chain (because FX markets trade off chain, not on chain)

<table><thead><tr><th width="119">Property</th><th>RWA Pool</th><th>StableSwap</th><th width="148">Constant Product</th><th>Concentrated Liquidity</th></tr></thead><tbody><tr><td>Built for RWA and StableSwap?</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> RWA<br><br><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> StableSwap</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span> Only for like-priced stablecoin trades</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span> Only for general cryptocurrency trading</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span> Only for general cryptocurrency trading</td></tr><tr><td>Capital Efficient for RWA?</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> Yes<br><br>“$1M TVL enables ~$500k market accurate trading”</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span>No<br><br>Needs ~$20M  in liquidity to enable ~$500k market accurate trading</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span> No<br><br>Needs >$20M in liquidity to enable ~$500k market accurate trading</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> Yes</td></tr><tr><td>LP Management</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> Passive<br><br>Real time market pricing via oracle feed integration <br><br>Auto LP range adjustment via oracle feed</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> Passive</td><td><span data-gb-custom-inline data-tag="emoji" data-code="2705">✅</span> Passive</td><td><span data-gb-custom-inline data-tag="emoji" data-code="274c">❌</span> Active<br><br>FX LPs have to manually adjust LP range based on off chain market pricing</td></tr></tbody></table>


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