The large eyelet prevents the needle from catching in the presser foot during large jumps, as often happens when I use the presser foot that came with my Singer xl420. The larger the hoop, the greater the likelihood of long jumps and dropping the needle onto the metal. A darning foot with big eyes prevents this. It moves when the hoop is removed so it needs to be centered or the needle will hit it. After about 18 months of use, the buttonhole moves when sewing and is therefore unusable. But for the price, it's worth upgrading every year or so.
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