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TVL $45MAPY 3.15%medium riskUpdated Feb 1, 2025

FRAX/3CRV Convex Deposit

Deposit Curve FRAX/3CRV LP tokens into Convex for boosted yields on this Frax Finance stablecoin metapool.

ProtocolConvex
Networkethereum
SymbolCVXFRAX3CRV
CategoryYield Vaults
Underlying Assets
FRAXDAIUSDCUSDTCRVCVX
Contract Address0xf5a6b7c8d9e0f1a2b3c4d5e6f7a8b9c0d1e2f3a4

What is FRAX/3CRV Convex Deposit?

This vault optimizes yields for the Curve FRAX/3CRV metapool through Convex Finance. FRAX is Frax Finance's flagship stablecoin, and this metapool pairs it with Curve's 3pool for deep stablecoin liquidity.

Understanding FRAX and Frax Finance

FRAX has evolved through multiple iterations:

  1. Original Design: Fractional-algorithmic stablecoin
  2. Current Design: Fully collateralized with diversified backing
  3. AMO System: Algorithmic Market Operations for peg management
  4. Ecosystem Integration: Part of broader Frax ecosystem (frxETH, sFRAX, etc.)

FRAX pioneered innovative stablecoin mechanisms while adapting to market demands.

FRAX's Collateral and AMOs

Frax's current backing includes:

  • USDC reserves
  • Curve LP positions (via AMOs)
  • Real-world assets
  • Protocol-owned liquidity

AMOs automatically manage liquidity across DeFi to maintain the peg.

How This Vault Works

  1. Provide FRAX and/or 3CRV to the metapool
  2. Stake LP tokens in Convex vault
  3. Convex applies veCRV boost
  4. Earn fees + CRV + CVX
Yield Sources: Curve swap fees, boosted CRV emissions, CVX incentives, potential Frax incentives.

Fee Structure

Convex standard fees:

  • 16% of CRV rewards
  • No deposit/withdrawal fees

Frax's Role in Curve Wars

Frax is a major participant in Curve governance:

  • Large veCRV holder through AMOs
  • Controls significant gauge votes
  • Strategic relationship with Convex
  • Incentivizes FRAX pools

This involvement often means additional incentives for FRAX pools.

cvxCRV and Boosted Yields

The Convex boost system:

  • Aggregated veCRV from all depositors
  • cvxCRV stakers fund the infrastructure
  • Small users get max boost automatically
  • Sustainable yield model

Risk Disclosures

Smart Contract Risk: Exposure to Curve, Convex, Frax Finance contracts. AMOs add complexity. FRAX Mechanism Risk: FRAX has undergone significant design changes. Current collateralization is strong but mechanisms are complex. AMO Risk: Algorithmic Market Operations involve automated DeFi positions. Poor execution could affect backing. 3pool Risk: Underlying DAI/USDC/USDT exposure through the metapool. Governance Risk: Frax governance actively modifies protocol parameters and collateral composition. Impermanent Loss: FRAX deviating from $1 causes LP losses. Concentration Risk: Frax's heavy Curve involvement creates interdependencies.

Related Yield Vaults

USPD/USDC Convex Deposit1.34% APYDOLA/sUSDe Convex Deposit4.65% APYFRAXUSDe Convex Deposit2.50% APYYearn WETH yVault1.82% APYCurve.fi Factory Pool: stETH-ng Convex Deposit1.27% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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