This vault optimizes yields for the Curve frxETH/WETH-ng (next generation) pool through Convex Finance. The pool enables efficient swaps between Frax's liquid staking ETH (frxETH) and native WETH.
Note: Holding frxETH in this LP does not earn staking yield. To earn Frax staking yield, hold sfrxETH.
Pool Characteristics
The "ng" (next generation) pool features:
Improved oracle handling
Enhanced capital efficiency
Better security mechanisms
Optimized for liquid staking tokens
Fee Structure
Standard Convex fees:
16% of CRV rewards
No deposit/withdrawal fees
Yield Consideration
This vault's yield comes only from:
Curve trading fees
CRV gauge emissions (boosted)
CVX token rewards
No staking yield: frxETH in this pool does not earn ETH staking rewards. Compare to sfrxETH pools for staking yield inclusion.
Risk Disclosures
Smart Contract Risk: Exposure to Curve, Convex, and Frax contracts.
frxETH Risk: Frax validator operations affect frxETH. Slashing could impact the peg.
Opportunity Cost: Holding frxETH instead of sfrxETH means forgoing staking yield.
Depeg Risk: frxETH may trade at discount during market stress.
Ethereum Correlation: ETH-denominated assets lose USD value when ETH drops.
Lower APY: Without underlying staking yield, returns depend heavily on CRV/CVX rewards.
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.
Monitor this position alongside your portfolio.
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