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TVL $12MAPY 4.60%medium riskUpdated Feb 1, 2025

sfrxUSD/frxUSD Convex Deposit

Deposit Curve sfrxUSD/frxUSD LP tokens into Convex for boosted yields on this Frax staked stablecoin pair.

ProtocolConvex
Networkethereum
SymbolCVXSFRXUSD2
CategoryYield Vaults
Underlying Assets
sfrxUSDfrxUSDCRVCVX
Contract Address0x8f38eae1e57f6d86353c15be21b7491da6840ece

What is sfrxUSD/frxUSD Convex Deposit?

This vault optimizes yields for the Curve sfrxUSD/frxUSD pool through Convex Finance. The pool pairs Frax's base stablecoin (frxUSD) with its staked, yield-bearing version (sfrxUSD).

How This Vault Works

  1. Provide sfrxUSD and/or frxUSD to the Curve pool
  2. Stake LP tokens in this Convex vault
  3. Convex applies boosted CRV rewards
  4. Earn from sfrxUSD yield plus CRV and CVX
Yield Sources: sfrxUSD staking yield, Curve swap fees, boosted CRV emissions, CVX rewards.

Understanding sfrxUSD

frxUSD: Frax's base USD stablecoin, fully collateralized sfrxUSD: Staked frxUSD earning yield via ERC-4626 vault

sfrxUSD yield comes from:

  • Carry-trade strategies
  • Algorithmic market operations (AMOs)
  • IORB/T-Bill rate arbitrage

The vault continuously accrues value relative to frxUSD.

Pool Dynamics

This pool facilitates:

  • Swaps between staked and unstaked frxUSD
  • Yield arbitrage opportunities
  • Liquidity for sfrxUSD unstaking
  • Efficient entry/exit for sfrxUSD holders

Fee Structure

Standard Convex fees:

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

sfrxUSD in LP Context

When sfrxUSD is in an LP position:

  • Continues earning Frax staking yield
  • LPs benefit from underlying yield appreciation
  • Creates interesting arbitrage dynamics
  • Pool ratio shifts as sfrxUSD appreciates

Risk Disclosures

Smart Contract Risk: Exposure to Curve, Convex, and Frax staking contracts. Frax Protocol Risk: sfrxUSD yield depends on Frax's strategy execution. Poor strategy performance affects yield. frxUSD Risk: While collateralized, frxUSD has Frax-specific mechanisms and governance. Impermanent Loss: The sfrxUSD/frxUSD ratio changes as sfrxUSD accrues yield. This creates a form of IL, though predictable. Yield Variability: sfrxUSD yield depends on which benchmark strategy Frax governance selects. Governance Risk: Frax governance controls yield strategies and stablecoin parameters.

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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