This vault provides boosted yields for the Curve stETH/frxETH liquidity pool through Convex Finance. The pool pairs two liquid staking derivatives: Lido's stETH and Frax's frxETH, both representing staked Ethereum.
How This Vault Works
Provide stETH and/or frxETH to the Curve pool
Stake LP tokens in Convex
Convex applies veCRV boost for enhanced CRV rewards
Earn staking yield plus CRV and CVX
Yield Sources: ETH staking rewards (from both LSDs), Curve swap fees, boosted CRV emissions, CVX rewards.
Understanding the Pool Assets
stETH (Lido): Liquid staking token representing ETH staked through Lido. Rebases daily to reflect staking rewards (~3-4% APY). Most widely used ETH LSD.
frxETH (Frax Ether): Frax's liquid staking token pegged to ETH. Unlike stETH, frxETH does not rebase. To earn staking yield, users must stake frxETH as sfrxETH.
Staking Yield Dynamics
stETH in Pool: Continues earning staking rewards through rebasing, benefiting all LPs.
frxETH in Pool: Does not earn staking yield directly (yield accrues to sfrxETH holders). However, frxETH maintains its ETH peg.
This creates an interesting dynamic where the pool composition may shift based on relative yields.
Fee Structure
Standard Convex fees:
16% of CRV rewards
No deposit/withdrawal fees
Risk Disclosures
Smart Contract Risk: Exposure to Curve, Convex, Lido, and Frax contracts. Multiple protocol dependencies.
Validator Risk: Both LSDs depend on their respective validator operations. Slashing events could affect token values.
Depeg Risk: Either LSD could trade at discount to ETH during market stress. LPs face impermanent loss.
Rebasing Complexity: stETH rebasing within an LP position creates accounting complexity.
Ethereum Risk: Both assets are ETH-denominated. ETH price declines affect USD value.
Yield Asymmetry: frxETH holders in this pool forgo direct staking yield compared to holding sfrxETH.
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.