{"id":"staked-frax-usd","title":"Staked Frax USD","content":"**Staked** **Frax** **USD (sfrxUSD)** is an [ERC-4626](https://iq.wiki/wiki/erc-4626) yielding [stablecoin](https://iq.wiki/wiki/stablecoin) that allows holders to earn yield on their [frxUSD](https://iq.wiki/wiki/frxusd) deposits while maintaining full redeemability at an increasing rate proportional to the yield mechanism.\n\n## Overview\n\nStaked Frax USD (sfrxUSD) functions as the yield-bearing version of [frxUSD](https://iq.wiki/wiki/frxusd) within the [Frax](https://iq.wiki/wiki/frax) Finance ecosystem. Unlike traditional rebasing tokens, sfrxUSD maintains a constant token count while the redemption value against the underlying [frxUSD](https://iq.wiki/wiki/frxusd) increases over time as yield accrues. This design allows users to stake their [frxUSD](https://iq.wiki/wiki/frxusd) and earn competitive yields without having to manage multiple positions or constantly rebalance their portfolios. [\\[1\\]](#cite-id-RuxAX7IWn6)\n\nThe token operates as a fully ERC4626-compliant vault, making it compatible with various DeFi protocols and applications. Users can redeem their sfrxUSD for the underlying [frxUSD](https://iq.wiki/wiki/frxusd) at any time without unstaking fees or price impact, providing both yield generation and liquidity. [\\[2\\]](#cite-id-P8SsXOcBTk)\n\n## Key Features\n\n### Benchmark Yield Strategy (BYS)\n\n1. **Carry-trade strategies** - When carry-trade yields outperform other options, the protocol allocates funds accordingly\n2. **Algorithmic Market Operations (AMOs)** - When [DeFi](https://iq.wiki/wiki/defi) yields are superior, funds are directed to various [DeFi](https://iq.wiki/wiki/defi) protocols through AMOs\n3. **Interest on Reserve Balances/T-Bill (IORB) rate** - When traditional finance yields are highest, funds are allocated to [RWA](https://iq.wiki/wiki/real-world-assets-rwas) strategies holding short-dated (<90 days) United States Treasury Bills [\\[2\\]](#cite-id-P8SsXOcBTk)\n\nThis adaptive allocation mechanism ensures that sfrxUSD holders consistently earn the highest risk-adjusted yield available in the market without having to manually move between different yield-generating stablecoins [\\[3\\]](#cite-id-y8oaYxOKZV)\n\n### Non-Rebasing Design\n\nUnlike some yield-bearing tokens that implement a rebasing mechanism (where token balances change in wallets), sfrxUSD maintains a constant token count while the exchange rate between sfrxUSD and [frxUSD](https://iq.wiki/wiki/frxusd) increases over time. This design offers several advantages:\n\n* Simplified accounting for users and protocols\n* Better compatibility with DeFi protocols that aren't designed to handle rebasing tokens\n* Predictable behavior for smart contract interactions [\\[1\\]](#cite-id-RuxAX7IWn6)\n\n## Role in the Frax Ecosystem\n\nsfrxUSD plays an important role in the broader [Frax](https://iq.wiki/wiki/frax) Finance ecosystem by:\n\n1. Providing a yield-bearing option for [frxUSD](https://iq.wiki/wiki/frxusd) holders\n2. Enhancing the utility of [frxUSD](https://iq.wiki/wiki/frxusd) as a [stablecoin](https://iq.wiki/wiki/stablecoin)\n3. Creating additional demand for [frxUSD](https://iq.wiki/wiki/frxusd) through yield opportunities\n4. Supporting the overall stability and growth of the [Frax](https://iq.wiki/wiki/frax) ecosystem [\\[3\\]](#cite-id-y8oaYxOKZV)","summary":"Staked Frax USD (sfrxUSD) is a yielding stablecoin in the Frax Finance ecosystem, offering competitive on-chain yields through a benchmark-rate strategy.","images":[{"id":"QmexdgCThD8BQGzoUnewazuWYCYeWNeogqeEkKfMEgWJHX","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"cryptocurrencies"}],"tags":[],"media":[{"id":"Qmb19j3tjTqcbZ62vTXQpZ2GfziRHMxmM4vBpL3ULxLuYX","type":"GALLERY","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"RuxAX7IWn6\",\n    \"url\": \"https://docs.frax.com/protocol/assets/frxusd/sfrxusd\",\n    \"description\": \"Frax Documentation\",\n    \"timestamp\": 1744055704999\n  },\n  {\n    \"id\": \"P8SsXOcBTk\",\n    \"url\": \"https://coinmarketcap.com/currencies/staked-frax-usd/\",\n    \"description\": \"CoinMarketCap\",\n    \"timestamp\": 1744055704999\n  },\n  {\n    \"id\": \"y8oaYxOKZV\",\n    \"url\": \"https://frax.com/\",\n    \"description\": \"Frax Finance Website\",\n    \"timestamp\": 1744055704999\n  },\n  {\n    \"id\": \"mSm68fX776\",\n    \"url\": \"https://github.com/FraxFinance/staked-frax-erc4626/blob/public/src/contracts/StakedFrxUSD.sol\",\n    \"description\": \"GitHub Repository\",\n    \"timestamp\": 1744055704999\n  }\n]"},{"id":"github_profile","value":"https://github.com/FraxFinance"},{"id":"discord_profile","value":"https://discord.com/invite/fraxfinance"},{"id":"telegram_profile","value":"https://t.me/fraxfinance"},{"id":"fraxscan","value":"https://fraxscan.com/token/0xfc00000000000000000000000000000000000008"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/staked-frax-usd"},{"id":"etherscan","value":"https://etherscan.io/token/0xcf62f905562626cfcdd2261162a51fd02fc9c5b6"},{"id":"website","value":"https://frax.finance/"},{"id":"medium_profile","value":"https://fraxfinancecommunity.medium.com/"},{"id":"arbiscan","value":"https://arbiscan.io/token/0x5bff88ca1442c2496f7e475e9e7786383bc070c0"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/staked-frax-usd/"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmUcbR9Fn3QK24um4WGtXj3gHEaLfT8Z2vcuwnC23rueMB\""},{"id":"commit-message","value":"\"Republish wiki\""},{"id":"previous_cid","value":"QmUcbR9Fn3QK24um4WGtXj3gHEaLfT8Z2vcuwnC23rueMB"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["frax-finance"],"founders":["sam-kazemian","travis-moore"],"speakers":[]}}