Are you looking for a secure, transparent, and convenient stablecoin? Then you can't miss the $frxUSD & sfrxUSD launched by @fraxfinance!
Today, we will provide a comprehensive introduction to Frax Finance's frxUSD and sfrxUSD, covering mechanisms, compliance, transparency, yields, partnership background, and participation guidelines, giving you a complete understanding to embark on a path of secure and stable returns👇
2/ Stability Mechanism: Full Collateral + High Security
frxUSD is reliably custodied by well-known institutions (Enshrined Custodians), holding cash equivalents such as USDC, BUIDL, USTB, JTRSY, etc.
Custodians include: Circle, Securitize, BlackRock (through the BUIDL fund), WisdomTree, and others.
This ensures that frxUSD maintains a 1:1 peg and that funds are safe and secure.
3/ sfrxUSD's yield mechanism: Non-Rebase, yields grow proportionally
sfrxUSD is a yield token compliant with the ERC4626 standard.
No rebasing, does not affect wallet balance.
Users stake frxUSD to receive sfrxUSD, with value growing proportionally over time (yields come from governance strategies).
Suitable for long-term holding to enjoy compound interest.
5/ Transparency: Fully On-Chain
All custodian addresses are publicly accessible on-chain, for example:
📎
All governance proposals can be reviewed by the community.
The yield strategy of sfrxUSD is also publicly disclosed (AMO, carry-trade, T-Bill).
Truly achieving #DeFi level transparency and TradFi level trust.
6/ Cooperative Ecosystem: A strong combination of DeFi and TradFi
Hosting & Strategy Partners include:
TradFi：BlackRock、Circle、WisdomTree、Securitize
DeFi：Curve, Convex, Aave, Ethena, Compound
This allows frxUSD to have compliant credit backing, and sfrxUSD to have an on-chain yield strategy.
Data Sources:
7/ High Yield Returns: sfrxUSD's BYS Strategy
sfrxUSD automatically selects the best yield path through the BYS (Benchmark Yield Strategy) system:
✅ DeFi AMOs
✅ IORB / US Treasury Rate Strategy
Current annualized yield APY is as high as 11.63%
8/ Why is Frax Finance trustworthy?
🏛️ Designed fully in accordance with US GENIUS stablecoin regulations
🔍 All fund flows are completely transparent and traceable on-chain
🤝 Collaborating with leading institutions such as Securitize, BlackRock (through the BUIDL fund), and WisdomTree
🧠 Backed by the Frax team led by @samkazemian, who has launched innovative products like Fraxtal, Frxeth, Fraxlend, and Fraxswap.
Join the frxUSD / sfrxUSD ecosystem and embark on a stable, compliant, and high-yielding crypto journey!
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