Frax Staked frxUSDSFRXUSD#596

Staked Frax USD (sfrxUSD) is a yield-bearing stablecoin built as an ERC4626 token. You hold it, you earn. The token redeems directly for frxUSD at an increasing rate tied to the yield it generates—no lock-up periods, no unstaking fees, no slippage. It doesn't rebase, so your balance stays clear and predictable. What sets sfrxUSD apart is how it sources yield. The protocol rotates between three governance-approved strategies: carry-trade operations, algorithmic market operations (AMOs), and the Interest on Reserve Balances rate (IORB). This switching mechanism ensures sfrxUSD consistently captures the best available yield on-chain at any given time. You're not locked into a single strategy or rate. The redemption mechanism is straightforward—your sfrxUSD grows in value as yield accrues, meaning you can exit to frxUSD whenever you need to without friction. Deposit, earn, withdraw. That's the structure.