Boosted Frax Staking Now Live!

Continuing the work between Frax Finance and Convex Finance, the Frax portion of Convex expands further today. Select Liquidity Pools from Frax Finance can now be staked on Convex, with additional pools coming soon.

  • Vesper Orbit FRAX

Similar to the way Convex works for Curve.fi, Frax LPs can enjoy socialized (and simplified) boosting mechanics for their LP positions when staked on Convex Finance. However, Frax Finance allows LPs from various venues to participate. LPs originating from Uniswap, Sushiswap, AAVE, or any multitude of other platforms have the potential to be hosted on Frax, and, by extension, Convex.

For Liquidity Providers

LPs who want to start staking on Convex need to do the following:

  • Obtain LP tokens from the original source; For LPs currently staked on Frax, this means unstaking/withdrawing from Frax.

Fees

Similar to protocol-level fees for Curve pools, Frax pools are subject to fees when staked on Convex.

  • 10% of all FXS earnings will be distributed to cvxFXS LPs as FXS

For Vote-Locked CVX Holders

vlCVX holders will collect 7% of all FXS emissions from pools staked on Convex, paid out as cvxFXS.

Frax governance proposals will be available for vlCVX holders to vote on immediately (for vlCVX locked prior to the start of the epoch). Voting will take place on Snapshot.

For now, Convex will allocate the protocol’s veFXS to optimize liquidity and FXS rewards for vlCVX holders and LPs during gauge-weight votes. Rationale:

  • Supported LP’s are relatively small; the hope is that the addition of Convex staking will attract more liquidity to Frax pools

Eventually, Convex vlCVX holders can participate in gauge-weight votes for Frax Finance pools. A full explanation of the Frax staking and gauge system can be found in their documentation.

Documentation is still being finalized, and will be updated shortly outlining the newly released Frax functionality of the Convex website. In the mean time, please feel free to join the Convex Discord for any questions or discussion.

And be sure to follow Convex on twitter.

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