TL;DR
- Overnight Finance and Frax Finance are partnering up to offer staking rewards for a new USD+/FraxBP liquidity pool.
- Staking in this pool can earn you high yields.
- To participate, deposit FraxBP and USD+ into the Curve pool, then deposit the Curve pool LP tokens into the Convex Gauge, and finally stake these in the FXS Gauge.
- This staking opportunity is focused on yield farmers, enabling them to boost their yields while ensuring the safety of their investments with USD+ and FraxBP.
Introduction
Get ready to boost your yields! Overnight Finance and Frax Finance are teaming up to offer exciting rewards for staking a new liquidity pool. This partnership introduces a new liquidity pool for USD+/FraxBP and offers exciting staking rewards on the Frax Finance Staking platform.
This simple guide explains how you can join our new staking opportunity.
About USD+ and FraxBP
USD+, the primary token of Overnight Finance, is a stablecoin designed to mitigate risk by diversifying funds across various proprietary delta-neutral strategies that generates passive yield for users by just holding in their wallet. It is fully collateralized with assets that can be instantly converted into USDC, reinforcing its stability.
FraxBP is a base pool token on Curve that is an alternative to 3CRV. It consists of only FRAX and USDC, while 3CRV consists of DAI, USDC, and USDT. FraxBP is deployed on mainnet in June 2022, as the second base pool token in addition to 3CRV on Curve Finance. Frax Protocol’s ecosystem is built around the $FRAX stablecoin, which is a crypto collateralized stablecoin pegged to the US dollar.
How It Works: A Step-by-Step Guide to USD+/FraxBP Staking
Overnight Finance complements Frax by offering an array of yield farming opportunities that yield returns overnight. Together, they provide an excellent platform for users to grow their digital assets.
To make the most of the USD+/FraxBP staking opportunity on Frax Finance, it’s important to understand the step-by-step process. Make sure you’re on Arbitrum network before following the steps. Let’s break it down:
- Deposit FraxBP and USD+ into the Curve pool: First, you need to supply your FraxBP and USD+ tokens to the Curve pool. (Curve Pool: https://curve.fi/#/arbitrum/pools/factory-v2-117/deposit)
- 1. You can acquire USD+ on the Overnight platform
1.2. You can acquire FraxBP by either depositing Frax and USDC.e directly on the pool
or you can deposit the FraxBP LP wrapped on that Curve pool by getting the FraxBP LP tokens at this link.
1.3. After getting the necessary tokens, you can deposit both tokens into the pool at this link. Remember, do not stake your assets just yet.
Note: You can also deposit either of the 3 tokens and Curve will automatically split it to be compatible with the LP. WARNING: Be aware of the slippage when doing it this way.
- 1. You can acquire USD+ on the Overnight platform
- Deposit the Curve Pool LP Tokens into the Convex Gauge: After depositing your tokens in the Curve pool, the next step is to deposit the Curve pool LP tokens you received into the Convex Gauge. You can do this here. It will be also staked at the same time on the Convex Gauge.
- Deposit the Convex Gauge LP Tokens into the FXS Gauge and Stake Them: Finally, deposit the Convex Gauge LP tokens into the FXS Gauge. This is where you stake your assets. Be aware, this step is crucial as your earning starts only after this step.
That’s it! You’ve now completed the process for USD+/FraxBP staking on Frax Finance. Now, sit back and enjoy the rewards of your efforts.
NB! Additional rewards can be achieved by locking your LP in the gauge for a certain duration, providing a boost of up to 2.5x.
Happy staking!
Conclusion
By following the simple staking process, you can start earning impressive yields from your USD+/FraxBP staking on Frax Finance. This is due to Overnight Finance’s incentives in their governance token, supported by the pool’s revenue as the USD+ rebases.
Should you need help, our team is always ready. Enjoy the rewards of yield farming!
About Overnight Finance and Frax Finance
Overnight Finance is a cutting-edge DeFi platform that unlocks new ways to earn rewards with your cryptocurrency. By using stablecoins – digital currencies pegged to the value of assets like the US dollar – Overnight offers lower-risk strategies to maximize your returns. Their native stablecoin, USD+, is a core component of their ecosystem, allowing you to participate in various yield-generating opportunities.
Frax Finance is a decentralized finance (DeFi) platform that provides a suite of financial services, including a stablecoin, liquidity pools, and staking rewards. It was created to offer a stable and decentralized currency through the use of a fractional-algorithmic stablecoin called FRAX. The platform also includes other subprotocols such as Fraxswap, Fraxlend, and Fraxferry to support these stablecoins
Frax Finance Staking System
Frax Finance Staking is a feature of the Frax Finance platform that allows users to stake their LP tokens in exchange of rewards. Overnight Finance will be able to utilize the system to incentivize the USD+/FraxBP liquidity pool. By deploying a gauge for this specific pool, Overnight Finance can reward users who provide liquidity in the form of USD+ and FraxBP tokens. This will encourage more users to participate in the liquidity pool, thereby increasing the overall liquidity and stability of the USD+ token.
