This is a temperature check proposal concept for FRAX to deploy an upgraded version of sfrxETH with a higher yield rate by using strategies that are similar to those that generate yield for sfrxUSD.
Tokens such as superOETH exist with 6%ish apr that utilize layers of yield strategies.
It should be relatively easy for the geniuses behind FRAX protocol to deploy an ETH yield token with returns equal to or better then superOETH.
An upgraded version of sfrxETH would create another rallying point for investment into the FRAX ecosystem as well as another source of revenue for the FRAX protocol.
The yield bearing USD crypto markets are over saturated with tons of high yielding options, some of which occasionally have higher yields then sfrxUSD. Its no wonder FRAX is struggling to get market dominance with its sfrxUSD produxt.
By comparison, the $53 Billion dollar plus ETH derivative markets are composed over 99% of ETH token derivatives with less then 3.7% APR.
By either adapting sfrxUSD strategies, or mirroring SuperOETHs strategies, FRAX could relatively easily produce superfrxETH with a 5-6% APR and by doing so capture a big chunk of that $53 Billion dollar market.
I dont trust superoETH. I would however trust superfrxETH. I think many other people will feel the same.
Plus FRAX can then use superfrxETH to generate higher yields from its Treasury held ETH. Some of that could go as a big revenue boost for FRAX stakers.
I think this is a simple decision to make. Just copy superOETHs strategies if you have to. I bet FRAX can do even better then superoETH.
It could literally be as simple as using sfrxETH as collateral to borrow stables, then convert those stables into sfrxUSD (or sdUSD/scrvUSD) strategies. Use added yields over the borrowing cost to give added yield to superfrxETH.
Automate the above and there we have it. SuperfrxETH.
Hi @starseedsprotocol can you please rewrite your proposal with following format:
Title:
[TEMP-CHECK] Descriptive Title
Authors:
Your name or handle (forum/Discord name if applicable)
Summary:
A short summary (2–3 sentences) explaining what this proposal does and why it matters. Keep it understandable to someone not familiar with the context.
Background & Motivation:
A short explanation of what led to this proposal. Focus on:
1–3 short paragraphs max, or bullets for clarity.
Proposal Details:
Break down what you’re proposing. Use clear bullet points or short paragraphs. Example structure:
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What will be done
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Parameters involved (e.g. % fees, amounts) - For Temp-check proposals you dont need to specify their numbers.
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Which contracts/pools/tokens are involved
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Any implementation high-level details
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