Guide: How to stake your FXS and earn veFXS yield.
In this guide we will demonstrate how to stake your FXS tokens using Frax Finance dashboard.
Frax Finance introduced a FXS staking program (veFXS), that rewards 50% of the AMO profits to FXS stakers.
1- How to get FXS tokens?
you can buy FXS from BINANCE or UNISWAP.
- Head to BINANCE exchange and buy FXS :
- Send your FXS from BINANCE to your MetaMask wallet via (ERC20) Ethereum network.
- Connect your MetaMask extension to UNISWAP, then purchase the desired amount of FXS you like to stake using the link below:
2- How to stake your FXS tokens ?
- Now you got FXS tokens in your MetaMask wallet, you will need to stake them.
- Head to our veFXS Dashboard link: https://app.frax.finance/vefxs and connect your MetaMask wallet.
- Now your FXS tokens should appear in the “Lock FXS for veFXS” section, click on “Available” to add them.
- You can choose to lock your FXS for 7 days up to 4 years, the longer period you choose, the more veFXS you will get.
- APR is based off of veFXS = 0.25 FXS (790% at the moment), in this example we will use a 365-days Lock.
- Click “LOCK”
(NOTE : APR is subject to change depending on TVL & Price )
- A MetaMask transaction will pop-up to Approve your FXS tokens spending, Confirm the transaction.
- A second MetaMask transaction will pop-up to Stake your FXS tokens, Confirm the transaction.
- You will need to Initialize after you create your veFXS for the first time, this is how the yield distributor contract starts tracking your claim, you only have to do it once.
- click “Initialize” a MetaMask transaction will pop-up “confirm” it.
Congratulations, you have successfully staked your FXS, you should NOW Start receiving FXS REWARDS!
About Frax Finance
Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
FRAX : is the stablecoin targeting a tight band around $1/coin.
Frax Shares (FXS) : is the governance token which accrues fees, seigniorage revenue, and excess collateral value.