Guys, if ETH staking rewards cannot yet be withdrawn how

Question

Frax Finance

SUBGURU

Guys, if ETH staking rewards cannot yet be withdrawn how

is your protocol paying out the yields from the sfrxETH staking? Where is this yield coming from?

#cryptocurrency #english #frax

0

11.12.2022

3 ответов

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sh354

Yield is paid but only ETH can't be withdrawn, not yield. Yield is paid in the form of frxETH into sfrxETH/frxETH pool making price of your sfrxETH growing over time so when you withdraw (unstake) you swap for more frxETH than you used to enter pool. And as frxETH is backed 1to1 with ETH you get more ETH in the end.

0

11.12.2022

SUBGURU Автор вопроса

sh354
Yield is paid but only ETH can't be withdrawn, not...

So who is sponsoring sfrxETH/frxETH pool then? Where is this surplus coming from? How is it possible that I get more ETH when exiting the pool?

0

11.12.2022

Justin Moore · Accepted Answer

Justin Moore

Rewards are paid in frxETH, similar to how Lido and other LSDs pay rewards in their LSD token. frxETH remains fully backed 1-to-1 with ETH (see the balance sheet: https://facts.frax.finance/frxeth/balance-sheet) Also, the MEV/tips portion of the staking rewards are paid directly to the frxETH Treasury on mainnet ("frxETH Treasury ETH Balance" on the balance sheet above)

0

11.12.2022

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Guys, if ETH staking rewards cannot yet be withdrawn how

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