How to Restake sFRAX: Your Ultimate Guide for Stablecoin Yield

November 05, 2024

Ready to unlock more potential from your sFRAX tokens? This guide covers everything you need to know to start liquid restaking on InceptionLRT. Follow our step-by-step walkthrough for restaking, learn how to bridge to Fraxtal, and discover extra yield opportunities through DeFi integrations like Curve. Whether you’re focused on stablecoin rewards or building a broader DeFi strategy, this guide is your roadmap to maximizing sFRAX’s potential.

What is sFRAX?

sFRAX is a liquid staking token within the Frax Finance ecosystem. It represents staked FRAX, providing users with a way to earn stablecoin yield while keeping their assets liquid. Built on the ERC-4626 standard, sFRAX allows users to engage with DeFi protocols to generate both staking and restaking rewards.

As a low-risk stablecoin option, sFRAX offers steady returns in the DeFi space without compromising liquidity, making it ideal for users seeking predictable income from their digital assets.

Understanding Frax Finance

Frax Finance, the team behind sFRAX, is known as the first fractional-algorithmic stablecoin protocol. The platform’s goal is to provide a scalable and decentralized algorithmic currency, and its assets include FRAX, FXS, and sfrxETH. The Frax ecosystem was co-founded by Sam Kazemian, and it is renowned for its real-world asset strategies and decentralized approach to stablecoin yield generation.

The protocol’s focus on innovative monetary models and DeFi adoption has made it a leading player in stablecoin yield products, with sFRAX being a key component.

How to Restake sFRAX on InceptionLRT: A Step-by-Step Guide

Follow these steps to restake your sFRAX and earn additional rewards through InceptionLRT:

Step 1: Connect Your Wallet

Go to the InceptionLRT dApp and connect your wallet. Ensure that you have sFRAX in your wallet, which is required to begin the restaking process.

Supported wallets include MetaMask, Trust Wallet, and WalletConnect, and others:

Wallet Options on InceptionLRTs dApp (Source)

Step 2: Access the Restaking Dashboard

Once your wallet is connected, access the Restaking Dashboard. You will find sFRAX listed among the available assets for restaking.

New Restaking options on InceptionLRTs dApp (Source)

Step 3: Select sFRAX and Enter the Amount

Choose sFRAX from the restaking list and input the amount you want to restake. Keep a portion of ETH for gas fees to finalize the transaction, since sFRAX Restaking is only available on the Ethereum mainnet at the moment.

sFRAX Restaking tab on the InceptionLRT dApp (Source)

Step 4: Approve the Transaction

After inputting the amount, your wallet will prompt you to approve the transaction. Confirm the spending cap, approve the transaction, and confirm on the dApp.

Step 5: Receive insFRAX LRT

Once the transaction is completed, you will receive insFRAX, representing your restaked sFRAX. You can add insFRAX to your wallet directly through the dApp interface.

Step 6: Manage and Monitor Your Holdings

Track your insFRAX holdings and the rewards accrued through the InceptionLRT dashboard. This allows you to monitor your DeFi strategy and optimize your position.

How to Unstake sFRAX

InceptionlRT offers two convenient methods to unstake your sFRAX based on your liquidity needs:

Standard Unstake: This option allows you to unstake your assets with a 15-day waiting period. After the waiting period, claim your tokens from the dashboard.
Flash Unstake: For immediate liquidity, the Flash Unstake option lets you access your tokens instantly, bypassing the waiting period. This feature comes with a dynamic fee that adjusts based on liquidity demand, offering flexibility for users in need of quick access to their funds.

Unstaking Options on InceptionLRTs dApp (Source)

Unstaking Steps:

Go to the Unstake Tab on the dashboard and select Manage for your insFRAX holdings.
Input the amount and choose between Standard or Flash Unstake.
Confirm the transaction in your wallet. With Flash Unstake, tokens are immediately available. For Standard Unstake, claim them after the 15-day period.

For a more in-depth look at Flash Unstake, explore our detailed blog: Flash Unstake Explained

Providing Liquidity with insFRAX on Curve for Extra Yield

InceptionLRT allows users to enhance their yields by leveraging insFRAX in Curve’s liquidity pools, now available on the Fraxtal blockchain. By adding insFRAX to Curve’s liquidity pool on Fraxtal, you can earn liquidity provider (LP) rewards and further boost your returns. Since the Curve pool is hosted on Fraxtal, users must bridge their assets to Fraxtal before adding liquidity.

Step 1: Bridging sFRAX to Fraxtal

Before adding liquidity on Curve, you need to bridge your sFRAX to the Fraxtal blockchain.

Visit the Bridge Page on the dApp: Navigate to the Inception Bridge page via the dApp.
Choose the Bridge Direction: Select the option to bridge your sFRAX to Fraxtal and switch networks if necessary.
Enter the Amount: Input the amount of sFRAX you wish to bridge.
Approve and Send: Press the Approve button, confirm the action in your wallet, and then press Send to initiate the bridging process.
Switch Network: Once the bridging is complete, press Switch Network to finalize the process.
Claim Tokens on Fraxtal: After switching, press the Claim button to receive your bridged sFRAX on Fraxtal.

InceptionLRTs Bridge tab on the dApp (Source)

Step 2: Add Liquidity on Curve

Once your sFRAX is successfully bridged to Fraxtal, you can add liquidity to the Curve pool.

Access Curve via InceptionLRT: Go to the DeFi Integrations section on the InceptionLRT dashboard and select Curve. Locate the insFRAX liquidity pool on Fraxtal.
Add Liquidity: Input the amount of insFRAX you want to contribute to the pool. Curve will display your share of the pool and the projected rewards.
Approve and Confirm the Transaction: Approve the transaction in your wallet and confirm the liquidity addition. Once done, you will start earning LP rewards.

insFRAX Curve Liquidity Pool on InceptionLRTs dApp (Source)

Step 3: Monitor Your Position

Monitor your liquidity position and the rewards you generate on Curve. You can remove liquidity at any time to access your insFRAX holdings.

Boost your Stablecoin Earning with InceptionLRT

Restaking sFRAX on InceptionLRT provides a great opportunity to enhance your stablecoin yield while maintaining liquidity. With integrations like Curve, users can maximize the potential of their assets through DeFi protocols. Whether you’re using Standard or Flash Unstake, InceptionLRT ensures that you retain flexibility and control over your assets.

Start restaking your sFRAX today and unlock the full potential of your digital assets!