Why frxUSD is becoming DeFi's superior PegKeeper on Curve? 👑
Traditional stablecoin pairs like USDC and USDT have long been the standard for pegkeeping mechanisms in DeFi.
However, these pairs come with a hidden cost: their underlying Treasury yields flow to Circle and Tether, not to the protocols using them.
ethereum:0xcacd6fd266af91b8aed52accc382b4e165586e29 changes this dynamic by offering the same secureness while forwarding Treasury yields to incentivize partner liquidity, creating a sustainable, win-win economic model.
How the Economics Work in @CurveFinance Pools?
ethereum:0xcacd6fd266af91b8aed52accc382b4e165586e29 is backed by yield-generating Treasuries (e.g., via BlackRock, Superstate, etc.).
That yield gets directed back into liquidity incentives (Curve gauges, bribes, etc.).
Result: Deeper liquidity, tighter spreads, better peg stability, and more trading volume/fees — without constant paid emissions.
Concrete example (crvUSD/frxUSD pool):
Pool TVL: $14.1M
frxUSD Liquidity: ~$7.8M (55%)
frxUSD Yield Contribution (3.4%): ~$265K/year
This yield continuously supports liquidity incentives → stronger peg + less reliance on CRV emissions.
Contrast with traditional setups (e.g., USDC pool with PayPal's PYUSD case):
The Treasury yield accrues to the issuer (Circle or PayPal for PYUSD).
Protocols/LPs still have to pay for liquidity via emissions, bribes, or treasury spend.
How much cost to maintain this liquidity?
In the case of USDC/PYUSDC with 50M$ TVL targeting a 5% base+incentives APR is a cost to maintain this liquidity of 2,5 M$ per year.
This creates an expensive, often unsustainable model over time.
No yield flows back to LPs or the partner protocol.
This is why Traditional PegKeepers (like USDC/USDT or PYUSD-style) are loosing vs frxUSD.
Same peg.
Better economics.
frxUSD is quietly winning DeFi 👑
TODAY: 10:05–10:45 AM, NYC time!
@stable_summit 🗽
First panel on the main stage:
“Is the Yield Competitive?”
Featuring:
• @samkazemian – @Frax
• @cyrille_briere – @protocol_fx
• @PetrHluze – @NammuCapital
(moderator)
• @Benjamin918_ – @CapApp
• @Nick_van_Eck – @withAUSD
We’re hyped to watch Sam as one of the last true OGs in the stablecoin game, joined on stage by fellow veterans, who’ve been building through every market cycle.
Together they’ll dig into what “competitive yield” really means for the next generation of stablecoins and onchain liquidity.
South Korea’s stock market has been one of the strongest performers in the world over the last 18 months up +260%, now the 6th largest equity market globally.
Two powerful engines are driving this rally.
Both are highly bullish for @KrwqCash , the first Korean Won stablecoin 🧵
@CharmanderX81 Tokenized Private credit is starting to emerge on DeFi to generate yield. We need to make clear the difference between this and solid stablecoins. Well written ⚔️
8/8
South Korea is experiencing more than just an AI-driven rally.
It’s a structural shift: dominant position in AI infrastructure + meaningful corporate governance improvements.
KRWQ lets global participants access this momentum on-chain in native KRW with institutional rails.
The Won you know. The power of crypto you didn’t.
Check it out → https://t.co/8fCSbcRfMa
What’s your take? is KRWQ one of the most under-the-radar stablecoin opportunities right now? 👀
@FraxForce
7/8
Frax’s role adds real strength here.
KRWQ integrates with Frax’s institutional infrastructure and FraxNet’s cross-chain capabilities.
This gives it the robustness, liquidity, and compliance profile that serious capital requires
not just another experimental stablecoin.
Imagine depositing a yield-bearing stablecoin and getting paid to borrow against it.
In this example on @dTRINITY_DeFi,
it starts with $sfrxUSD:
• You deposit sfrxUSD as collateral, and it keeps earning its own yield (currently around ~3.8% APY in this setup).
On top of that, you borrow dUSD against this collateral:
• The Net Borrow APY on dUSD is currently about 0.31% , so you’re effectively being paid to borrow.
Put together: your $sfrxUSD collateral earns, while your $dUSD debt currently earns as well, both working for you at the same time.
Deposits on Ethereum for Aave V4 are already up ~200%(may), reaching ~$120M.
real adoption👀
Aave V4 is being positioned as modular lending infrastructure, designed to plug into broader ecosystems like Arc.
The Arc deployment proposal even adds a clear economic alignment layer,
$2M/year minimum revenue commitment to the Aave DAO over 5 years ($10M total).
This is infrastructure expansion at ecosystem scale.
Longer term, the direction points toward tighter integration between traditional financial rails and DeFi systems, where onboarding and capital movement become increasingly seamless and abstracted away from complexity.
Still early, but the signal is strengthening.
@aave’s role in crypto,imo will extend far beyond lending infrastructure.
I think it will become an everyday lending hub for everyone across the world, not only crypto natives. They already have the branding and they have the trusted system to be the apple of crypto money markets that will be easy reachable for everyone at anytime to earn more on your own money.
$AAVE will Win.