Edit Jan 19 2022: their APR dropped dramatically, due to non voting for this pool. Since Polygon users can’t vote (according to time of writing), it seems unfair and I’ve complained in their Telegram – they doesn’t seem to care so I encourage everyone strongly to withdraw funds from Frax Finance ASAP and if you’re locked for a long time – complain in their Telegram channel.
Frax Finance provides between 20% to 50% base APR for mStable FRAX/mUSD pool on Polygon. They also have other pools and support other networks, however I’ve tracked only this one and it seem stable and benefit for the past month, according to the time of writing (2021-11-25). You can boost the APR by locking your funds for up to 3 years, I used 2 months locking period which multiplies the APR by 1.11 factor.
Several people complained about cumbersome and confusing steps, mainly the FRAX smart contract address to use – but not only, so please follow the steps carefully
1. Prepare USDC or USDT or DAI or FRAX tokens in your wallet for Polygon network. From some reason (according to the time of writing, 2021-11-25) CoinGecko display different FRAX token and CoinMarketCap won’t display any Polygon smart contract address. On Frax Network docs you’ll find also the other FRAX token address… (if you used it accidentally – swap back here to the correct one) So please make sure you use only the following contract address for the following steps – 0x104592a158490a9228070e0a8e5343b499e125d0
2. Mint the stablecoins tokens in mStable website for mUSD/FRAX pool, in Deposit tab.
3. Go to staking FRAX-mUSD page, select the amount you minted before in deposit tab of staking screen, set the amounts of days to lock (affects the APR) and click STAKE.
Rewards can be claimed at any time – the funds are locked, not the rewards.
The rewards tokens are PolyFXS and MTA. There is not much to do with them, PolyFXS has some farming option on Sushi (22% APR with FRAX according to the time of writing), however it doesn’t seems to be interesting on these amounts.
I usually wait for the FXS reward token to be high and then swap them using 1Inch to stable coins (the MTA token is not significant.)
BTW FXS has another utility on ETH mainnet – staking it boosts your rewards and there’s also the bribes Curve-alike stuff, however in Polygon (and other non ETH networks) it’s just a rewards token.
PolyFXS / Frax Share (FXS) – 0x3e121107f6f22da4911079845a470757af4e1a1b
Meta (MTA) – 0xf501dd45a1198c2e1b5aef5314a68b9006d842e0
Does it autocompound?
No. You lock your funds and rewards are accumulated and can be claimed any time.
What do you do with your rewards. Manually compound or use for other opportunities?
The later – when FXS is high I swap it using 1Inch to USDC and once in a while send it away to Avalanche’s farming.
There’s also MTA as rewards, however it’s small, and I do with it the same thing.