If you haven't checked the Frax staking page for a hot minute.. FXB's have some eye watering yields.
Yes, that's right, 9,293% and 10,920% for the two longer dated FXBs. Incredible. This is one of the best opportunities right now on Arbitrum and we've got a full breakdown of how to mint and stake FXB's on Arbitrum.
What are FXB's
Frax Bonds offer discounted FRAX at rates that are similar to off-chain short term treasury yields. By choosing one of 3 annual maturity dates, a FRAX holder can swap their FRAX away and be sure they will earn a fixed yield over the period. Frax Bonds mature on December 31 or June 30. As soon as the nearest token matures, a new token appears in the factory for minting.
FXBs can be bought on-chain in an entirely permissionless manner using a gradual Dutch auction (GDA) mechanism in governance approved batches.
The easiest way to get FXB's is to mint them through the Frax Bonds page.
Choose either of the longer dated expirations (FXB_20241231 and FXB_20261231).
You will have to wait for the end of the auction to receive your FXB's. The latest auction will expire on January 30, 2024.... In a week's time.
How to Buy FXB's
If you don't want to wait a week, which is a millennium in terms of farming, you can always buy FXB's through Curve on Ethereum.
Go to Curve and search for FXB's. Select one of the two longer dated expiries. We recommend that you swap with FRAX, which is the paired asset. You'll get better slippage and won't have to deal with the intra-trade swap.
The Curve pools are relatively deep, a near $100k swap of Frax for FXB's only incurs .14% slippage.
Bridging FXB's to Abitrum
You will need both FRAX and FXB's to enter the Curve pool on Arbitrum without high slippage.
FXB's can be sent to Aribtrum relatively quickly using the native Arbitrum Bridge. You will need the contract address for either FXB's.
FXB_20241231 - 0xF8FDe8A259A3698902C88bdB1E13Ff28Cd7f6F09
FXB_20261231 - 0x76237BCfDbe8e06FB774663add96216961df4ff3
Connect your wallet, sign an approval and fire off a transaction. Your FXB's will arrive shortly.
Bridging FRAX to Arbitrum
If you have time, you can bridge FRAX to Arbitrum using FraxFerry. This process is slow and can take up to 48 hours.
If you want FRAX now, use Bungee Exchange, which is a bridge aggregator. It will find you the best route for whatever asset on whatever chain onto Arbitrum. If a FRAX route is not available, choose USDC instead. Then you can swap the USDC on Curve once it arrives.
Deposit FRAX and FXB to Curve LP
Choose how much FRAX and FXB's you want to LP. Curve will determine the slippage and how the trade will be placed.
Deposit LP on Convex
Go to Convexfinance.com. Make sure to choose the "Curve" option. While the FXB LP is a Frax product, it's hosted on Curve and so it won't show up on the Frax-Convex page.
Choose Arbitrum One to filter Curve LP pools, then Search Pools for FXB. Choose the expiration you've deposited into for Curve.
Choose the amount of LP tokens to stake. Approve the transaction, then Deposit & Stake your LP.
Stake Lock LP on FXS gauge
Go to the official Frax staking page. The two FXB Curve pools on Arbitrum should be right at the top. They are the first two options.
Choose the amount to stake and the locking period. You can stake for up to 3 years, however the FXB's do have a fixed maturity date. Locking for longer than your maturity date means you eventually will stop earning yield from the FXB and most likely you will not earn swap fees anymore once maturity ends.
Approve the transaction, click stake and you're done!
Have a Question?
We hope this guide helped you navigate adding FXBs as liquidity on Arbitrum. If you have any further questions, jump in to the Flywheel Telegram. We're always around to help you out.