Staked Frax USD (sfrxUSD) is a yielding stablecoin designed as an ERC4626 token on the Ethereum network. It provides users with a fully redeemable asset, allowing them to exchange sfrxUSD for frxUSD at an increasing rate based on its yield mechanism. Notably, sfrxUSD does not experience rebasing, ensuring that users can redeem it for the underlying frxUSD without facing unstaking fees or price impacts. What sets sfrxUSD apart is its innovative yield strategy, which targets a benchmark-rate approach. This strategy alternates among three governance-approved methods: carry-trade, algorithmic market operations, and the Interest on Reserve Balances/T-Bill rate. This dynamic approach allows sfrxUSD to maintain a competitive annual percentage yield (APY), making it an attractive option for users seeking to earn yields on their stablecoin holdings. As a part of the Frax ecosystem, sfrxUSD contributes to the overall functionality and efficiency of the platform. By leveraging sophisticated yield strategies, it ensures that users can access the best possible returns while maintaining the stability expected of a stablecoin. In summary, sfrxUSD offers a unique opportunity for users to engage with a yielding stablecoin that stands out in the market due to its competitive yield mechanisms and redeemable nature. It is designed for those who wish to maximize their returns while enjoying the security of a stablecoin.