Staked Frax USD (sfrxUSD) is a yielding stablecoin designed as an ERC4626 token. It provides users with a reliable way to earn yield while maintaining the stability of the underlying asset. Users can redeem sfrxUSD for frxUSD at an increasing rate, which is tied to its yield mechanism, ensuring that there are no unstaking fees or price impacts. The unique design of sfrxUSD focuses on a benchmark-rate strategy that leverages three governance-approved strategies: carry-trade, algorithmic market operations (AMOs), and the Interest on Reserve Balances/T-Bill (IORB) rate. This strategic approach enables sfrxUSD to offer a competitive annual percentage yield (APY) within the on-chain ecosystem. As a non-rebasing token, sfrxUSD ensures that the value remains stable, providing users with peace of mind while they earn yield. Its structure makes it an attractive option for those looking to maximize returns on stablecoin investments while maintaining liquidity. Overall, sfrxUSD stands out in the DeFi landscape by combining yield generation with stability, making it a valuable addition to the cryptocurrency ecosystem.