The May 2022 stablecoin crash was catastrophic. It slashed over $17 billion in crypto’s market capitalization. To say that the crash affected stablecoins would be a huge understatement. But for Frax—DeFi’s first fractional-algorithmic stablecoin protocol—the peg has remained robust. This is in large part due to Frax’s locked liquidity system. In fact, locked liquidity has protected the stablecoin against sell pressures and mitigated against freefall.
Locked liquidity is a tried and true method of defending pegged assets, and its yields for doing so are invaluable to the ecosystem. But how can you take your yield to the next level?
By using Pitch’s veFXS treasury to further boost your LP tokens.
More Farming, Less Thinking
For farmers already providing liquidity on any of our supported ecosystems, making use of Pitch Farming is simple. You will simply have to provide your liquidity tokens to us using the Governance Console. Then, with our collective veFXS, your LP tokens enjoy generous boost on top of conventional yield. Frax farmers, for example, can provide Pitch with their LP tokens for us to farm on their behalf and distribute boost back to. So, by staking your LP tokens with Pitch, you not only tap into new boost. You keep the Pitch, Frax, and Curve flywheels spinning while strengthening DeFi as a whole.
Even if you don’t currently hold LP tokens, there is no delay or grace period to farm with Pitch. If you are looking to provide liquidity on any Frax or Curve pool, you can deposit your LP tokens with Pitch immediately after minting them to maximize your yield ASAP.
The best part? This process is passive, meaning Pitch earns your boost with no required action from you. You can just sit back and count your rewards while making Pitch’s veFXS treasury work for you. Pitch Farming is—as always—permissionless, on-chain, decentralized, and unquestionably effortless. Plus, it is scalable, and we fully intend to leverage this scalability to provide even more benefits to LPers in the future.
Learn More
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All Content in this publication is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this Post constitutes professional and/or financial advice, nor does any information therein constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.
There are risks associated with investing in cryptocurrencies and participating in decentralized governance. Pitch encourages all interested parties to undertake appropriate precautions before making any investments or participating in governance measures.