Protocol Infrastructure Overview
The diagram below illustrates how Frgmnt works under the hood - from stablecoin deposits to yield distribution. It shows the full lifecycle of user interaction and protocol operations across the dual-token system.
Strategy Factory & Dynamic Deployment
The Strategy Factory generates wrappers for different yield strategies.
The Meta Vault dynamically allocates capital across various stablecoin strategies based on real-time performance and risk assessments.
Supported strategies include USDC, DAI, USDT, and other protocol-vetted vaults.
Yield Harvesting & Distribution
Instead of distributing yield directly, the system increases the total value backing sfUSD — meaning each sfUSD token represents a larger share over time.
80% of the harvested yield is compounded into the sfUSD pool, passively benefiting all stakers.
20% is allocated to protocol sustainability, covering development, reserves, and strategy optimization.
Users can claim their share of the accumulated yield at any time, without penalties, simply by redeeming part or all of their sfUSD in claimable Balance.
Dual-Token Flow Summary
fUSD Token: transferable, pegged 1:1 to USD
sfUSD Token: non-transferable, yield-bearing token representing a staked position
Yield is accumulated passively and compounded automatically via the Meta Vault.
fUSD
✅
❌
None
sfUSD
❌
✅
24h
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