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.
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.
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.
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
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None
sfUSD
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