New collateral added to the Stake DAO frxUSD curated vault on Morpho: the OnlyBoost LP from the Curve crvUSD/frxUSD PegKeeper. ↳ Deposit crvUSD/frxUSD on CurveFinance ↳ Stake t...

Stake DAO has expanded the collateral set for its frxUSD curated vault on Morpho by adding the OnlyBoost LP token from the Curve crvUSD/frxUSD PegKeeper pool as eligible collateral. The flow promoted by Stake DAO is: deposit crvUSD/frxUSD liquidity on Curve Finance, stake the resulting LP in OnlyBoost, then use that OnlyBoost LP as collateral on Morpho to borrow frxUSD, which is in turn lent out via the Stake DAO frxUSD vault. This effectively connects Curve’s crvUSD–frxUSD liquidity, Stake DAO’s yield-optimization layer, and Morpho’s lending markets into a single leveraged stablecoin strategy. The Stake DAO frxUSD vault on Morpho is designed as a curated lender vault that focuses on specific Stake DAO LP collaterals, aiming for relatively conservative risk while maximizing yield for frxUSD depositors. OnlyBoost itself is Stake DAO’s “neutral optimizer” that algorithmically routes Curve LP positions between Stake DAO and Convex boost infrastructure to capture the best available veCRV boost and CRV rewards without adding extra protocol fees. By whitelisting the crvUSD/frxUSD PegKeeper OnlyBoost LP, Stake DAO enables LPs in that pool to tap additional utility: they can keep earning boosted Curve/OnlyBoost yields while also unlocking borrowing power on Morpho, increasing capital efficiency for both crvUSD and frxUSD liquidity providers. This addition follows rapid early growth of the frxUSD curated vault, which crossed around $6 million in deposits within a week and was reported as the highest-yielding stablecoin vault on Morpho on Ethereum at that time. It also fits into a broader alignment between Frax and Stake DAO around OnlyBoost routing for Curve-based frxUSD liquidity, as reflected in Frax governance discussions that describe OnlyBoost as a venue-neutral optimizer for sfrxUSD and frxUSD Curve AMOs. For ecosystem participants, the move matters because it deepens liquidity and utility around Frax’s frxUSD and Curve’s crvUSD pair while reinforcing Stake DAO’s position as a yield and boost layer atop Curve, now tightly integrated with Morpho’s credit markets. "entities":["Stake DAO","Stake DAO frxUSD curated vault","Morpho","OnlyBoost","Curve Finance","Curve crvUSD/frxUSD PegKeeper pool","crvUSD","frxUSD","Frax Protocol","Frax Finance","Curve AMO","Convex Finance","Stake DAO OnlyBoost LP","Merkl","MetronomeDAO"]}`

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• 435] Allow the use of Stake DAO OnlyBoost for sfrxUSD Curve AMOs (gov.frax.finance)
• Stake DAO (@StakeDAOHQ) on X (x.com)
• Stake DAO (x.com)
• only-boost/audit/StakeDAOPreliminaryAuditReport.md at main (github.com)
• Stake DAO frxUSD v2 vault - Morpho (app.morpho.org)

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