frxUSD
The KPK frxUSD Earn Pool channels deposits into Gearbox’s Credit Account system across selected collateral markets. Yield comes from overcollateralised lending rates. Strict utilisation caps, quota limits, and dual-oracle pricing help preserve liquidity buffers and mitigate market risks.
The vault provides exposure to risk-adjusted frxUSD yield.
Key information
Chain
Ethereum
Protocol
Standard
Token
frxUSD
Liquidity target
15%
Fees
None for depositors. Borrowers pay an interest fee on top of the interest they accrue: 20% of that interest on mF-ONE, 10% on mGLOBAL (20% on existing positions in the earlier mGLOBAL Credit Manager, which is closed to new borrowing).
Utilisation target
85%
Strategy
Liquidity from this pool is lent to Gearbox borrowers through the Credit Account mechanism. Borrowers can use mF-ONE and mGLOBAL, both issued by Midas, as collateral to build leveraged positions. Each collateral has its own Credit Manager, so exposure to one is bounded independently of the other.
The pool doesn’t allocate funds on its own. Instead, it relies on borrower activity within pre-defined pool parameters set by KPK. Yield comes primarily from borrower interest rates.
This pool is designed to support real-world-asset (RWA) collateral while maintaining strict utilisation caps to preserve instant liquidity for depositors. Additional collateral markets may be onboarded over time as the pool's collateral set grows, following KPK's Curation Risk Framework.
Risk framework
The pool’s parameters follow KPK’s Curation Risk Framework, which governs asset due diligence, tiering, monitoring, and response procedures. All configuration and parameter updates are recorded in the Changelog page. Entries include scope, rationale, and transaction references for full transparency.
Risk-tier snapshot
Each asset in a KPK Gearbox market is linked to two price feeds: a main oracle and a reserve oracle. These typically combine a market-rate oracle (e.g., Chainlink or RedStone) and a fundamental oracle (reflecting the underlying exchange or redemption rate). The main oracle is used for account valuation and liquidation checks, while the reserve oracle serves as a safety reference during collateral withdrawals or external calls. This dual-oracle setup balances market accuracy with resistance to manipulation, protecting LPs during volatility events such as depegs.
Key risks
Collateral, market and price risk
Oracle manipulation, staleness, or failure
Liquidity crunches and liquidation cascades during stress events
Borrower strategy underperformance or insolvency (bad debt)
Smart contract vulnerabilities and external dependency risks
These risks are actively monitored and managed, but cannot be fully eliminated. For more information, see the Products Disclaimer.
Governance and controls
All critical changes flow through a layered governance structure designed for transparency, operational security, and rapid response when needed. Pool parameters (collaterals, oracles, debt limits, etc.) are updated by KPK through the Market configurator, with changes executed via a time-locked process:
Market configurator: Configures curated markets. One configurator can manage multiple markets
0x1B265B97EB169fB6668E3258007C3b0242C7bDBETimelock: Enforces a minimum 24-hour delay between approval and execution of pool changes
0xB680c52D339656C5808Df9c426DF1A2103Ed945aEmergency admin: Can perform a limited set of emergency actions (e.g. pause pools) without delay to protect solvency. See Gearbox Permissionless Docs for more details.
0x4Ad2419dc6DE75C3f57d7b6Aa200D494c74c1443
Last updated