Another underrated Superchain L2 campaign

Fraxtal’s FXTL campaign is an excellent opportunity to earn rewards with a relatively small investment. Here's my exact playbook that helped me rank 5,435 with just $100 deposited.

Fraxtal is a Superchain L2 by @fraxfinance, offering a points system to incentivize participation. FXTL points can be converted to either:

• A separate staking token for the chain (FXTL)

• FXS based on a specified ratio

Points must be tokenized no later than 12 months after Fraxtal’s mainnet launch. More details can be found in their documentation.

Understanding the mechanics can be confusing, but after some trial and error, here’s what worked for me:

You earn FXTL by holding assets or depositing them into protocols on Fraxtal. Some of the assets that earn FXTL include:

• frxETH/wfrxETH/sfrxETH (Frax's liquid staking derivative of ETH)

• FXS (Native token)

• FRAX/sFRAX (stablecoin)

• FPI (tracks Consumer Price Index)

• Borrowing FRAX with other tokens as collateral

• Deposits on Glyph (money-market)

• Bonds (FXB...)

• Curve/Balancer LPs

Each asset earns FXTL at different rates. Here are the options I chose to maximize my points:

I used @squidrouter to bridge both FRAX and frxETH (for gas fees) to Fraxtal. Only a small amount of frxETH is needed as gas fees on Fraxtal cost < $0.01. The fees are decent, and I even had a positive slippage of $0.78 when bridging over.

Holding FRAX earns more FXTL (1x vs 0.85x), but staking FRAX for sFRAX, which tracks the interest on reserve balances (IORB) rate of the United States Federal Reserve, is more beneficial. I currently earn an APY of 7.6% by staking FRAX, and it’s possible to unstake sFRAX immediately back to FRAX. Stake FRAX here.

I deposited sFRAX on Glyph Finance and borrowed FRAX. Despite the borrow APY being ~7%, the staking APY of ~7.6% makes it a net positive APY.

Balancer accepts single-sided deposits, so I deposited sFRAX directly into the pool. Staking FRAX for sFRAX again before depositing was necessary. Currently, I'm earning a 20% APR thanks to the OP incentives offered by the SuperFest campaign. Add liquidity here.

• Earnings: I'm earning FXTL from glyphsFRAX (0.85x FXTL/hour) and Balancer sFRAX/sDAI/sUSDe (0.77x FXTL/hour) while earning a decent yield on my deposits.

• Leaderboard: Check your position with this leaderboard. With $500 and $100 deposited across two wallets, my rankings are #4,793 and #5,435, respectively.

• SuperFest Campaign: Depositing in the sFRAX/sDAI/sUSDe pool helped me earn 5 JumperExchange XP. My strategy for SuperFest.