Frax Finance Monthly Report #29 | July 2023.
A round-up of Frax Finance updates in a few minutes.
Project Updates:
1)[Liquid Staking Tokens]: Flywheel published a full guide covering all the major changes for FrxEth v2. Also how all LST’s are loans and why Frax’s frxETH V2 enables fully decentralized peer-to-pool lending and borrowing. Read the full article here.
2)[Partnership]: Frax Finance partnered with Resonate to provide Frax with a means to provide and incentivize FRAXETH LPs to lock their liquidity into desired pairs, for a predetermined duration. This collaboration aims to address the challenges associated with mercenary liquidity, paving the way for further innovations. Read more here.
3)[Podcast]: Flywheel interviewed Sam Kazemian, co-founder Frax Finance about the upcoming deployment of FrxEth v2 and the concept of liquidity staking. He discussed the success of FrxEth v1, the design process behind FrxEth v2, and the upcoming release of Fraxchain. Sam also shared his thoughts on account abstraction and the future of Frax Finance. Watch the full podcast here.
4)[Partnership]: Frax Finance partnered with Swell to create frxETH/swETH pool on Curve Finance. Users can provide liquidity using their frxETH/swETH LP on Curve Finance, then stake on Frax Finance app and earn reward.
5)[Fraxchain]: Flywheel released a recap episode of the recently announced information on Fraxchain. Sam also revealed that Fraxchain would most likely be launched by the end of the year. Listen to the interview here.
6)[Fraxchain]: Blockworks released an article on Fraxchain. In the article they explained how Fraxchain is designed as a Layer 2 rollup deriving its security from the Ethereum mainnet. Read the full article here.
7)[Exchange Listing]: FXS-PERP was listed on Woo decentralized perpetual Exchange. Users can trade $FXS / $USDT pairs on Woo Exchange or trade directly from their wallet.
8:[Collateral]: ARB token was added as collateral on Fraxlend. Users can use their ARB token to borrow against FRAX on Fraxlend.
9)[Frax Fact]: New feature which will be able to show how much more ETH yields users will earn with their sfrxETH compared to other LSDs was added on the Frax Fact. For example, if you staked 1000 ETH in sfrxETH instead of rETH, you’d earn over 45% more ETH.
10)[Fraxlend]: Fraximal was introduced by Sommelier Finance. Sommelier Finance is an innovative asset management protocol whose mission is to make DeFi more accessible, profitable, and efficient for everyone. Fraximal will make Fraxlend more capital efficient in the process by deepening liquidity on lending pools, smoothing interest rates, and allowing for borrowers to be more expressive with their collateral.
11)[Liquidity Pool]: New Frax liquidity pools consisting of frxETH/FRAX, FRAX/WETH and frxETH/WETH pairs went live on
Arbitrum Exchange. Users can provide liquidity on Arbidex and start earning rewards.
12)[Collaboration]: Frax Finance collaborated with Dracula Finance to operate as a gauge partner during their launch.
13)[Vaults]: New $FRAX — $MAI and $FRAX — $USDC (Verodrome) sLP vaults were deployed on the Optimism network on Beefy Finance.
14)[Liquidity Staking Derivative]: Dogelon collaborated with Frax Finance to help to secure the Ethereum network by introducing a new ETH staking web3 app into their ecosystem.
15)[Liquidity Pool]: frxETH-ETH LP went live on the BNB chain on Pendle Finance. Users can provide liquidity with their frxETH-ETH LP on BSC network on Pendle Finance .
16)[Exchange Listing]: $FXS token was listed on Okx, users can deposit their $FXS token and trade against the FXS/USDT pair on Okx.
17)[Research Article]: Blockworks Research released an article on Frax Finance on how Frax proved its resilience through peg stability in periods of market turmoil and the creation of frxETH, also on the next for the Frax innovative protocol. Read the full article here.
18)[Regen Radio]: Travis Moore, co-founder of Frax Finance was hosted by Resonate on their Regen Radio program to discuss Frax Finance. You can listen to the discussion here.
About Frax Finance
The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
FRAX: is the stablecoin targeting a tight band around $1/coin.
Frax Shares (FXS): is the governance token which accrues fees, seigniorage revenue, and excess collateral value.
Frax Price Index (FPI): is the second stablecoin of the Frax Finance ecosystem. FPI is the first stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average.
Frax Price Index Share (FPIS): is the governance token of FPI, which is also entitled to seigniorage from the protocol.
Frax Ether (frxETH): is a stablecoin loosely pegged to ETH, leveraging Frax’s winning playbook on stablecoins and onboarding ETH into the Frax ecosystem.
Staked Frax Ether (sfrxETH): is the version of frxETH which accrues staking yield, All profit generated from Frax Ether validators is distributed to sfrxETH holders. By exchanging frxETH for sfrxETH, one become’s eligible for staking yield, which is redeemed upon converting sfrxETH back to frxETH.
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