Frax Finance Monthly Report #30 | August 2023.
A round-up of Frax Finance updates in a few minutes.
Project Updates:
1)[The Stake Out]: Frax Finance team joined in the panel discussion on “The Stake Out” event with the topic “The Great Eth Staking” where they discussed the staked ETH, LSTFi and so on. You can listen to the full speech here.
2)[Liquidity Pool]: Frax Finance collaborated with velocimeter to bring the following pools FRAX/USDC, wETH/FrxEth and FRAX/ERN on Fantom network. Users can provide liquidity on any of the pools and earn FXS and ERN.
3)[Collaboration]: Frax Finance collaborated with PSY to become their launch partner. The partnership will allow the use of $sfrxETH as the initial collateral on PSY, and also launch the $FRAX/$SLSD pool on Ramses Exchange, which will be incentivized by Frax Finance.
4)[Exchange Listing]: $FXS token was listed on Huobi Exchange, users can deposit their $FXS token and trade against FXS/USDT pair on Huobi Exchange.
5)[Liquidity Pool]: Frax Finance collaborated with Arbidex
to bring the following pools FRAX-wETH, frxETH-FRAX, frxETH-wETH, and FRAX-USDC on Arbitrum network. Users can provide liquidity on any of the pools and earn some juicy rewards on Arbidex.
6)[Fraxlend]: Drake Evans, from the Frax Finance core team, wrote a thread sharing more details on the design of the Fraxlend Oracle. You can read the full thread here.
7)[Frax Ecosystem Educational Incentives Program]: Flywheel extended the Frax Ecosystem Educational Incentives Program which has been running for the past 3 months. The program gave the community members the chance to take part in the grassroots efforts to proliferate Frax Finance far and wide and earn reward while doing so. Check here for the guide on how to participate.
8)[Collateral]: cvxFXS was added on Inverse Finance as collateral. Users can supply their cvxFXS on Inverse Finance and borrow DOLA.
9)[Liquidity Staking Derivative]: In the past 30 days, sfrxETH yield was very high against its competitors. sfrxETH holders received high yield of over 60% more yield than rETH and 32% more than stETH. Users can mint and stake their idle Eth here and earn some juicy rewards.
10)[Fraxlend]: Sommelier Finance launched the Fraximal strategy which helps in unlocking the highest yields available in Fraxlend. With Fraximal, users will be able to get the highest Fraxlend interest rates available, Risk mitigation by limiting single pool exposure, Full automation with autocompounding and Gas efficient rebalancing. Also Fraximal will benefit Fraxlend by increasing deposits to Fraxlend, more liquid borrowing pools and smoothing of borrowing costs in high utilization pairs.
11)[Research Article]: A research report which covers the Staked Frax ETH (sfrxETH) was written by the risk and research team operated by Llama. In this report, they examined Staked Frax ETH (sfrxETH), which they comprehensively cover all relevant risk factors of sfrxETH for collateral onboarding. Read the full details here.
12)[Interview]: Ouroboros Capital conducted an interview with Sam Kazemian, co-founder Frax Finance, where he discussed (i) Frax’s plans to back Frax with yield bearing assets ie. US treasuries. (ii) How a T-Bill backed Frax stablecoin could result in more CVX/CRV emissions to frxETH and consequently higher yield for sfrxETH, (iii) Sam’s thoughts on the recent regulatory environment and many more. Read the full details here.
13)[FraxFerry]: A FraxFerry explainer video was made by Wajahat Mughal which explains in detail on how FraxFerry works. Watch the video here.
14)[Liquidity Pool]: Timeless Finance added the following pools $FRAX/$frxETH, $FRAX/$ARB and $FRAX/$FPI pools on their Bunni liquidity engine and $stkETH/$frxETH pool on pStake Finance on Arbitrum network. Users can provide liquidity on any of the pools and earn some juicy rewards.
15)[Liquidity Staking Derivative]: Index Coop, a protocol which helps in simplifying access to risks and returns in crypto, added sFrxEth on their platform. By including sfrxETH, it will increase the diversity of staking methods within their Diversified Staked ETH, which helps to further mitigate risks.
16)[Frax V3]: Sam Kazemian, co-founder Frax Finance was interviewed by Flywheel where he shared details on the Frax V3 and so on. Watch the full interview here.
17)[Lending and Borrowing]: Cream Finance in support of Curve Finance added the support of FRAX as a lending and borrowable asset on its platform. FRAX holders can supply and borrow FRAX on Cream Finance.
18)[Twitter Space]: Sam Kazemian, co-founder Frax Finance was hosted by Flywheel on its Twitter Space where Sam shared some details on (i) Frax v3’s structure vs Maker’s DSR (ii) Frax Bonds (FXB) (iii) frxETH v2 rollout (iv) FraxChain and so on. You can listen to the full speech 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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