Frax Finance Monthly Report #32 | October 2023.
A round-up of Frax Finance updates in a few minutes.
Project Updates:
1)[Frax V3]: Frax Finance launched the version-three of its protocol which is a dollar-pegged stablecoin that uses AMO smart contracts and permissionless, non-custodial subprotocols as stability mechanisms. You can check the doc for more details.
2)[Governance Proposal]: A proposal to introduce Staked FRAX (sFRAX) into the Frax ecosystem, which will allow users to deposit FRAX stablecoins into a smart contract (Standard ERC-4626) and earn interest (denominated in FRAX stablecoins) on their holdings was proposed and passed. Refer here for the full details.
3)[Staked FRAX]: Frax Finance launched the Staked FRAX (sFRAX), an ERC4626 staking vault that distributes part of the Frax Protocol yield weekly to stakers denominated in FRAX stablecoins. FRAX holders can stake their FRAX and earn interest. Over $30M FRAX was staked in less than 24 hrs after launch.
4)[Frax Gauge]: The following Kyber Network pools FRAX-USDC, frxETH-ETH, frxETH-FRAX, FRAX-USDC, FRAX-USDC and FRAX-USDC were added on frax gauge. Users who provided liquidity in selected $FRAX and $frxETH liquidity pools will start earning FXS emissions from the gauge. Read for more details here.
5)[Oracle]: Frax’s frxETH/ETH price oracle was added on Origin Eth, this will help to enhance the protocol’s security and mitigating arbitrage risk. Also frxETH/OETH pool was added on Curve Finance, users can provide liquidity and earn rewards.
6)[Liquidity Staking Token]: $sfrxETH has the highest APR against its competitors in the past 6 months by earning holders 50% more than $rETH and 30% more than $stETH.
7)[Launch Partner]: Sturdy V2 will aggregate Fraxlend’s existing silos and enable users to permissionlessly create Fraxlend-inspired silos with Frax-related assets as collateral.
8)[Vote Bounty]: Frax Finance contributed the largest Vote Bounty on the $veCRV Votemarket for the FRAXBP pool, with 20k $FXS to share among voters for the round.
9)[Twitter Space]: Frax Finance team joined the Stakehouse Finance team to discuss transparency in DeFi, which was hosted by Angle protocol.
10)[Tweet Thread]: Seba Bank released a tweet thread which covers the Frax Finance products, how Frax markets run and how Frax Ether is different from other liquidity staking tokens. Check out the thread here.
11)[Onchain Stablecoins]: Sam Kazemian, co-founder Frax Finance together other teams from other protocols were hosted on Ethena Lab to discuss the Future of Onchain Stablecoins. You can check the recap here or listen to the discussion here.
11)[Frax Protocol Analysis]: Flywheel released a full analysis of the Frax Finance protocol which covers the Frax v1, v2 and v3. On the Frax v1, the protocol regulates collateral ratio based on internal conditions, While on v2, the protocol regulates collateral ratio utilized DeFi primitives on-chain and finally, on the Frax v3, the protocol at 100% collateral ratio captures best yield opportunities on and off-chain. You can check the full analysis here.
12)[Fraxchain]: Fraxchain contracts deployed on the internal testnet. Testnet and devnet are expected by the end of the year.
13)[Team Expansion]: Frax Finance opened two new positions for the Frontend UI React Guru and Senior Solidity Engineer in order to expand its team. Interested applicants who wished to join the Frax Finance team were given the opportunity to apply. Check the full details for the both positions; Frontend UI React Guru and Senior Solidity Engineer.
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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