Frax Finance Monthly Report #33 | November 2023.

Frax Finance Community
3 min readNov 13, 2023

A round-up of Frax Finance updates in a few minutes.

Project Updates:

1)[Collateral]: sFrxEth was added as collateral on ZeroLiquid, a self-repaying loans for LSD tokens. Users can supply their sfrxETH as collateral while the yield generated by their collateral will automatically repay their loan for them, so they don’t need to worry about repayments.

2)[Frax V3]: A detailed breakdown of all the important aspects of Frax Finance Protocol down to the Frax V3 was written by a community member, FarmerTuHao. Read the full details here.

3)[Frax V3]: CoinDesk, a media outlet which invests in cryptocurrencies and blockchain startups released a report article on Frax Finance’s sFRAX staking vault which allows users to take advantage of higher U.S. interest rates. Read the full report article here.

4)[Collateral]: sFrxEth was added as a collateral asset on Mainnet and Arbitrum network by Gravita Protocol, a decentralized borrowing protocol that allows users to obtain interest-free loans using their ETH liquid staking tokens (LSTs) as collateral.

5)[Podcast]: Sam Kazemian, co-founder Frax Finance was hosted by 0xResearch on his Podcast where he explained Frax V3, stablecoin backing with RWAs, Frax Bond & sFrax Revenue and FraxETH V2. Listen to the full podcast, YouTube, Apple Podcasts and Spotify.

6)[Partnership]: Tprotocol partnered with Frax Finance to launch the Curve Finance Liquidity Pool USTP-FRAXBP, which offered attractive $CRV and $TPS airdrop incentives with an impressive APR of 50%. Check out the launch article here.

7)[Smart Farming]: FRAX was added on Metronome protocol, users will be able to loop up their FRAX position on Metronome and earn higher yield. Learn how to loop up your FRAX position here.

8)[Grant]: Frax Finance grant proposal to receive 1.5m ARB as a part of the Short Term Incentives Program (STIP) was approved by the Arbitrum community. The funds will help increase liquidity across the board for the largest L2 and bring in new users.

9)[Interview]: Sam Kazemian, co-founder Frax Finance was Interviewed by Flywheel about the Frax’s role in the STIP program and what the community should expect for the three month period. Watch the full Interview 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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Frax Finance Community

Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic.