Frax Finance Monthly Report #34 | December 2023.

Frax Finance Community
2 min readDec 12, 2023

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

Project Updates:

1)[Podcast]: Drake Evans from Frax Finance joined Lido and Stakewise team on DeFi Security Summit podcast to discuss the Liquidity Staking Security. You can watch the full podcast here.

2)[Interview]: Winter Soldier was invited by the Flywheel to discuss his Epic Frax thread. It is an extremely well written deep dive into the Frax ecosystem. Watch the full Interview here.

3)[Partnership]: Frax Finance collaborated with USDV money to integrate FRAX-USDV pairs into Frax Finance.

4)[FrxEth]: FrxEth Redemption to Eth was deployed by the Frax Finance team. Users will be able to redeem their FrxEth back to Eth at ratio 1:1.

5)[Collateral]: The debt cap of sfrxETH was increased on Prisma Finance. Users can head to Prisma Finance to mint $mkUSD using their sfrxETH as collateral.

6)[Bridge]: Synapse Labs, a cross chain bridge integrated FRAX in its protocol. Users will be able to bridge FRAX on Ethereum network to the supported chains on the Synapse Labs protocol.

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.