Frax Finance Monthly Report #37 | March 2024.
A round-up of Frax Finance updates in a few minutes.
Project Updates:
1)[100% CR / 100CR]: We have finally reached 100% collateral ratio. Expect a governance discussion soon about channeling a certain percentage of protocol income to veFXS and other venues to enhance value of FXS.
2)[FXTL Points]: The first FXTL point snapshot was taken for the veFXS holders and FXTL was deployed on Fraxtal and allocated to the eligible veFXS holders.
3[Gauge]: 4 Fraxswap gauges with incentives went live on Fraxtal. Users can provide liquidity with low fees and also earn with Flox blockspace incentives. FRAX/FPI, FRAX/FXS, FRAX/sfrxETH, and FRAX/wfrxETH.
4)[FPIS to veFXS Merger]: Still in discussion, nothing concrete yet.
5)[veFXS]: veFXS’s Solidity conversion has been audited and is slated to be deployed on Fraxtal in the coming weeks.
6)[frxETH V2]: Now that the Flox & veFXS audit is completed, the next target will be frxETH V2. Audit expected to be completed by end of March and hopefully rolled out in April.
7)[Harmony Debt]: Due to the June 2022 Harmony Horizon bridge hack, there is 8M+ depegged FRAX in Harmony. A governance discussion is expected soon as to whether these debts should truly be counted towards the collateral ratio since they are in effect stranded.
8)[BAMM]: Currently under active development.
9)[Modular Oracles]: Fraxtal was integrated into the Modular Oracle by RedStone. Users will be able to use the gas-optimized RedStone Core model, also Redstone will provide reliable Data Feeds to bolster the Fraxtal builders’ community.
10)[Twitter Space]: Sam Kazemian, Frax Finance Co-founder, was hosted by Optimism on their Twitter page, where Sam discussed about the Fraxtal. You can listen for the full details here.
11)[Liquidity Pool]: $FRAX- $sfrxETH Liquidity Pool was launched by Beefy Finance on the Optimism network. Users can deposit their $FRAX- $sfrxETH LP into the Beefy Finance vault and earn some juicy rewards.
12)[ETHDenver]: Frax Finance team attended the ETHDenver and Sam Kazemian presented the Fraxtal and modular L2s. You can watch the full video here.
13)[Bridge]: Frax Finance launched its Fraxtal mainnet bridge. The bridge will allow users to bridge their assets in and out of Fraxtal network. Users can bridge here.
14)[Oracle]: The Pyth Network released FRAX/USD price feed. The FRAX/USD price feed is now available to smart contract developers on more than 40 blockchains.
15)[LayerZero]: LayerZero, an omnichain interoperability protocol went live on Fraxtal.
16)[Bridge]: Fraxtal was supported on the Axelar Cross-chain bridge. Users can swap their assets using the Alexar bridge.
17)[Partnership]: Frax Finance partnered with Near Protocol to bring natively issued Frax-assets such as FRAX, sFRAX, frxETH, and sfrxETH on Near Protocol and Fraxtal.
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 becomes eligible for staking yield, which is redeemed upon converting sfrxETH back to frxETH.
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