Frax Finance Monthly Report #38 | April 2024.
A round-up of Frax Finance updates in a few minutes.
Project Updates:
1)[Frax Finance Singularity]: The Frax Finance singularity proposal which aims to unify all aspects of Frax Finance into an all-encompassing vision was passed and the fee switch was activated.. The proposal covers the major areas such as veFXS Revenue Share + Fee Switch, FXS Liquidity Engine (FLE), FPIS Resolution, sFRAX & sfrxETH Updated Yield & sfrxETH LRT Functionality and so on. Check out the full proposal here.
2)[Revenue share / fee switch]: Since 100% CR was reached, more protocol income is now funneled to veFXS yield, with the APR ranging ~3–12% depending on lock times vs ~0.20–0.80% only weeks ago before the switch, a 15x increase in yield for veFXS stakers.
3)[Fraxtal veFXS]: Fraxtal veFXS was deployed. Users staking can earn FXTL point airdrop on April 17th. Yield distributor ETA late April to start rewarding these users. Eventually, all veFXS rewards will accrue and be claimable ONLY on Fraxtal. We are working on L1veFXS, a snapshotting system where users can snapshot their Ethereum Mainnet veFXS balances to Fraxtal. This will allow a future unified yield distributor on Fraxtal to “see” the mainnet veFXS. FPIS Locker veFXS will also be included.
4)[sFRAX]: Top cap rate set to 50% with floor as risk free / IORB rate. Goal for sFRAX to be the DeFI benchmark rate. Currently as of this writing, sFRAX has the highest DeFi rate among major yielding assets such as sDAI and Ethena.
5)[sfrxETH]: APY around 4.15%, approx 0.50% APY higher than non-subsidized, non-restaking competitors and only continue to increase as v2 earns restaking and points yield.
6)[frxETH V2]: Audit completed. Currently running fixes. Off-chain bot / backend code still needs work. Additional enginering position being filled to accomodate this.
7)[BAMM]: Auditing in late April.
8)[FPIS Locker]: Per Singularity vote. Modified “fork” of the Fraxtal veFXS.sol code but with the 1.33x-0.33x decay factored in. ETA late April / early May.
9)[Fraxtal]: Fraxtal is now supported on Rabby Wallet.
10)[Fraxtal]: Curve Finance was deployed on Fraxtal.
11)[Liquidity Pool]: sfrxETH/frxETH, FRAX/frxETH and axlUSDC/FRAX pools on Fraxtal went live on Ra.exchange. Users can deposit their LP and earn RA points, FXTL, fees and boosted FXTL.
12)[Insurance]: Fraxlend was added to Nexus Mutual, an insurance alternative for crypto and on-chain protection. Users can lend their $FRAX and protect against smart contract risk, oracle failure, and severe liquidation failure with Fraxlend Protocol Cover.
13)[Fraxlend]: Frax Finance added new Fraxlend pairs for wstETH, LDO, rETH, & LINK. All the new pairs have the AMO support to enable the borrowers to have millions of available FRAX to borrow against. Around 500K FRAX for each of these new pairs was seeded by the Fraxlend AMO.
14)[Vault]: New compounding vaults for FXS/FRAX, FPI/FRAX, sfrxETH/FRAX, and wfrxETH/FRAX on Fraxtal were launched by Adamant Vault. Users can stake their LP tokens on the vault to earn compounding rewards.
15)[Llama Race Singularity]: Frax Finance joined Llama Race for the endgame for the Curve ecosystem. veFXS and sfrxETH holders who were holding at least 900 veFXS voting power or 2 sfrxETH were added in the snapshot which was taken on March 26, 2024, at 10 am (UTC) to earn points.
16)[Liquidity Pool]: Convex adds support for Curve pools on Fraxtal chain.
17)[Partnership]: Frax Finance partnered with Fantom to issue native Frax Assets $FRAX, $frxETH, $FPI, $FXS & more on Sonic tech stack on day one of launch.
18)[Oracle]: Tellor oracles deployed on Fraxtal. Read more details here.
19)[Oracle]: Redstone oracles deployed on Fraxtal
20)[Twitter Space]: Sam Kazemian, Frax Finance Co-founder was hosted by Flywheel on Twitter Space to discuss the Frax singularity proposal. You can listen to the discussion here.
21)[Blast]: Frax Finance team teamed up with the Thruster and Hyperlock Finance team to bring sFRAX and sfrxETH as the first cross-chain yielding assets available on Blast. Users can bridge their assets to Blast network using Stargate Bridge and then stake here.
22)[Bridging]: Frax deployed ~$600K in TVL for various axlFRAX/axlUSDC and axlfrxETH/ETH pools on Mantle, Scroll, and Linea to aid with Axelar bridging, especially to Fraxtal.
23)[Partnership]: Frax Finance partnered with Noble to bring decentralized stablecoins FRAX and sFRAX to the Cosmos and IBC ecosystem. Other Frax Finance tokens, including the Frax Price Index (FPI) and FraxEther (frxETH), will be available later. Read more about the partnership here.
24)[Account Abstraction]: Alchemy collaborated with the Frax Finance team to launch support for account abstraction on Fraxtal. This collaboration will allow all account abstraction features supported by Alchemy on existing chains to be also supported on Fraxtal. Read more about the collaboration here.
25)[Vault]: Fraxtal chain was supported on Beefy Finance, a yield optimizer and crvUSD/wfrxETH/CRV, FRAX/USDC, crvUSD/FRAX, wrfxETH/sfrxETH pools on Fraxtal were added. Also USD/sFRAX, sFRAX/USDC and FXS/USDC on the Base network were added and users can auto-compound their LP positions in the vault.
26)[Collaboration]: Frax Finance team collaborated with Metics team to deploy Frax assets on Metis chain and sfrxETH/WETH pool were supported on Hummus exchange.
27)[Partnership]: Frax Finance partnered with Fjord to support projects raising capital on Fjord and deploying on Fraxtal. Projects that raise capital on Fjord to deploy on Fraxtal can receive extra benefits, points, and incentives for launching via Fjord’s platform.
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.
