Frax Finance Weekly Report #06 | August 2021
A round-up of Frax Finance updates in a few minutes.
1)[Partnership]: Orion Money partnered with Frax finance to bring $FRAX DeFi stablecoin into Orion Saver! Users can now deposit $FRAX at https://app.orion.money/ and earn a stable 13.5% APY.
2)[Podcast]: Richard Yan hosted Sam Kazemian and Bennett Tomlin on a Blockchain Debate Podcast to discuss Algo and fractional stablecoins and its flaws.
3)[Proposal]: Proposal to activate veFXS gauges to supplant the Uni v2 FRAX-USDC farming pair, redirecting the FXS rewards on that pair to the veFXS gauge system which can be voted on by veFXS holders, similar to Curve’s gauges was submitted.
4)[Development]: We released an update on the progress of our Guage development:
- FraxGaugeFXSRewardsDistributor.sol: Looks at the Gauge Controller relative gauge weights and sends out FXS to farms.
- FraxMiddlemanGauge.sol: A ‘slice’ of the gauge pie. Has bridge-related code that moves FXS to a farm on another chain. People vote on this from the gauge controller and it acts as a proxy ‘middleman’ for the farm on another chain.
- FraxCrossChainFarm.sol: Receives FXS from bridges and self-regulates its emission rate based on the amount of FXS it receives. Keeps track of unpaid claims.
5)[Integration]: Gelato Network added FRAX pair to the pool in their G-UNI (ERC-20 wrappers of Uniswap v3 positions) on Sorbet Finance.
6)[Voting]: The official snapshot vote to activate the veFXS Gauges was launched. A vote to activate veFXS gauges to supplant the Uni v2 FRAX-USDC farming pair, redirecting the FXS rewards on that pair to the veFXS gauge system which can be voted on by veFXS holders
7)[Conference]: Sam Kazemian was among the speakers during the Chain Link Smart Contract Summit. Sam discussed Frax Finance’s bleeding edge research into building the first crypto native CPI (Frax Price Index) for the future of decentralized stablecoins.
8)[Farming]: Harmony added FRAX as one of their pools in Sushiswap. Users can stake 1ETH/1FRAX Sushiswap Harmony pool and earn Sushi and ONE token. Guide on how to bridge FRAX & ETH to Harmony and add liquidity to Sushi.
9)[Voting]: Vote on how to direct the 16,400 FXS/day emissions was launched. We maintained the FRAX/WETH and FRAX/FXS pairs status quo emissions. A dry run of our emissions system was first done before we opened up the FRAX/DAI and mUSD/FRAX pools, when the gauge period ended.
10)[Integration]: FRAX & FXS were integrated on the https://crypto.com DeFi Wallet.
11)[Gauge]: We started populating our veFXS gauges with 1 gauge per week to get a healthy distribution of liquidity. A gauge to add FRAX-SUSHI Sushiswap gauge to veFXS gauges.
12)[Integration]: xToken Integrated FRAX on their wave 2 xU3LPg. Users can deposit FRAX/USDC to mint xU3LP on xToken Market, xToken team will deploy liquidity to Uniswap V3 on users behalf.
13)[Backing]: FRAX secures strategic backing from Crypto.com Capital.
14)[Voting]: Vote to add FRAX-SUSHI Sushiswap gauge to veFXS gauges was launched.
16)[Development]: We release the Uniswap v3 AMO which deposits collateral and FRAX into Uniswap v3 stablecoin pairs to earn passive trading fees. This is potentially a very powerful AMO that allows the Frax protocol to be the first stablecoin to natively integrate Uniswap v3’s range order technology into the peg mechanism itself, while already offering Uni v3 farming. The snapshot vote (which also has a link to the code) is here.
17)[Farming]: The Polygon-based mStable FRAX/mUSD farm went live. This marks the first native protocol feature we’ve built on another chain outside of ETH L1. Users can stake their FRAX+mUSD.
Guide on how to bridge FRAX to Polygon (Matic) network and add liquidity to mStable.
18)[Proposal]: Proposal to add Pickle Finance to our veFXS whitelist as one of the first protocols to acquire a sizable FXS position to offer their users boosted FRAX farms was submitted.
About Frax Finance
Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. 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.