Frax Finance Weekly Report #08 | October 2021

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

Project Updates:

1)[Farming]: FRAX liquidity went live on StakeDAO. Users can add liquidity to FRAX3CRV pool and stake their LPs on StakeDao and receive FXS & SDT rewards. Check here for the guide

2)[Achievement]: The graph is our total protocol profit since launch of our AMOs. It’s not linear, it’s parabolic.

3)[Listing]: FRAX Share (FXS) was listed on Bittrex, users can trade FXS on Bittrex.

4)[Partnership]: Frax Finance partnered with GMX, FRAX liquidity will be deployed on Arbitrum and it will be listed on GLP for swaps and leverage trades on the exchange.

5)[Concept]: Frax Finance introduced a new concept, called Decentralization Ratio. Decentralization Ratio is a generalized algorithm that can be used to compute any stablecoin’s excessive off-chain risk. The Frax Decentralization Ratio (DR) is the ratio of decentralized collateral value over the total stablecoin supply backed/redeemable for those assets. Collateral with excessive off-chain risk ie fiatcoins, securities, & custodial assets such as gold/oil etc. are counted as 0.

6)[Voting]: A governance vote was submitted and voted for on Olympus. The voting was to further our collaboration with the Olympus community to become founding users of their Olympus Bond System for balance sheet accrual of FRAX-ETH SLP bonds. The program will also open up the opportunity to bootstrap other pools if/when needed and further align the communities of both Frax and Olympus.

7)[Partnership]: We introduced a comprehensive partnership between our community and the Temple DAO community. Temple DAO has selected FRAX as their predominant and first stablecoin to be used in their treasury.

Partnership Proposals:

  • FRAX will build TEMPLE AMO similar to what we’ve done with OHM. Periodically, we send FRAX expansions to this AMO to purchase+stake TEMPLE (as well as add TEMPLE to LP pools/contracts as they are built by their community)
  • FRAX proposes a FRAX-TEMPLE gauge in the medium term after a few weeks of growth+partnership between the two projects so that LPs can earn FXS+TEMPLE and partake in both communities directly
  • Temple DAO will continue to integrate+use FRAX as the predominant stablecoin in their treasury and receive our support+expansion efforts as we jointly build up this partnership together to make it more systematic across time.

8)[AMO]: Multichain FRAX AMO activation discussion and voting took place and the voting was passed. The proposal is to activate 1 Lending AMO and 1 Liquidity AMO per chain. Comptrollers will pick the most promising and reputable lending market and AMM per chain to conduct initial algorithmic market operations on.

It will activate cross chain Lending and Liquidity/AMM AMOs on Polygon, Arbitrum, Moonriver+Moonbeam, Fantom, Binance Smart Chain (BSC), Solana, Harmony, Optimism, Boba Network, and Avalanche which will allow collateral/USDC/protocol assets to flow through these chains.

9)[Voting]: The voting for Tokemak C.o.R.E Reactors took place. The voting was done by $TOKE holders and they were able to vote for more than 1 reactor. FXS made it to the Tokemak competition coming in as #1 out of 42 protocols that participated in the voting.

10)[Collaboration]: Stake DAO launches DeFi’s first-ever open arbitrage Strategy on Avalanche. Rewards in auto-yielding FRAX LPs and users can stake their sdFRAX3CRV in the Frax gauge to earn additional returns.

11)[Marketing]: On 4th October by 1PM PST, Sam Kazemian, Frax Finance co-founder, had a space with prominent Ohmies to debut our OlympusDAO Pro bonds and exclusive alpha! Our bonds also went live for purchase at the same time.

12)[Farming]: Gelato Uniswap FRAX/DAI Gauge and farm went live.

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.

Website | Docs | Telegram | Twitter | Discord | Governance | Github

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

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

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