FRAX is the inventor and first fractional stablecoin that uses a hybrid of algorithmic and collateralized mechanisms to stay on a price target. FRAX is currently the #5 largest stablecoin by market cap (1.03B), according to Coingecko. FRAX has also never lost peg a single time in its 26 months of existence (defined as more than 1 cent price deviation on each side). FRAX is already available for lending in Aave, Fraxlend, etc.
In this proposal, we request to add FRAX as a lendable asset in Flux Finance.
Github: GitHub - FraxFinance/frax-solidity: Solidity implementation of the Frax Protocol
- Telegram: Telegram: Contact @fraxfinance
- Discord: Frax Finance
- Governance Discussion: https://gov.frax.finance
- Governance Voting: Snapshot
- Twitter: https://twitter.com/fraxfinance
Frax being a decentralized stablecoin is a good fit to be used as a borrowable asset as an alternative to currently existing stablecoins supported by the Flux Protocol.
- Market Cap: ~$1.03B
- 24h Volume: ~$20M
- Volatility: stablecoin (extremely low)
- Date of deployment: Dec 20th, 2020
- Number of cross-chain token holders: 25,000+
- Address: 0x853d955aCEf822Db058eb8505911ED77F175b99e
- Interest rate curve that follows the one used on DAI and USDC:
- 0% utilization → 0% APY
- 90% utilization (kink) → Overnight Benchmark Funding Rate (OBFR) - 50 bps
- 100% utilization → OBFR + 300bps
- Borrow Cap: No cap
- Collateral Factor (LTV): 0%
- Reserve Factor: 0%