The vote, which opened on December 26, has seen all votes cast by decentralized finance (DeFi) lending protocol tokenholders in favor of the proposal so far. All comments in the discussion are also supportive. The vote will remain open until January 1, 2025.

Frax Finance tweet:

According to the vote summary, the benefits of passing the proposal for Frax USD may include creating income opportunities, deeper liquidity, transfer options, and reduced counterparty risk due to the backing of BlackRock.

In the December 22 discussion about the proposal, initiated by real-world asset tokenization platform Securitize, the broker-dealer for BlackRock’s BUIDL, a user named Achaffee said the move would help bridge traditional finance and DeFi.

According to Achaffee, tokenized real-world assets (RWAs) provide an excellent bridge between traditional finance and DeFi by bringing institutional-grade investments onchain.

Achaffee: “In the last 9 months alone, we’ve seen major players, including DAOs and decentralized protocols, put out large public RFPs to explore how they can most effectively strengthen their treasuries or back their stablecoins with RWAs.”

“These early explorations mark a significant evolution in how decentralized players manage their financial resources and consider cross-industry asset strategies,” added.

BUIDL, launched on March 15, surpassed half a billion dollars in assets under management (AUM) in less than four months.

BUIDL is pegged 1:1 with the US dollar and pays daily accrued dividends directly to investors each month through a partnership with Securitize. The fund invests in US government securities.

According to Dune Analytics data, $3.4 billion worth of tokenized treasury funds are now onchain.

Frax is not the first platform to consider a BUIDL-backed stablecoin. Ethena Labs, which is behind the USDe synthetic dollar, announced on September 26 that it was working on a BUIDL-backed stablecoin. This stablecoin, named USDtb, is a separate product offering from Ethena’s USDe. USDtb went live on December 16 and has accrued $89 million in total value locked (TVL), according to data from DefiLlama.

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The post Voting Has Started For BlackRock’s BUIDL To Be Used As a Reserve Asset For Frax Stablecoin appeared first on Coin Engineer.

Noble, renowned within the Cosmos ecosystem as the native asset issuance platform for USDC, will now host Frax tokens. This integration positions Frax for utilization across various applications within Cosmos, including decentralized finance and payments. Notably, Noble’s network spans multiple Cosmos chains such as Osmosis, Celestia, Sei, Injective, and Neutron, enhancing Frax’s accessibility and utility.

While Ethereum-based projects have previously ventured into Cosmos via bridged versions, this collaboration marks a significant milestone as Frax tokens will be natively issued on Noble. This strategic move aligns with the growing trend of interoperability between blockchain ecosystems, fostering greater liquidity and functionality for decentralized finance initiatives.

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The proposal suggests activating the protocol fee switch, with 50% of the generated yield directed towards veFXS holders, while the remaining 50% will be utilized to purchase FXS and other Frax assets for pairing in the FXS Liquidity Engine (FLE). This move aims to bolster Frax’s balance sheet and enhance liquidity for FXS and associated assets.

The proposal also introduces a new tokenomics system designed to fully collateralize the decentralized stablecoin FRAX, along with proposing enhanced yield structures. As part of the plan, veFXS stakers will receive protocol fees, with distributions set to be integrated into both the Ethereum mainnet and the veFXS yield distributor contract on Fraxtal.

Frax Finance had initially suggested activating the protocol fee switch on Feb. 26, reversing a prior decision to halt rewards. Sam Kazemian, the protocol’s founder, expressed that the timing is opportune to activate the switch, anticipating significant revenue generation.

Frax Finance oversees the FRAX USD-pegged decentralized stablecoin, along with its native token FXS and veFXS token, which users receive upon staking FXS. As of March 21, FXS was trading at $7.48, marking a 1.13% increase over the previous 24 hours, according to data from The Block’s FXS price page.

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The proposal, which mirrors Uniswap’s initiative to reward UNI token holders who stake and delegate their tokens, aims to enhance the governance and utility of Frax Finance‘s ecosystem. Stakers who lock their FXS tokens receive veFXS tokens, which grant them governance and utility rights within the platform. These veFXS tokens can be staked on both the Ethereum mainnet and Frax Finance’s layer 2 solution, Fraxtal.

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The community previously voted against revenue sharing in 2022, but with the recent surge of interest in such mechanisms, Frax Finance is reevaluating its stance. Kazemian emphasized that the decision ultimately lies with the community.

Staking and delegation have become integral components of blockchain ecosystems, allowing users to contribute to network security and governance while earning rewards in return. Frax Finance’s proposal seeks to harness this mechanism to further empower its community and enhance participation.

The announcement sparked positive responses from various corners of the crypto community, indicating growing support for the proposed initiative. Frax Finance’s social media post gauging community sentiment received encouraging feedback from industry analysts and decentralized exchange platforms like Curve.

At the time of reporting, FXS was trading at $8.44, experiencing a minor 0.2% loss over the past 24 hours. Despite this, the broader cryptocurrency market, as reflected in the CoinDesk 20 Index, showed a modest 0.68% gain.

As Frax Finance explores avenues to optimize its ecosystem and promote community engagement, the proposed reward system for token stakers could mark a significant step forward in the DeFi landscape.

The post Frax Finance Considers Uniswap-Like Reward System for Token Stakers appeared first on Coin Engineer.

Buckle up DeFi enthusiasts! Frax Finance, the team behind the popular Frax stablecoin, has officially launched its highly anticipated Layer 2 network, Fraxtal.

Think of Fraxtal as a supercharged highway for Ethereum transactions, designed to handle DeFi applications with faster speeds and lower fees. Built on the OP Stack, it joins Optimism’s growing Superchain ecosystem alongside Base, backed by Coinbase.

But hold on, not everyone can access this futuristic highway just yet. Currently, Fraxtal is cruising with a select group of launch partners, including infrastructure providers like Safe, Chainlink, and bridge builders like Axelar and LayerZero. But fear not, general users are expected to join the ride in the coming days!

So, what’s under the hood of Fraxtal? It’s all about DeFi innovation. Imagine a platform specifically designed for decentralized finance applications, buzzing with faster settlements, cheaper interactions, and scalability dreams coming true.

Remember Frax, the mastermind behind the popular Frax stablecoin and Frax Ether? They’re at the helm of this project, bringing their expertise and over $1 billion in total value locked (TVL) to the mix.

And here’s the cherry on top for loyal Frax supporters: on March 6th, there’s an airdrop for holders of vote-escrowed Frax Shares (FXS) tokens, rewarding them with Fraxtal points (FXTL). While the team hasn’t spilled the beans yet, speculation is swirling about these points potentially evolving into a separate token.

The post Frax Unveils Fraxtal: A New Ethereum L2 Network for DeFi Innovation appeared first on Coin Engineer.

Frax’s founder Sam Kazemian says that the use of Frax Finance websites is safe and is investigating what the domain name registrar incident was.

In the early hours of Wednesday, a malicious actor hijacked the domain name of the decentralized cross-chain protocol Frax Finance. However, the project team regained control of it with the assistance of the domain name registrar.

“Name.com contacted us and confirmed that the domain names are now directed to the correct DNS under our control. They told us that they will inform us about what caused the incident after conducting a full review after tomorrow.”

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A Domain Name System (DNS) hijacking occurs when the domain name registrar directs users to a malicious site that looks exactly the same as the fake one to give their identity information.

Such attacks are increasingly becoming common in the crypto field. In 2022, the decentralized finance (DeFi) project Convex Finance had to establish new website addresses after an attacker hijacked the original URLs and directed users to malicious sites. So far, the attacker has not stolen any user funds. Kazemian had previously stated that his team was unaware of the incident and that it did not appear to involve a compromise of email or password.

“It doesn’t appear to show that we did anything wrong in any way. It’s not possible to say that it is safe unless they tell us that the account is safe.” said Kazemian.

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