Frax Finance Launches Fraxlend, Its Native Borrowing and Lending Market

Frax Finance is introducing Fraxlend, the most extensive fractional algorithmic stablecoin system. Anyone may borrow assets using any token that is a part of a Chain Link data stream in this permissionless lending market. Frax Leads Algorithmic Stablecoin Protocols With around $1.18 billion in total value locked (TVL), Frax leads all algorithmic stablecoin protocols, according to DeFiLlama. FRAX and FPI, two stablecoins, are used to run it. FRAX is partially collateralized and tied to the US dollar. FPI links to the American Consumer Price Index (CPI). Having never lost its peg, FRAX has been among the most reliable algorithmic stablecoins. Drake Evans, a core developer for Frax Finance, recently discussed two crucial use cases for Fraxlend on the Flywheelpod podcast. Native Market For Borrowing And Lending The protocol will first be able to mint fresh FRAX through borrowing and lending, thanks to Fraxlend. Through current money markets, Fraxlend enables the Frax Finance protocol to lend FRAX directly and earn interest. Until recently, the only way to do so was to take out a loan collateralized excessively through a platform like Curve. The protocol may now complete this entire process internally thanks to Fraxlend, which creates extra cash flow that can be utilized to “purchase back and burn FXS (similar to how MakerDAO burns MKR from stability fees),” according to the website of Frax Finance. Frax Finance core developer, Dra...