Frax x ApeSwap 🚀
We are SO excited to introduce our newest family member: FRAX!
Frax is expanding to BSC, and they’ve chosen ApeSwap to be their primary DEX and trading partner. 🎉 We have a banana-boat load of apetastic announcements, including BANANA becoming part of the FRAX reserve, listings, pools and farms, and of course a new friend and long term partner as we continue to explore DeFi 2.0. 💪
What is FRAX?
Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain — currently implemented on Ethereum and other chains. The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC.
Frax is a new paradigm in stablecoin design. It brings together familiar concepts into a never before seen protocol:
- Fractional-Algorithmic
Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means FRAX is the first stablecoin to have part of its supply floating/unbacked. 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 trades above $1, the protocol decreases the collateral ratio. If FRAX trades under $1, the protocol increases the collateral ratio. - Decentralized & Governance-minimized
Community governed and emphasizing a highly autonomous, algorithmic approach with no active management. Sound on chain monetary policy is king here. - Two Tokens
FRAX is the stablecoin of the Frax ecosystem, targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value. - Crypto Native CPI
Frax’s end vision is to build the first crypto native version of the CPI called the Frax Price Index (FPI) governed by FXS holders (and other protocol tokens). FRAX is currently pegged to USD but aspires to become the first decentralized, permissionless native unit of account which holds standard of living stable.
Frax v2: Algorithmic Market Operations Controllers (AMOs)
With the release of their v2, Frax introduced the concept of AMOs. Simply put, an AMO controller is an autonomous contract that enacts arbitrary FRAX monetary policy so long as it does not lower the collateral ratio and change the FRAX price. This means that AMO controllers can perform open market operations algorithmically (that’s where they get their name), but they cannot simply mint FRAX out of thin air and break the peg.
To learn more about AMO Controllers, check out this awesome article written by Frax Co-Founder Sam Kazemian.
What does this mean for Apes?
We’ve got lots cooking with the Frax team, all of which will benefit our communities, ApeSwap, Frax, and BSC as a whole. 🎊
Liquidity and Volume
Frax has chosen ApeSwap as their home on BSC, meaning they’ve brought all of their BSC liquidity over for both the FRAX and FXS tokens. 🙌 With most major DeFi 2.0 protocols relying on FRAX and their deep stablecoin liquidity pools, we expect to see a ton of FRAX volume across BSC in the coming months, all of which will go through ApeSwap. 👏
BANANA Treasury
The Frax protocol will be earning $BANANA on ApeSwap, officially adding $BANANA to their balance sheet of prestigious projects and making $BANANA a part of the official FRAX reserves. In effect, this will further align incentives between ApeSwap and Frax, kickstarting a longterm mutually beneficial partnership. 🚀
New Listings, Farms, and Pool on ApeSwap
Starting now:
¤ New Listing — $FRAX listed on ApeSwap’s official DEX token list
¤ New Listing — $FXS listed on ApeSwap’s official DEX token list
Starting November 16th at 22:00 UTC, look for:
- New Farm — Stake $FRAX-$BUSD to earn $BANANA 🚜
- New Farm — Stake $FXS-$BNB to earn $BANANA 🚜
- New Pool — Stake $GNANA to earn $FXS 💰
