Frax Finance x Vesper: Boosted FRAX Pool Hits Vesper Grow
Collaboration adds a new incentive to hold FRAX through boosted rewards
ICYMI — Vesper and Frax Finance collaborated on a pool to deliver boosted rewards to depositors. How it works: After depositing into the Vesper FRAX pool, users can deposit into the Frax app, and, in addition to their base FRAX yield, receive boosted yield in VSP and FXS (Frax’s governance token).
But first, let’s dive deeper into the collaboration and the value it offers both communities.
Increasing Frax Finance’s footprint
Frax Finance entered the market with a first-of-its-kind algorithmic stablecoin (FRAX) in late 2020. One year in, the protocol was looking for new ways to boost its exposure, deliver additional incentives to hold FRAX, and increase the DAO’s connectivity to the broader DeFi ecosystem.
A joint solution designed by Vesper
Vesper’s flexible, well-audited yield pools are built for growth and had already been tested in-market for a year without incident. Working hand-in-hand with Frax Finance, Vesper assembled a solution aimed at supporting Frax’s growth goals: A yield-generating FRAX Vesper Orbit pool that delivers yield in FRAX, plus rewards in FXS (Frax Finance’s native token) and VSP (Vesper’s native token).
An integration made simple
In just three months, Vesper immersed itself in the particulars of Frax Finance governance, developed a formal proposal for consideration by the Frax Finance community, and collaborated with the project’s engineers on a streamlined technical implementation. The Vesper platform is designed to be highly composable, requiring a minimal engineering burden for new product integrations.
Since its launch, Vesper’s FRAX yield-generating pool has further incentivized DeFi participants to hold FRAX and continues to attract new TVL to its treasury with Vesper as an onramp.
This is just the beginning of Vesper’s support of the Frax Finance ecosystem — and the FRAX Grow pool’s graduation to the main Vesper app is a first step toward deepening this collaboration.
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