Frax stablecoin launches on Yield Protocol
Today we are launching the Frax stablecoin as a borrowable asset on Yield Protocol. Get started today by visiting app.yieldprotocol.com
You can benefit in one of three ways:
- Provide liquidity and earn variable yield by becoming a Liquidity Provider for Frax
- Earn a fixed rate on Frax by lending it for a fixed term
- Borrow Frax by providing acceptable collateral (currently ETH, WBTC, LINK, UNI, wstETH, ENS, and more)
Your borrowing rate for Frax is fixed until the term expires. After expiry, you can roll your loan to a new fixed term, or pay a variable rate currently set at 5%. (Determined by governance)To start, the first terms available will be June 2022 and September 2022.
Adding Frax as a borrowable asset makes possible further collaboration between Yield Protocol and Frax Finance. We’ve presented this idea through a call for comments posted on the Frax Finance governance forum.
Background
Frax Finance is a protocol that combines design elements of both collateralized and algorithmic stablecoins to create a stablecoin that is highly scalable, trustless, and ideologically pure on-chain money. It comprises a two token system encompassing a stablecoin, Frax, and a governance token, Frax Shares (FXS). As of April 2022, there are over 2.5 Billion Frax in circulation. To get more information on Frax, visit https://docs.frax.finance/
Quickstart (Borrowing)
2. To borrow, select the “Borrow” tab
3. From the dropdown, select FRAX as the borrowable asset. Input the amount of FRAX you want to borrow and click “Next Step”.
4. From the dropdown, choose from a list of supported collateral to be used against your Frax borrow. We are constantly adding new collateral by request from the community, so reach out on our Discord if there is something you want to see us add! We recommend using a collateral ratio of over 250% to be on the safe side. Click “Next Step”.
5. Confirm the parameters of your loan. If everything looks correct, click “Borrow” which will start an Ethereum transaction to confirm.
Additional Resources
Yield Docs — docs.yieldprotocol.com
Yield App — https://app.yieldprotocol.com/#/borrow
Yield Discord — discord.gg/JAFfDj5
