Frax ($FRAX) and Balancer ($BAL) Collaborate to Introduce Fraxtal
It's time for a serious project update from your friendly OG analyst!

The partnership between Frax and Balancer unlocks new opportunities for users, combining advanced yield-bearing technology with Frax's robust DeFi ecosystem. Get ready for supercharged native yield liquidity pools and a best-in-class suite of stablecoin DeFi products with innovative features...

"FraxFinance is one of the fastest growing OP Superchains," according to TokenTerminal.

Fraxtal is an EVM-equivalent rollup on Optimism's OP-stack, aiming to unify liquidity on an optimized L2 network. Yield-bearing assets like $sFRAX and $sfrxETH are foundational to this network.

A significant collaboration between Frax and Balancer integrates Balancer pools into the Frax AMO. Frax has deposited substantial TVL across four LPs on Balancer, creating an incentive flywheel for users on Fraxtal.

Key Points:

Balancer Deployment on Fraxtal
Balancer is now deployed on the Fraxtal network, offering users innovative, self-bribing, yield-bearing liquidity pools. These pools are fueled by Frax's Algorithmic Market Operations (AMO) and enhanced with FXTL points.

Frax Ecosystem Overview
The Frax ecosystem is a decentralized financial (DeFi) economy powered by stablecoins, including $FRAX (USD-pegged) and $frxETH (ETH-pegged). It includes a suite of DeFi applications like:
Frax Lend, an isolated lending market
Frax Swap, a Time Weighted Average Market Maker
Frax Ferry, a slower, simpler, secure method of bridging tokens

Frax's stablecoins are backed by AMOs, which are autonomous contracts executing monetary policy within subprotocols.

Yield-Bearing Assets
Frax focuses on yield-bearing assets that accrue interest automatically. Key assets include $sFRAX, a USD-pegged token that mimics the U.S. Federal Reserve's IORB rate, and $sfrxETH, a yield-bearing token that accumulates staking rewards.

Balancer's Unique Technology
Balancer's Yield-Bearing technology, featuring oracle queries for real-time rates and a self-bribing yield fee mechanism, caught Frax's attention. The self-bribing mechanism directs yield fees to voting markets, scaling incentives with TVL.

Integration and Incentives
LPs qualify for FXTL points, which will be tokenized within 12 months after Fraxtal's genesis.

Live Yield-Bearing Pools
 The following Balancer pools are now live on Fraxtal:
     $sFRAX | $sDAI
     $FRAX | $USDe
     $sFRAX | $sUSDe | sDAI
     $sFRAX | $sfrxETH

"Whereas the Ethereum mainnet is akin to an ‘M1 chain’, Fraxtal’s vision is to become the ‘M2 chain’: A chain in which yield-bearing assets such as $sFRAX, and $sfrxETH are native and foundational."

Reference:
https://x.com/Balancer/status/1828840004941938821

Direct Link:
https://balancer.fi/pools?networks=FRAXTAL

Frax (FRAX) is a cryptocurrency and operates on the Ethereum platform

Frax

Frax ($FRAX) and Balancer ($BAL) Collaborate to Introduce Fraxtal
It's time for a serious project update from your friendly OG analyst!

The partnership between Frax and Balancer unlocks new opportunities for users, combining advanced yield-bearing technology with Frax's robust DeFi ecosystem. Get ready for supercharged native yield liquidity pools and a best-in-class suite of stablecoin DeFi products with innovative features...

"FraxFinance is one of the fastest growing OP Superchains," according to TokenTerminal.

Fraxtal is an EVM-equivalent rollup on Optimism's OP-stack, aiming to unify liquidity on an optimized L2 network. Yield-bearing assets like $sFRAX and $sfrxETH are foundational to this network.

A significant collaboration between Frax and Balancer integrates Balancer pools into the Frax AMO. Frax has deposited substantial TVL across four LPs on Balancer, creating an incentive flywheel for users on Fraxtal.

Key Points:

1. Balancer Deployment on Fraxtal
Balancer is now deployed on the Fraxtal network, offering users innovative, self-bribing, yield-bearing liquidity pools. These pools are fueled by Frax's Algorithmic Market Operations (AMO) and enhanced with FXTL points.

2. Frax Ecosystem Overview
The Frax ecosystem is a decentralized financial (DeFi) economy powered by stablecoins, including $FRAX (USD-pegged) and $frxETH (ETH-pegged). It includes a suite of DeFi applications like:
- Frax Lend, an isolated lending market
- Frax Swap, a Time Weighted Average Market Maker
- Frax Ferry, a slower, simpler, secure method of bridging tokens

Frax's stablecoins are backed by AMOs, which are autonomous contracts executing monetary policy within subprotocols.

3. Yield-Bearing Assets
Frax focuses on yield-bearing assets that accrue interest automatically. Key assets include $sFRAX, a USD-pegged token that mimics the U.S. Federal Reserve's IORB rate, and $sfrxETH, a yield-bearing token that accumulates staking rewards.

4. Balancer's Unique Technology
Balancer's Yield-Bearing technology, featuring oracle queries for real-time rates and a self-bribing yield fee mechanism, caught Frax's attention. The self-bribing mechanism directs yield fees to voting markets, scaling incentives with TVL.

5. Integration and Incentives
LPs qualify for FXTL points, which will be tokenized within 12 months after Fraxtal's genesis.

6. Live Yield-Bearing Pools
 The following Balancer pools are now live on Fraxtal:
     - $sFRAX | $sDAI
     - $FRAX | $USDe
     - $sFRAX | $sUSDe | sDAI
     - $sFRAX | $sfrxETH

"Whereas the Ethereum mainnet is akin to an ‘M1 chain’, Fraxtal’s vision is to become the ‘M2 chain’: A chain in which yield-bearing assets such as $sFRAX, and $sfrxETH are native and foundational."

Reference:
https://x.com/Balancer/status/1828840004941938821

Direct Link:
https://balancer.fi/pools?networks=FRAXTAL

Kawin Rungsimuntakul

I did addional research about Frax Finance. I found out that only 75% of Frax emissions are collateralized by stablecoins. Some of their collateral is just FRAX, because what they are doing is that they mint FRAX, provide it as liquidity to Curve pool, get LP tokens and then stake it on Convex, so I remove this part of FRAX from my research. As a final result the number is 75%. Remaining part consists of different tokens. This part includes all AMOs: lending, investor, main.

Frax has its own lending platform, where users can deposit their collateral: sfrxETH, gOHM, WBTC, etc., and then users can mint FRAX against it. The most popular collateral is sfrxETH. Users lent 42.31m FRAX and borrowed against it 31.25m FRAX.

Source for this information: https://facts.frax.finance/frax/balance-sheet

I did addional research about Frax Finance. I found out that only 75% of Frax emissions are collateralized by stablecoins. Some of their collateral is just FRAX, because what they are doing is that they mint FRAX, provide it as liquidity to Curve pool, get LP tokens and then stake it on Convex, so I remove this part of FRAX from my research. As a final result the number is 75%. Remaining part consists of different tokens. This part includes all AMOs: lending, investor, main. 

Frax has its own lending platform, where users can deposit their collateral: sfrxETH, gOHM, WBTC, etc., and then users can mint FRAX against it. The most popular collateral is sfrxETH. Users lent 42.31m FRAX and borrowed against it 31.25m FRAX. 

Source for this information: https://facts.frax.finance/frax/balance-sheet

Frax FRAX