Frax v2: Algorithmic Market Operations

The bond AMO is in deep testing and a few weeks out. Above is the screenshot for the AMM trading/redeeming interface that can be found at app.frax.finance/bonds (note: this has not been deployed to mainnet).
  • Binance Smart Chain FRAX+FXS tokens! Soon you will be able to deposit BSC FXS on Binance.com directly! We are working on BSC ecosystem integration in the coming days. If you are a part of the BSC community, please make sure to reach out to us if you’d like to include FRAX+FXS in your project or farm. We are very interested in collaborating.
  • FRAX<>FinNexus Pool (Derivatives/Options): Making sure FRAX is a stablecoin that can be used to collateralize, settle, and buy options+derivatives is fundamental to its value proposition. We’re working with FinNexus to make a dedicated FRAX pool which is incentivized with FNX to become their stablecoin of choice for options trading. This is just the start of our partnership on a close level to optimize FRAX as an efficient money for all kinds of options/derivatives trading.
  • Matic/Polygon+QuickSwap: Following are successful integration and bridging of FRAX+FXS onto Matic, we secured the largest QuickSwap partnership of any token! Our FRAX farms on L2 lead the way in yield and liquidity size. We’re excited to lead the stablecoin space in the Matic/Polygon network with QuickSwap. Our goal here is to continue to build together and make FRAX the most used asset on Matic L2.
  • Improvements to Collateral Ratio: PID Controller
    The CR PID controller now accounts for the market cap and liquidity of the two tokens in the protocol. This better accounts for velocity of money where a larger market cap of FRAX is harder to stabilize algorithmically even if the price is above the peg. For example, 100m supply of FRAX at $1.01 means there is 20x more demand than 5m supply of FRAX at $1.01. The prior collateral ratio logic did not account for the market cap of FRAX nor the FXS market cap. The PID controller accounts for market cap, liquidity, and price so that the protocol is aware of money velocity, liquidity, and demand-side dynamics when taking into account when to adjust the CR. This will be a dramatic improvement than before and only will lower the CR when the system can truly support more unbacked FRAX.
    The docs have been updated for technical specs: https://docs.frax.finance/price-stability#pidcontroller-update
  • Frax Liquidity Ventures Program (FLV): We recently announced our initiative to increase FRAX trading pairs by partnering with select projects that want to incentivize their stablecoin LP farms with FRAX instead of DAI/USDC/USDT. We will proportionally channel FXS rewards allotted to the FLV projects that incentivize FRAX pairs. The FLV will help many projects get more exposure to FRAX as their stablecoin of choice and help speed up migration from fiatcoins to FRAX. If you are a project that is interested, make sure to reach out to us on Telegram or Twitter!
The true list is too long to post, but you know who you are if you’ve helped us get to where we are. We owe our sincere thank you and appreciation.

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