Frax Finance launches a new marketplace for trading activities on the network. Fraxlend was launched to enable more activities on the stablecoin’s network protocol. Here, users would be allowed to perform lending and borrowing activities on the chain’s network without permission.
Before now, Frax Finance performed this process through loans from other lending platforms. However, with Fraxlend, the protocol carries out all the processes independently. Fraxlend helps the protocol generate money flow to aid burning of FXS tokens and interest gains.
The Uniqueness Of Fraxlend
The founder of Frax Finance spoke highly of this marketplace as a network that would birth new creations. He called it a trailblazer in the lending marketplace that stands out from the rest.
He mentioned the uniqueness of the marketplace features above all other lending protocols. In a stead to make it accessible, he said the features would also deploy in the DeFi space.
This would boost activity in the marketplace and encourage users to perform transactions on it. Soon enough, it would gain enough traction and development.
Functionality Of Fraxlend
A core developer that contributed to the creation spoke about the functionality of this marketplace. In a podcast he was a host on, he discussed the two use cases of Fraxlend.
First use case, the protocol would generate new FRAX tokens through lending on the network. Fraxlend would enable the generation of interest through lending in the marketplace.
The second use case will generate funds for Frax Finance. The funds gotten from the marketplace will be used to burn and generate new FRAX tokens. It also aims at generating custom sheets for debt origination to create transparency in transactions.
Frax Finance Stablecoins
The Total Value Locked (TVL) stats dashboard shows that Frax performed more in TVL than any stablecoin. It aggregated 1.18 billion dollars in TVL. This Frax protocol operates with The Frax and FPI tokens.
FRAX, like USDT and Tether, is valued at $1. It is the first stablecoin protocol to use a hybrid algorithm. It is deployed on the Ethereum blockchain network and is open source and permissionless. These characteristics makes its activities more transparent and accessible.
While the FPI token is pegged to the US consumer service. These tokens are speculated to increase in value with time due to this new marketplace. The protocol is putting strategies in place to improve user’s experience in the marketplace.