# A basic intro to Frax Finance empire

**Published by:** [Prcrypto](https://paragraph.com/@prcrypto/)
**Published on:** 2023-07-18
**URL:** https://paragraph.com/@prcrypto/a-basic-intro-to-frax-finance-empire

## Content

Frax finance is a suite of DeFi protocols aimed at giving the best of experiences in the crypto world.History⁃ began as Decentral bank ⁃ Rebranded to Frax FinanceThe Defi empireThe empire consists of a stablecoin, an AMM, a lending protocol, a bridge, a liquid staking derivative and an upcoming layer 2 chain.1. Frax stablecoinIt’s was partially backed by USDC and algorithmic allowed to float but after the TerraUSD collapse, it reverted to been fully collaterized by USDC. The ecosystem has 3 stablecoins, according to their documentationThe Frax Protocol currently issues 3 stablecoins. FRAX, a USD pegged asset. The Frax Price Index (FPI) stablecoin, the first stablecoin pegged to a basket of consumer goods creating its own unit of account separate from any nation state denominated money. FraxEther (frxETH), pegged to ETH for use as a replacement for WETH in smart contracts.2. FraxSwapIt is the first AMM to be built using the Paradigm TWAMM(time weighted automated market maker).https://app.frax.finance/swap/main It gives for the execution of large orders over time with little to minimal price fluctuations It is used for the buyback of FXS from the market3. Frax LendWorks like Aave or other lending protocols, you can borrow FRAX against assets as collateral.https://app.frax.finance/fraxlend/available-pairs4. Frax Ferry ⛴Frax finance products are deployed across multiple chains, more than 12+ chains, the ferry is to allow for seamless bridging of Frax assets across any supported chains.It’s an in-house bridge .5. Frax EtherAppeared October 2022, since then it’s been growing aggressively.https://facts.frax.finance/frxeth The v2 of FrxETH will see all Liquid staking derivatives LSDs as lending Ethereum to validators , users deposits Ethereum in any LSD form, it gets lent to Node operators after they have dropped some form of collateral. Stalkers receive interest payments as a form of yield.6. Frax ShareIt is the governance token of the protocol, it accrues fees, revenue and excess collateral value and gives it back to veFXS holders7. Frax chainhttps://twitter.com/FlywheelDeFi/status/1669463865116209152?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1669463865116209152%7Ctwgr%5Ef02765064a74be855bfe3972bbec3c75ad252dc6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcoinmarketcap.com%2Falexandria%2Farticle%2Fwhat-is-fraxchain ⁃ It will be a hybrid rollup( it will combine the best of optimistic and zero knowledge rollups) ⁃ It will integrate Frax ferry to expose the Frax empire to the new chain ⁃ It will use FrxETH as gas ⁃ These fees will be paid to holders of veFXS which means more profit accrual to those who locked FXS ⁃ More use of FrxETH will reduce the staked supply of FrxETH and increase the yield for staked FrxETH hodlers ⁃ It plans to use account abstraction accounts ⁃ It’s expected to launch by 2024Reader, how do you see Frax Finance in the next few years.originally published here by me

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