Stablecoin Protocol Frax Finance Launches Lending Market Fraxlend

According to The Block, algorithmic stablecoin protocol Frax Finance has launched its own lending marketplace Fraxlend, where any user can lend and borrow using any token belonging to the Chainlink data feed without permission.

Frax Finance core developer Drake Evans recently revealed two important use cases for FraxLend on the FlywheelPod podcast.

First, Fraxlend will enable the protocol to adapt to the new FRAX through a lending process; Fraxlend allows the Frax Finance protocol to lend directly to FRAX and earn interest through existing money markets.

FRAX is a stablecoin that costs $1. Frax is the first stablecoin protocol with a hybrid algorithm. Frax is open source, permissionless, and completely on-chain - currently deployed on Ethereum (and possibly cross-chain in the future).

Second, Fraxlend will generate more cash flow for Frax Finance, which can be used to burn Treasury shares and Frax Finance's governance token, FXS.

Sam Kazemian, Founder of Frax Finance, said that:

"Fraxlend is one of the newest generations of lending protocols that will showcase new innovations in onchain debt origination. Some of these features have never been built before in any kind of lending system so we are extremely excited to finally bring these use cases to DeFi. "

Drake Evans also emphasized that FraxLend, a newly launched lending marketplace, could create custom term sheets for over-the-counter loan structures, allowing on-chain transactions to be established on the DAO. And transactions can be completed more transparently.

The code is currently published on Github.

Algorithmic stablecoin protocol Frax Finance has launched its own lending marketplace Fraxlend, where any user can lend and borrow using any token belonging to the Chainlink data feed without permission, according to The Block. (Read More)