Ethena Labs Allocates $250M For USDeFRAX POL After Approval Of Frax Finance’s Singularity Roadmap
In Brief
Ethena Labs allocated $250 million to USDeFRAX POL through the Curve AMO following Frax Finance Singularity Roadmap governance proposal approval.
Developer behind the decentralized finance (DeFi) protocol for the USDe stablecoin, Ethena Labs (ENA), announced the approval of the Singularity Roadmap proposal for the DeFi protocol Frax Finance (FRAX). As part of this initiative, Ethena Labs will allocate funds of up to $250 million to USDeFRAX POL through the Curve automated market operation (AMO).
After obtaining approval, FRAX initiated the addition of USDe POL, a move intended to craft the deepest pool of dollar liquidity on-chain and diversify FRAX’s sources of yield with this liquidity pool.
Ethena Labs expressed their perspective on the decision through a post on social media platform X, acknowledging the FRAX team as notable contributors within the DeFi realm. “We are excited to work together in the coming months to grow the oncahin dollar economy,” Ethena Labs added.
Fraxlend AMO Proposal for New Pairs Gains Community Approval, Expanding FRAX Token Issuance
The governance proposal aimed at authorizing the Fraxlend AMO for new pairs such as sUSDe-FRAX and USDe-FRAX was published last week. Following community engagement, the suggestion garnered sufficient support to grant Fraxlend’s AMO the authority to mint new FRAX tokens backed by overcollateralized debt.
The AMOs within the Fraxlend ecosystem significantly enhance FRAX, providing ultimate flexibility while maintaining the base stability mechanism that has established FRAX as the most powerful protocol for stablecoins. Frax Finance has implemented several AMOs on platforms such as Fraxlend, Aave, and Rari. Frax Finance further plans to expand the range of pairs within the Fraxlend AMO.
Fraxlend functions as a lending market designed specifically for Frax-based stablecoins. It enables customizable non-custodial loans, debt origination, and the integration of collateral assets into the Frax Finance ecosystem. It constitutes one of the three subprotocols within the Frax Protocol dedicated to integrating decentralized stablecoins. The Frax Protocol, enhanced by subprotocols, is structured to issue stablecoins, including frxETH, FPI, and FRAX.
According to data from Curve Finance, the recently established liquidity pool built on Curve contained a total liquidity value of $44.9 million as of the writing time, with $30.6 million worth of FRAX coins and $14.6 million worth of the USDe synthetic dollar.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
