Wombat Exchange Partners With Frax Finance To Promote Use Of FRAX

Key Points:

• Multiple-chain stableswap Wombat Exchange and Frax Finance have joined forces to increase the use of FRAX on the BNB Chain. The move aims to increase FRAX stablecoin adoption and liquidity on BNB Chain while giving Wombat users more yield opportunities and options.
• Following the collaboration, FRAX is now included in Wombat’s Innovation Pool, where WOM emissions will be given as a liquidity incentive to support the pool.
• Once the voting gauge is active, users may receive bribes by casting their votes for the FRAX gauge.

The stableswap Wombat Exchange, which is based on the BNB Chain, recently announced a cooperation with Frax Finance.

This agreement intends to increase FRAX’s adoption and liquidity on the BNB Chain and give Wombat Exchange customers new yield prospects. Once the voting gauge is active, users may receive bribes by casting their votes for the FRAX gauge.

Wombat’s Innovation Pool, where WOM emissions are offered to support liquidity, will list FRAX.

Frax Finance is an open-source, permissionless, and entirely on-chain protocol. The first and only stablecoin, FRAX, is supported in part by collateral and in part by an algorithm.

The “fractional-algorithmic” stability mechanism is the inspiration for the stablecoin’s name. The FRAX stablecoin’s market price determines the collateral-to-algorithm-backing ratio. The protocol lowers the collateral ratio if the price of FRAX trades above $1. On the other hand, the protocol raises the collateral ratio if FRAX is trading below $1.

Wombat Exchange is an AMM-based decentralized exchange that allows users to swap stablecoins across multiple chains. This exchange is built on BNB Chain and is compatible with the Ethereum virtual machine (EVM), which can be seen as the Curve fork on Ethereum.

Wombat Exchange offers one-sided liquidity, uses solvency ratios and has an open liquidity pool design, which optimizes profits and reduces costs for investors.

Auditing firms Hacken, PeckShield and Zokyo audited Wombat Exchange smart contracts and found no critical vulnerabilities. In the future, Wombat will develop its own ecosystem.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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