Frax Fee-sharing Proposal Was Launched For FXS Token Holders

Key Points:

• Frax sets sights on $100 billion in TVL by 2026 and plans 23 new Layer 3 solutions and new asset launches.
• Protocol activates the fee switch, boosting liquidity for FXS through buybacks and FLE.
• The Frax fee-sharing proposal streamlines governance by absorbing FPIS and aims to establish sFRAX as a DeFi benchmark.

Frax, a decentralized stablecoin protocol, has unveiled an ambitious roadmap aimed at propelling its ecosystem to new heights.

Read more:Frax Finance Review: Project To Eliminate Weaknesses of Algorithmic Stablecoins

Frax Fee-sharing Proposal Actives Fee Switch and Launches FLE

The roadmap outlines plans to surpass $100 billion in Total Value Locked (TVL) by the end of 2026 and introduces several key initiatives to bolster its growth.

One of the Frax fee-sharing proposals includes the launch of 23 officially provided Layer 3 solutions within the next year, along with the introduction of new assets such as frxNEAR, frxTIA, and frxMetis. This move is set to diversify Frax’s offerings and enhance its ecosystem’s resilience.

Furthermore, Frax’s native token, FXS, stands at the forefront of the ecosystem’s benefits. With the achievement of a 100% Collateral Ratio, FXS now reaps the full utility and advantages of the Frax stack. The protocol fee switch is proposed to be activated, with 50% of the yield directed to veFXS holders and the remainder allocated to purchasing FXS and other Frax assets for the FXS Liquidity Engine (FLE). This initiative aims to bolster Frax’s balance sheet while enhancing liquidity for FXS and paired Frax assets.

Frax Absorbs FPIS and Sets sFRAX as the DeFi Benchmark

Additionally, to streamline its structure and minimize governance complexity, Frax fee-sharing proposals absorb FPIS into its core framework. This consolidation aligns the entire community behind FXS and Fraxtal’s success. As part of this transition, the conversion rate of FPIS to veFXS is proposed to be lowered by 67%.

Moreover, a governance proposal suggests setting sFRAX with a 50% cap rate and a 5.4% IORB floor rate, positioning it as the benchmark DeFi rate for all sFRAX integrators. To support this initiative, Frax plans to introduce sUSDeFRAX POL through the Curve AMO, with a proposed ceiling cap of $250 million.