Frax Finance and NEAR Protocol have announced a new partnership to bring natively issued Frax assets to the non-EVM network through Rainbow Bridge. This will help grow Frax on NEAR and foster greater adoption of decentralized, open source, trustless stablecoins. The partnership will see Frax assets included on NEAR’s leading DeFi protocols Ref Finance and Burrow.
This initiative has begun with the successful bridging of FRAX and sFRAX onto NEAR, ensuring substantial liquidity and seamless asset transfer for users. This move is designed to attract a broader user base, encouraging participation and interaction with minimal slippage across chains. The vision extends to the native issuance of these assets on NEAR, as well as other Frax assets frxETH, sfrxETH and FXBs.
To promote this integration, NEAR will provide incentives for FRAX on two of their DeFi protocols Ref and Burrow. DEX protocol Ref Finance is rolling out an incentive program for liquidity providers in selected pools, while Burrow is set to offer rewards for lending involving FRAX and other stablecoins.
What is Near Protocol
NEAR Protocol is a fully sharded, proof-of-stake blockchain built for mainstream adoption. Performant, scalable, and secure, NEAR is designed to scale Web3 to a billion users with Chain Abstraction. Its native token is NEAR, which is used to pay for transaction fees and storage. NEAR mainnet was launched in April 2020 and became community-operated in September 2020. The NEAR Protocol is developed by the NEAR Collective, a community-driven organization that maintains and updates the codebase. The goal of the NEAR Collective is to create a platform that is secure enough to handle valuable assets like money or identity and efficient enough to be used by everyday people. NEAR protocol targets the scalability problem of traditional blockchains through the implementation of sharding.
What is Ref Finance and Burrow
Ref Finance is a decentralized finance (DeFi) platform built on the NEAR Protocol, designed to facilitate the swapping, lending, and borrowing of digital assets. It is a multi-purpose DeFi platform that integrates various financial mechanisms, offering users a comprehensive suite of DeFi tools. The platform is inspired by established DeFi projects like Uniswap v2, Curve Finance, and iZiSwap, and it incorporates several innovative functions to optimize liquidity provision and trading.
Burrow is a decentralized finance (DeFi) platform on the NEAR blockchain, offering non-custodial, pool-based lending and borrowing services. It allows users to supply assets to earn interest and borrow against them to access liquidity. Emphasizing on layer 1 staking derivatives like stNEAR and stETH, Burrow enables users to leverage staking positions or create self-repaying loans. Interest rates fluctuate based on asset utilization, ensuring flexibility and responsiveness to market conditions. Users can also participate in governance and earn enhanced rewards by staking BRRR tokens
