This Week in Frax - January 11, 2024

Samuel McCulloch
Samuel McCulloch
Jan 12, 2024
This Week in Frax - January 11, 2024

Yield of the Week - Lodestar

Lodestar is a money market on Arbitrum that is receiving STIP rewards from Frax. Right now you can deposit Frax to their pools and earn 21%. Plus you can use the collateral to borrow other assets to use on other pools during the STIP.

The rewards are paid out on both the supply and the borrow, so if you want to post collateral and borrow Frax, you'll earn 13.25% right now for taking a loan.

Flywheel Grant

First off, we want to thank everyone for your support of Flywheel and our continued mission to provide Frax education and outreach. 2024 is going to be our best year yet and we are proud to have built such a great community.


Frax funded LENX ran their LBA this past week on Fjord Foundry, raising $10m for their XD token. LENX, previously Renaissance DAO, pivoted to LENX after their NFT index fizzle out in 2022/3. What a comeback for a team to reinvent themselves and take on a new role in the Frax ecosystem.

LENX's primary product is going to be xBTC, a decentralized wrapped BTC, which they have big plans for deployment on Fraxchain and BAMM. The idea will be to create this product so they can fill the role of what frxBTC potentially could have been.

We interviewed founder John Bell this week, asking him about the LBA, plans for Fraxchain and BAMM, plus future product ideas and integrations. Give it a watch to learn everything about LENX.

For more information about LENX, read our writeup we published yesterday.

How LENX is Shaping the Future of Bitcoin on Fraxchain
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New VaultCraft Vaults

As Frax continues its rollout on Arbitrum and incentive distribution for the STIP, Vaultcraft has added two brand new pools for "soon" to be released pairs for GMX and WBTC.

Looking at the Frax page, the pairs aren't live yet, but VaultCraft does have their pools live and ready for when the pairs launch.

VST Rage Quit

After months of back and forth discussions on a rage quit for VST, the DAO finally approved a 20% fee for exiting the pool early. This was one of the most contentious votes we've had for the Frax DAO in a long time.

The vote that eventually passed was the third proposal proposed by the community. Originally a 0% fee had been proposed and failed, then a 7% fee met the same fate. We're happy to see this rage quit vote get over the line for those who want to unstake.

If you do have funds in the VST lock, the rage quit is optional. Even though VST is winding down, the protocol remains over collateralized. If you want to wait until the end of the lock, there will be no loss of funds other than a fee enacted by the Vesta DAO.

Fraxchain is now Fraxtal

We got word on what the production name for Fraxchain will be... Fraxtal.

Originally proposed by DeFi Dave, we now have confirmation of its market name and potential token name? We will find out more as we head into the end of January and await the launch of Frax's L2.

PYUSD Bribes for Curve

After our interview with Trident last week, they started to bribe the Frax/PYUSD Curve LP with a massive $157,000. Its incredible to see these incentives launch and entrance of PayPal into DeFi.

New Massive Curve Pool

We just noticed that there is a top new Frax pool on Curve for sDAI/FRAX. This is a pool using Frax's $30m sDAI reserves. It is POL from the Frax treasury and is now the largest Frax paired pool... and its earning 2-3% for the FraxDAO.

sfrxETH Added to Eigenlayer


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